How to Win the 100 Envelope Challenge

Increase your hand if you happen to’d love an additional $5,000 proper now. We see you. Our palms went up too. Oh, the issues we’d do: pay down some debt, construct up financial savings, pay money for that trip. The checklist continues.

Nicely, there’s a method to get there that’s gotten fairly the excitement on social media—and for good cause! With the 100 Envelope Problem, it can save you up that $5,000 in simply 100 days. Are you up for the problem?

What Is the 100 Envelope Problem?

Okay, however what is this 100 Envelope Problem? It’s a easy, low-tech method to gamify your savings. You label 100 envelopes 1 to 100, and over 100 days (or extra), no matter quantity is on the envelope you choose, you stash that amount of money in there.

The maths works out to $5,050 whenever you’re completed! (1 + 2 + 3 + 4 . . . you may double-check us in order for you. Or simply drive to the greenback retailer for envelopes proper now.)

Learn how to Do the 100 Envelope Financial savings Problem

You’ll want a stack of 100 envelopes, a marker, a aggressive spirit and a wholesome dose of willpower. Then, comply with these steps:

1. Label 100 envelopes from 1 to 100.

In the event you’re doing this with the household, pull out some artwork provides and get the youngsters in on adorning. They will even aid you monitor your money-saving progress with our 100 Envelope Challenge chart. Simply print it off and have your youngsters coloration in every envelope as you save! (Or print it for your self in order for you the visible motivation!)   

2. Retailer the envelopes.

Discover a field or drawer to maintain all of the (at present empty) envelopes and a spot for those which might be about to be bulging with bucks.

3. Fill the envelopes with money.

Okay, sufficient planning. Time for filling. You may seize one envelope every day at random or go so as. If you’d like the problem to get simpler via the months, begin backward (with 100!).

Tricks to Succeed With the 100 Envelope Problem

Okay, these are the essential steps of the 100 Envelope Problem. And listed here are some sensible and motivational tricks to get it completed—beginning with 3 ways to seek out (and make) the additional cash it is advisable to fill these envelopes:

1. Create a finances.

First off, make a budget so you may see the place your cash’s going . . . and so you can begin telling it the place to go. As a result of proper now, you’ve bought $5,050 you need to go into envelopes.

2. Enhance your revenue.

Subsequent up, discover methods to increase your income. That means it is advisable to put in some additional work. Get a side hustle, promote some stuff, work time beyond regulation—or a combo of all three! It’s only for 100-ish days. You are able to do this!

3. Lower your spending.

The ultimate method to have more cash to knock out this 100 Envelope Problem is by cutting some of your spending. Once more, it’s only for 100-ish days! (Though, nobody is stopping you from filling a couple of envelope a day. Simply saying.)

So, cease consuming out, skip the flamboyant lattes, brown-bag your lunch, pause some subscriptions. Who is aware of—you would possibly understand you may stay with out some issues eternally since you favor to have that additional money in your finances each single month.

4. Set a deadline.

Having a set goal for a way lengthy you intend to work this 100 Envelope Problem will aid you keep motivated and targeted. Knocking it out in simply over three months is the normal goal, however if you happen to want extra time, take extra time! Simply write down your deadline and maintain it the place you may see it.

5. Create accountability (and competitors).

A problem is less complicated when you could have an accountability partner to verify in with. In the event you’ve bought a partner or youngsters, you need to all be engaged on this collectively!

But additionally, let’s be sincere—for the reason that 100 Envelope Problem is about making a sport out of saving cash, effectively, making it a competitors towards some buddies could possibly be the additional motivation it is advisable to hit the end line. See who can get there faster, or go in like a crew and plan a bunch reward for whenever you all make it via. 

6. Put that cash to work.

When you’ve bought your $5,050, it’s time to take pleasure in your exhausting work. Don’t waste it. Put it within the finances. Give it a job.

A part of the job needs to be celebratory, however make the majority of that cash work as exhausting as you probably did. Arrange a sinking fund, increase your cash objectives, and transfer ahead with the Baby Steps (aka the confirmed plan to get forward together with your cash—from saving extra to paying off debt to constructing actual wealth).

Will it take some effort? After all! Is it a easy idea you could possibly begin pronto? Additionally after all! However earlier than you begin labeling, let’s speak some execs and cons of taking the 100 Envelope Problem.

Professionals and Cons of the 100 Envelope Problem

Professionals

• Saving up $5,050 is the primary professional. Proper?
• Setting objectives and reaching them makes you a stronger particular person.
• Taking up the 100 Envelope Problem makes your aim of saving cash extra enjoyable!
• Chopping again on spending can promote contentment.
• Budgeting (if you happen to aren’t doing that already) will get you in charge of your cash. (Don’t cease this step when the problem is finished, BTW.)
• Working towards a standard aim as a household or pal group creates closeness.

Cons

• 100 days isn’t a very long time, and but it’s. Some individuals would say it’s a con that it’s a must to work that arduous that lengthy. (Personally, we predict you are able to do it. And also you noticed all of the reward we gave for the problem. We imagine in doing exhausting issues.)
• In the event you’re already tight on cash, due to inflation or some other cause, knocking this problem out in 100 days may not be potential. Following all these steps we listed on budgeting, growing your revenue, and lowering your bills will get you shifting ahead together with your cash. However don’t be afraid to take the problem—and understand you’ll be pushing via it longer than some.
• Our last con doesn’t must be one. And we’ve touched on it a little bit, however let’s be fully clear: In the event you take the 100 Envelope Problem, do all that work, after which don’t have a stable plan for that $5,050—it’ll be gone faster than it took you to fill that first envelope.

That stable plan begins with the factor we maintain mentioning—the finances. And we simply so occur to have a free budgeting app referred to as EveryDollar which you could obtain. Proper now.

Hey, 100 days will go by it doesn’t matter what. On the finish of it, you could possibly have $5,050 saved up, or you could possibly nonetheless be proper the place you’re. In the event you’re up for the work, the outcomes are value it. So, we’ll ask you once more: Are you up for the 100 Envelope Problem? (Heck. Sure!)