Martin Lewis’ MoneySavingExpert website has revealed how beginning a new 1p challenge this weekend could set you up for saving in 2022.
The website has shared tips for the challenge which could see you save more than £600 by the end of the year.
This is how you can get involved.
What is the 1p challenge?
As detailed on the website, the challenge comes from starting by saving 1p and increasing this value by one pence each day.
For example, you begin by saving 1p on 1 January, 2p on 2 January and so on.
It allows for gradual saving and the highest daily amount that you will put aside is only £3.65, to be contributed on 31 December 2022.
How much will I save from the 1p challenge?
While it may seem like a small savings challenge, the results prove it for themselves.
Those taking part will save £670 per year, which increases if more people are adding to the pot.
Molly is one participant in the challenge who reaped the benefits of the savings made.
She said: “This year, I put my money where my mouth is and decided to complete the challenge alongside my boyfriend, adding both our challenge earnings to the same pot.
“Transferring the full monthly amount each payday meant that by December 1 we’d saved up the exact amount needed to pay for our new carpets, in full.
“You can save £667.95/yr if you complete the challenge alone, which multiplied by two people taking part is £1335.90.”
How do I take part in the 1p challenge?
It’s simple to take part in the challenge if you are able to.
If you are able to use internet banking, you can transfer the daily amount into a separate savings pot.
If you don’t use internet banking, you can use the tried and tested method of using a savings tin to save those pennies.
Additionally, if you would prefer, you could calculate the weekly or monthly total for the challenge and choose to save this as a lump sum rather than make contributions daily.