Being stuck on bedrest, I have been surfing the net. A lot. Since I cannot work at the moment and won’t be for awhile, finances have been on my mind a lot as well, especially since we are on one income. I have come to realise that living from paycheck to paycheck is no way to go. Duh!
Sure I have RRSPs, but even that is not a huge amount and that is for my retirement. Furthermore, I cannot withdraw from it without being penalised. What we need is rainy day money. Money to see us through tough financial times. Ideally at least 6 months of living expenses stashed away. For me, saving was never something that came naturally to me. I am too in love with gadgets and going out.
Now that we have a kid and two more on the way, it is time to knuckle down and be responsible adults. Time to get started on that nest egg. Realistically, I don’t have tons to put into savings, so getting that 6 months of living expenses together is not going to happen tomorrow. However, I can start with baby steps. So while surfing the web, I came across quite a few bloggers who are doing the 52-week savings challenge. I don’t know who came up with it first, but I think it is a brilliant idea.
One blogger in particular is doing a double 52-week savings challenge. I think that is a doable goal for our circumstances, so I am going to run with it.
So how does it work? Basically, the first week you begin the challenge, you need to save $1 as it is week one. The second week of the challenge you need to save $2 as it is week 2. The third week, $3. The fourth week, $4 and do on until week 52 at the end of they year where you will have saved $1,378. With the double challenge I am planning on taking, you double the amount per week: $2 on week one, $4 on week 2, $6 on week 3 and so on. Seeing as we are in week 7 now, I have some catching up to do. It is only $56 I need to stash aside to be caught up so I can live with that.
I am also planning on throwing any extra money we have into the pot to make it grow faster. For example, leftover money that was not spent on our grocery budget. The only strict rule, I have is to deposit the minimum from the challenge into the pot every week.
Here is the chart for the double money challenge (you can click on the image to print from the source):
What about you? Are you taking part of the challenge? How is it going so far?