Millions believe that New Year is the best time for a fresh start - so why not take on a savings challenge to give your finances a boost in 2023?
Getting on top of your finances is a popular New Year’s resolution with many wanting to sort out their debts, reduce their spending, save more money, or simply start saving.
The 1p savings challenge has become popular saving over the years and by participating in the challenge in January 2023, you may be able to amass a savings pot of nearly £700 by the end of the year.
Here is how it works and your step-by-step guide.
How does the 1p savings challenge work?
The challenge is often described as being relatively straightforward.
On January 1, you move over 1p into your savings account - you then increase this amount by 1p for each day that follows.
So for the next day, January 2, you move over 2p and on the third day you move over 3p - and so on, all the way until December 31.
On this last day, you will transfer £3.65 into your savings account and your total amount saved will be £667.95.
By setting money aside little and often, the challenge hopes to inspire a savings habit that you will continue going forward.
If you decide to take part in the challenge a little later into the year, that’s not a problem.
All you will need to do is add together the totals of each day you missed and then resume the challenge as normal.
Let’s say your inspiration to start saving is sparked on February 9, which would be day 40 of the challenge.
You would then need to transfer that day's total into your savings account which would be £8.20.
There are plenty of ways you can do the challenge.
You can simply move your money into your savings account through online banking, or you could use an actual jar and fill it with pennies and pounds - there are no strict rules for it.
With leap years, which is sadly not relevant to this next year but it will be in 2024, you could save an extra £3.66, meaning the total you can save is £671.61.
