New 50p challenge to save you £1,189 in just two months | Personal Finance | Finance

With the school holidays fast approaching, it’s time for many to plan their much-awaited summer breaks, whether soaking up rays at home or jetting off to exotic locales.

As the country enjoys an extended period of glorious sunshine, thoughts naturally turn towards bolstering the bank balance in preparation for the impending holiday period, hoping to alleviate the strain on household finances.

Yet Rajan Lakhani, the personal finance specialist and Head of Money at Plum, reveals straightforward tactics for amassing up to £1,400 in just a couple of months with a smart alternative to the standard 1p daily savings challenge, reports the Daily Record.

50p savings challenge – save up to £1,189

Building upon the concept of the popular penny challenge, this initiative steps it up with larger daily contributions.

Rajan disclosed: “You might think a 50p challenge won’t do much for your savings, but this savings challenge can easily rack up £1,189.50 in just two months.”

Simply kick off by setting aside 50 pence, increasing your deposit by the same amount each subsequent day. By saving £1 on day two, then £1.50 on day three, and so on, you’re looking at a sizable £1,189.50 kitty after around sixty days, provided you don’t miss a single day.

Clearly, this challenge demands a significant amount of money to be set aside towards the end. However, to make this savings goal more achievable, you could participate with your partner (splitting the contributions between you) and deposit funds into a joint account, or even alternate contributions with friends for a shared holiday fund.

£5 takeaway penalty – save up to £80

If you’re partial to a takeaway, then this challenge might just be for you. Each time you indulge in a takeaway, you deposit £5 into your savings.

Assuming you have one takeaway per week, this can result in savings of £40 over two months. If you have two takeaways per week, you could save £80 over the same period.

Pay £10 when it rains – save up to £220

Despite June and July typically being warmer across Great Britain, we regrettably still experience rainy days during these months. According to records, last year saw 10 rainy days in June and 12 in July.

So, if you put away £10 every day that it rains in June and July, you could accumulate £220 in your savings.

The combined total of all the savings challenges over two months is a staggering £1,489.50. But let’s be realistic, it would be virtually impossible for someone to adhere to all these plans, so concentrate on the one that suits you best.

Here are some additional top tips for keeping your budget on track:

• Set up a daily spend limit – Many banking apps allow you to set up a daily spending limit, which is perfect for budgeting. Just be sure to take into account any direct debits that come out of your account so you don’t miss them.
• Pause subscriptions for two months – we all love our subscriptions, but if your subscriptions add up to a hefty sum, why not pause them for two months and put what you’d spend into your savings? Whilst sifting through your subscriptions, you might find some that you no longer use, and cancelling them could all add up to a nice sum every month.
• Follow the 1% spending rule – when an item costs more than 1 per cent of your annual income, take a full 24 hours to think about it before purchasing. Usually this helps put into perspective just how expensive something is and can deter you from making a regretful purchase.

Ultimately, it’s about cultivating good savings habits and learning to set money aside for holidays, treats, unexpected bills or expenses, and to bolster your bank balance.