The Martin Lewis backed, penny-saving challenge is back for 2023, and using it could well pay for next Christmas!
So how does this work?
You start by saving 1p on the 1st of January, then 2p on the 2nd of January, then 3p on the 3rd of January and so on – saving what you saved the day before, plus a penny more each day – right the way up to £3.65 saved on the last day of December. If you started on 1 January 2023, then by 31 December 2023, you'll have saved a grand total of £667.95!
There are a couple of ways to take part in the challenge:
1. Cash In a jar or piggy bank - If you use cash, the challenge is traditionally done by putting loose change into a piggy bank or jar daily. Nowadays, not everyone has cold hard cash, so this may become more difficult the further you get into the year.
This Money Saving Expert chart shows you the daily amounts you need to put away, with a handy tick system, so you know when you've added the amount to your piggy bank.
You can download the chart as a PDF.
If you are running short on cash or maybe better off than normal, you can add the daily amount in a different order, so if you are well off, you can add one of the larger amounts to your piggy bank, and if you're skint, add one of the smaller amounts; as long as the amounts are ticked off by Christmas, it really doesn't matter!
2. Go digital! Manually transfer the cash into a savings account via online banking, in small amounts if your bank allows, or monthly amounts.
Banking service Monzo actually has this scheme set up on its app, so you can set it to do this automatically, and it will automatically transfer the daily amount from your bank account and put it into a money pot, which will just keep adding up until you stop the transfer setup. It's super handy as you can withdraw the funds in time for Christmas, and the app starts again, ready for Christmas 2024! It doesn't get much simpler than that!
You might find making a weekly or monthly deposit to a savings account easier if you don't want to mess around with small amounts.
The chart below shows you how much you would need to transfer to a saving account every month to keep up with the money challenge.
You can set these payments up as a standing order via your banking app so that when you get paid, the money will automatically be sent to your savings account.
Alternatively, set up a standing order for £55.67 every month, which is what the challenge would cost you over 12 monthly payments to save enough for Christmas!
Use a different bank account to your normal one for your Christmas savings; otherwise, it's very easy to spend! Consider using Chips saving account, they will pay you 3% interest (paid monthly!) on your savings and is free to set up and use, and you can transfer your money to another bank account in minutes once you've reached your target!
Download the app and register with Chip here for free!
Whichever way you choose to do it, this scheme is a fab way to save throughout the year, to make next Christmas less expensive and more relaxing, without the stress of trying to find the money for gifts and festive treats at the last minute and saves using credit cards, or overdrafts!