How To Save RM1,400 in One Year

With 2022 kicking in, now would be a good time to start planning your finances for the year. Why not think about saving more by doing the 52-week savings challenge?

It’s simple – Start by saving one ringgit at the start of the year and save close to RM1,400 by the end of the year!

How to save money with the 52-week savings challenge?

In this challenge, you begin by setting aside RM1 in the first week of the year. Then, you increase your savings amount each week according to the week number. That’s RM1 for week 1, RM2 for week 2 and so on until the end of the 52 weeks of the year.

If you follow this plan every week for one year, your savings by the end of the year should look like this:

Why should you use the 52-week savings challenge to save?

Even though this challenge sounds pretty easy and affordable, we know that saving up can be tough for some people. The 52-week savings challenge encourages you to work towards your financial goal because it shifts the focus towards building a long-term habit. Saving becomes less challenging when you know that you’re only saving an extra RM1 every week and lets you slowly get used to the habit of saving. As you start seeing your savings grow, you’d also feel more motivated to continue saving.

To reach the same savings goal of RM1,378 by the end of the year, you’d have to set aside about RM115 a month. Since some of us might find it challenging to set aside RM115 every month, breaking down your savings into a smaller amount week by week might be easier to do.

The best part? Setting aside a few bucks each week (which could be equivalent to what you might spend every week on your daily teh tarik break plus any other spending you might not need) is way more achievable than committing to RM115 every month.

3 tips to jumpstart your 52-week savings challenge 

Interested to take on this challenge with the start of this new year? Here are some tips to get you started:

1. Figure out where you’ll keep your savings: If you can have a bank account just for your
   savings, use this account to save your money every week so that you don’t end up spending the money you’re
   saving! If even this sounds like too much work for you, you can always keep your money in a jar or cookie tin.
   But remember, it’s always better to keep your money in the bank for security reasons and so that you can earn
   interest (or profit from Islamic banks).
2. Set reminders on your phone: You can use your phone’s alarm clock function or calendar to set
   reminders that will notify you when it’s time to set aside your money every week as well as how much you need to
   save for that week.
3. Make it a game: Saving can be fun if it’s an activity you take part in with a partner or group.
   Finding buddies to join you on this challenge can help you stay responsible towards your goal. You could even
   get into some healthy competition with your friends to motivate you to keep saving! You may find that the
   challenge becomes something you want to win, rather than something that you want to avoid.

Once you’ve gotten into the habit of saving with the 52-week savings challenge, you might be ready to move on to other savings goals. Click here to read more about the types of savings you can have. In fact, the 52-week savings challenge doesn’t always have to be used as a new year’s savings goal. You can use similar techniques to break down larger financial goals such as buying a car or buying a house, or even clearing your debts.

We know that saving might be challenging at first if you haven’t gotten into the habit. Remember, you can always start small and start now! If you decide to start the 52-week savings challenge, we’d like to wish you luck in reaching your goals. As we start off the new year, we’d also like to thank you for supporting and visiting Multiply and wish you a Happy New Year!