You can save hundreds of pounds for next Christmas through a '1p challenge' - and financial expert Martin Lewis has explained how to do this.
The money-saving trick could result in an extra £600 in your budget by December 2023, if you start the challenge on January 1. With this saving method, you put away some coppers each day, starting with just 1p. This gradually grows to pounds as the year goes on - and by December 31 you'll have £667.95 saved up, reports the Liverpool Echo.
Speaking on an episode of the ITV Martin Lewis Money Show, the consumer guru said: "There’s a big savings community out there who do this, it’s called the 1p Challenge. Basically, you save a penny on the first day of the year in a jar or piggy bank, 2p on the second, 3p on the third and keep going throughout the year - by the last day of December you’re saving £3.65, so that would give you £667. 95 in total.”
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How the penny challenge works
From January 1, save as much money as you did the day before, adding an extra penny on each time. For example, if you start by saving 1p, then 2p, then 3p a day – right the way up to £3.65 by the end of December, 2023. If you start on New Year's Day, then by December 31, 2023, you will have saved a total of £667.95.
12-month daily savings plan
Follow this penny savings plan:
Day 1: Put in £0.01
Day 2: Put in £0.02
Day 3: Put in £0.03
Day 4: Put in £0.04
Day 5: Put in £0.05
Day 6: Put in £0.06
Day 7: Put in £0.07
Day 8: Put in £0.08
Day 9: Put in £0.09
Day 10: Put in £0.10
Day 11: Put in £0.11
Total: £0.66
From Day 100 add:
Day 100: Put in £1.00
Day 101: Put in £1.01
Day 102: Put in £1.02
Double the amount on day 200:
Day 200: Put in £2.00
Day 201: Put in £2.01
Day 202: Put in £2.02
Continue until day 300, then add:
Day 300: Put in £3.00
Day 301: Put in £3.01
Day 302: Put in £3.02
On the final 365th day, drop in £3.56 and it's time to cash in your jar. If you have followed the plan throughout the 12 months, you should have saved £667.95 to start off the New Year.
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