Previously, I have mention about the 26 Weeks Money Challenge. The 26 Weeks Money Challenge is the first basic, if you are confident enough to clear the 26 Weeks Money Challenge with ease, go this this level of challenge.
This level of saving quest is to increase your monthly savings by 2% every month until you hit your desire target like save 60% of your annual income with the current saving level of just 40%. This will gives you more steady improvement in the long run rather than straight away jump to your target which might affect your current lifestyle.
Also the other reason why this incremental challenge is because sometimes people will try tons of ways like skip lunch and dinner, or eat instant noodle to cut down their expenses so that they can hit their desire saving target in the shortest amount of time. Well, this is actually bad for you because by doing that, you are killing your body, and when your body is unable to take the extreme change in lifestyle, it will naturally break down and you will have to spend tons of money for medical bill.
So do take this challenge if you are still far away from your saving target. For those who have achieve their desire monthly saving amount, see if you can achieve more by looking out for higher returns in low risk instrument like high interest saving/current account, Singapore saving bonds and etc.
I will post my results at the first day of August, see if I can hit a 2% increase in my savings!
This savings quest of increasing your monthly savings by 2% every month is tough! What's your current monthly savings rate? Do blog about your efforts to achieve this if you have time as it will be interesting to see where your additional savings are coming from.
ReplyDeleteHi Finance Smith,
DeleteThe goal is to increase saving by 2% every month unit you hit your monthly saving goal. So if you already hit your desire monthly saving goal, then this challenge will not be applicable to you. Unless you wish to challenge yourself to generate more passive income.
My monthly saving rate is around 1,800. cause my aim is to hit a saving of 2,200 per month so that I can achieve my short term financial goal of purchasing a 2 bedroom condo unit. Yes, it is indeed tough that's why this is the second level of the saving quest.
So at the end of this month, I should save extra $36 by increase in my bank interest (since my saving keeps increasing), cutting down unnecessary expenses (step by step), or even have a pay rise and save some of the pay rise to hit the target.
This challenge is to encourage discipline so that we can hit our desired saving goals.
Yea at the end of this month, I will blog my result to see if I can hit the 2% increment in monthly savings.
Regards,
James
maybe easier to increase income together, so the quality of life don't drop?
ReplyDeleteHi Dowz,
DeleteYea, with the increase of income, certainly, the 2% increment will seems to be easier without affecting the quality of life. However, there are situation whereby company freeze their employee's salary, or the other possible scenario is that people tend to spend almost all of their income, which mean higher income = higher expenses.
I have mention in my previous post before: http://jyklmoneyblog.blogspot.sg/2016/07/what-is-good-investment-plan-part-one.html, that you can cut down on your expenses without affecting your quality of life. This is to address the possible issue that most people might purchase things that they don't actually need. By cutting down on those excessive expenses (which they don't use), I believe they can achieve the 2% increment in their savings to reach their desire monthly saving goals.
Of course, you are certainly right on that, just that I am thinking the other side of the issue. hahaha.
Regards,
James
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