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I know what you’re thinking. $100 a week isn’t a whole lot! You are 100% correct! What if I told you it’s wacky challenges that push people to the limits of their finances? Some may have high-interest-rate savings accounts; some may have the envelope stuffing method, but the $100 method is for the hardcore savers. Let’s get into the benefits of potentially living off $100 a week, how you can succeed in doing so, and potential caveats.
How Far Does Your Dollar Stretch?
The purpose of the $100 challenge is to test your limits as a saver. What if you were truly down to your last $100 for the month, and payday was still a week away? What are you going to do? I wouldn’t recommend dumping all your cash until you were down to your last $100 to try this method out. No, no, don’t do that! But maybe, just maybe, you can deposit a large chunk of your paycheck into your savings account and give this test a try. You’ll begin seeing how much you spend when you’re down to your last buck. The unfortunate thing is that many families operate this way. They find a way to manage and get by. So why can’t you? Try out the $100 challenge and see how much restraint you have.
Why Should I Save?
Some of you might think that this $100 challenge seems strange, and you’d be correct. But do you have a financial goal you’re trying to get to? Do you want to buy that new flat-screen TV? Or is your vehicle just getting quite old? Saving to the max could potentially get you there faster. Sure, you could always finance such things. Or you could always get low-interest loans. But there is a strong satisfaction in paying for your items outright in cash. The $100 challenge is merely to test your saving savvy and to see just how well you can cut financial corners (safely, of course!) to get your money where you want it to be. Imagine putting 30% of your fun money away every month and letting it accrue instead of going out to eat and buying new clothes. It sounds pretty cool now. Doesn’t it?
Will I ever financially recover from this?
A significant caveat to this challenge is that you can feel the heavy pressure behind all your purchases. You are creating an environment where you can only afford the essentials, so you may need to talk to your partner or friends. Let them know this week, you can only go to the grocery store or work. The key to this challenge involves having all your ducks in a row, bill-wise. Ensure you pay all your bills upfront so you don’t get a random expense that derails this entire experiment. Remember, we are completing this challenge to save up a hefty chunk of change, not to get riddled with credit card debt or delinquency notices!
This trial tests your saving prowess and your restraint. You must also guarantee you still have access to your removed funds. You don’t want to be in a place where you purchased an expensive toy and did this challenge only to find out you forgot someone’s birthday is tomorrow and need to buy a present! Set an end goal, and once you have reached that goal, congrats! You’ve completed the $100 challenge.
Did you like this article? Check out this one on our sister site: Downsizing: Making the Transition to Smaller Living Spaces.
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