Although making money from home is important, it also important to be able to save some of that money as well. Considering you would be saving money on gas and lunch, you should be able to put up a small portion of you earnings.
Compounding is defined as “The ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings. In other words, compounding refers to generating earnings from previous earnings”.
That same concept can be applied to saving your money with the 52 Week Challenge. If you save the same amount as the previous plus some, you can generate a higher level of savings. Below I will explain how you can compound your savings in 3 different ways to save up to $1,700 a year.
First Options : 2-1 Method
Start with $2.00 on the first week. Each week, you deposit 2 more dollars than you did the previous week up until week 27. On week 27, you deposit $27. From there, you deposit 1 more dollar than you did the previous week. By the end of the year, you could save over $1,700. If you do this every year for 5 years, you could save up to $8,645. Imagine what you could possibly do with that much of savings.
Second Option: Onesie Method
If the first method is too much for you then you can try the second method. Start with $1.00. You deposit 1 more dollar then you did the previous week. By the end of the year, you could save up to $1,378. If you do this method of savings each year for 5 years, you could save up $6,895.
Third Method: Monthly Deposit
If you are working from home, most companies don’t pay weekly. Majority of them will pay monthly. You can still apply a similar method of deposits. Start with $15.00. Each month, you deposit 20 more dollars than you did the previous month.
You could also reverse each way so that you make larger deposits in the beginning of the year and smaller deposits at the end of year. That way, you are not decreasing your Christmas money fund in order to put money up in savings.
Do you have a diferent way you like to save money throughout the year using the 52 week challenge or even another challenge? Share your method below.