People Are Doing The 'Envelope Challenge' To Easily Save Money Throughout The Year

Do you have a hard time setting aside money?

So do I. Luckily, this tip might help all of us! It's called the "Envelope Challenge," and it's designed to help you set aside small amounts at a time, with one big reward at the end of each year.

Saving money can be a big challenge for a lot of people.

Unsplash | Michael Longmire

Everyone always talks about "putting money aside" so that when they want to do something special, like go on a vacation or splurge on a big ticket item, they have the funds to do so.

However, day by day we all spend more than we truly want to.

Unsplash | Olena Sergienko

Whether it's buying ourselves our morning coffee or saying "oh well" and ordering in dinner for delivery, everything adds up at the end of the month.

Truly, we don't even realize how much we spend every day.

When I sit back and look at my credit card statements, I'm baffled by how much I spend on things I don't really NEED!

That's why the "Envelope Challenge" is perfect for people like me, who always have a hard time setting aside money.

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The best part about it is that you put small amounts aside at a time, instead of putting your whole paycheck right into your savings. So, it still leaves you with a little to spend.

Here's how it works:

Unsplash | Josh Appel

"We did the envelope challenge this year and decided today we would open all our envelopes! Yay for an easy way to save up some Christmas money!!!" Cari Nicole Floyd submitted to Kitchen Fun With My 3 Sons on Facebook.

You're going to need some envelopes.

Unsplash | Kate Macate

"We just labeled 52 envelopes $1-$52, then randomly picked an envelope each week and paid the amount."

Make sure the envelopes aren't in order, so that you don't know what number you're going to pick!

Then, you set yourself a deadline.

Unsplash | Siora Photography

"We would draw an envelope on Monday and have to pay the envelope by Friday."

On Friday, you have to fill the envelope with the designated amount and seal it.

The author also got their daughter involved!

"We also had a '???' envelope where we had Lily write a number in it to be a surprise to whichever one of us drew that one... it was $89 lol."

You'd be surprised how much it adds up to.

"If you do the $1-$52 and do it each week all year, it adds up to be $1378 saved!"

That's over a grand that you'll have set aside for the end of the year!

Or you can open it early, in time for the holidays.

Unsplash | Jonathan Borba

"We opened ours a little early so ours was a little less than that. We can’t wait to start over beginning January 1st, 2021 and do it all again."

People contributed their own ideas, too.

You can do the same challenge with pennies! Finally, a use for arguably the most useless coin sitting in a jar in your room. Or in your pocket. I don't know where you keep money.

Others offered helpful tips for those who aren't on a fixed income.

If you get paid on a less than regular schedule, do 12 envelopes and contribute whatever you can to that envelope. Start low and work your way up!

There's even a hack for Canadians!

Did you know Canadians no longer have pennies, and we don't have dollar bills? We have loonies and toonies, which are $1 and $2 coins. Pop those in an envelope and enjoy!