Sure, saving money can often feel overwhelming, but fun challenges like the 100 Envelope Savings Challenge is proof that sometimes, making a game out of it actually works. This challenge simplifies the savings process while adding an element of fun — because who doesn’t love a little surprise every day? (Especially when the surprise isn’t another unexpected bill.)
What Is the 100 Envelope Savings Challenge?
The 100 Envelope Savings Challenge is a structured savings method designed to help people accumulate a significant amount of money over a set period. By systematically setting aside varying amounts of cash daily, participants can save a total of $5,050 in just 100 days. This approach has gained popularity for its simplicity and effectiveness, appealing to both seasoned savers and those new to financial planning.
The challenge works by numbering 100 envelopes from 1 to 100, randomly selecting one each day, and saving the corresponding amount. For example, if you pick envelope number 37, you save $37 that day. By the end, you’ll have saved over five grand without even realizing it. (Okay, maybe you’ll realize it, but it likely won’t feel as painful).
How to Do the 100 Envelope Savings Challenge
Embarking on the 100 Envelope Savings Challenge is straightforward. Here’s a step-by-step guide to help you get started:
Step 1: Prepare Your Envelopes
Get your 100 envelopes and label them from 1 to 100. This numbering represents the dollar amount you’ll save in each envelope.
Step 2: Organize the Envelopes
Place all the labeled envelopes into a container/. You can keep them in order, or, if you want some spontaneity, shuffle them around so it’s a surprise every day.
Step 3: Daily Selection
Each day, draw one envelope from the container. The number on the envelope indicates the amount of money, in dollars, to place inside. For example, if you pick envelope number 25, you’ll put $25 into it. Super simple.
Step 4: Secure Your Savings
After adding the cash, seal the envelope and store it in a safe place, probably not under your mattress, but you’ll figure that out. Repeat daily.
Step 5: Track Your Progress
To stay motivated, keep a savings tracker or a checklist to mark off each completed envelope. By the end of the 100 days, if you’ve followed the challenge diligently, you’ll have saved $5,050. Very impressive.
How Much Money Do You Save with the 100 Envelope Savings Challenge?
By participating in the 100 Envelope Savings Challenge, you can save a total of $5,050 over 100 days. This is calculated by summing the numbers from 1 to 100:
1 + 2 + 3 + … + 100 = $5,050
This method offers a tangible and systematic approach to saving, making it easier to reach significant financial milestones. It’s like sneaky saving — you focus on small amounts daily and you reach a big goal without even realizing it.
Benefits of the 100 Envelope Savings Challenge
Some supersavers think that the reason others struggle with saving money is due to lack of discipline or motivation. But though that plays a role, one of the main reasons is simply because our brains aren’t naturally wired for it. It’s a phenomenon called delay discounting — and it’s the phenomenon where humans simply prefer immediate rewards over delayed ones. It’s linked to our brain’s reward system (if you want to nerd out, the ventral striatum) which processes instant pleasure. Meanwhile, the prefrontal cortex is in charge of planning, long-term goals, and everything that goes with it — like self control. These parts of the body often don’t agree, and that ventral striatum tends to win. This makes things like saving more challenging than immediate spending.
Luckily — we can trick our brains. And the 100 Envelope Savings Challenge can address the issues our brain naturally has around the saving process.
1. Encourages Consistency
Saving money is easier when you make it a daily practice. This challenge tricks you into creating those strong financial habits.
2. Makes Saving Fun
Since you randomly pick an envelope daily, the element of surprise keeps things fun and exciting. Will you draw a $5 or a $50? A little excitement will make those 100 days fly by and you’ll have all that cash in no time.
3. You can reach a big goal without stress
Five grand in savings in 100 days is a huge deal. This method breaks it all into easy to digest, bite sized pieces with a clear end goal.
4. It’s flexible
The challenge can be adjusted to fit different financial situations. For example:
- Save less frequently (e.g., 3 envelopes per week instead of daily)
- Use smaller numbers (e.g., 1–50 instead of 1–100 for a $1,275 total)
5. You can go digital
If handling cash isn’t your thing, apps like Qapital and Digit let you do this electronically by automatically transferring money to savings based on pre-set rules.
Drawbacks of the 100 Envelope Challenge
As great as the challenge is, there are a few potential downsides to consider. First and most obviously, you need 100 envelopes — which might sound excessive (because it is). Also, finding a place to store all those cash-filled envelopes can be a hassle, especially if organization isn’t your strong suit.
Second, unless you opt for a digital solution, this challenge traditionally relies entirely on cash, which isn’t always practical in today’s world. Most people rarely carry cash anymore, making it inconvenient to withdraw money regularly.
Lastly, drawing a high-numbered envelope a few days in a row could unexpectedly strain your budget. And not everyone can comfortably set aside $80 to $90 dollars multiple days in a row, so you might need to tweak the rules to fit your finances.
Tips for Success
To maximize the benefits of the 100 Envelope Savings Challenge, consider these tips:
1. Customize the Challenge
If saving $5,050 in 100 days isn’t feasible, adjust the challenge to fit your current finances. For example, you can:
- Use fewer envelopes (e.g., 50 envelopes for a $1,275 savings goal)
- Pick envelopes weekly instead of daily
- Reduce the envelope numbers (e.g., 1–50 instead of 1–100)
2. Stay Consistent
Set a daily reminder to ensure you don’t miss a day. Making saving a non-negotiable part of your routine and saving will become second nature in no time.
3. Shuffle Your Envelopes
Mix in smaller numbers with larger to avoid financial stress as you make your way through the challenge.
4. Use a Savings Tracker
Visual aids, such as a savings tracker or journal, can help you monitor your progress and stay motivated.
5. Secure Your Savings
Store your envelopes in a safe location to prevent loss or theft. Alternatively, consider depositing the cash into a dedicated savings account regularly.
6. Celebrate Milestones
Acknowledge and celebrate your progress to maintain motivation and reinforce positive saving habits.
Is the 100 Envelope Challenge Right for You?
This challenge works best for people who like structures, goal-oriented savings methods or who want a fun, gamified way to save money. While commitment is key in all circumstances, the challenge is particularly useful for people who prefer a tangible approach to saving rather than automated transfers.
However, it may not be the ideal choice for those with highly inconsistent incomes or financial hardship. In those cases, a modified version — such as reducing the number of envelopes or extending the timeframe — may be a better fit.
The statements and opinions made in this article are for general informational purposes only and are not intended to provide specific financial advice or recommendations for any individual or any specific security or investment product. The views and opinions reflected in this article are subject to change at any time without notice. For advice specific to you and your situation, please speak with your Financial Advisor.
Advisory services offered through Willow Partner Advisors, LLC, an SEC-registered investment advisers. Past performance or examples are not guarantees of future results.
