Finding the balance between living your best life and saving money isn’t easy.
During mydebt payoff journey, depriving myself of fun purchases made hitting my money goals feel like drudgery.
I devised a fun savings challenge to keep myself motivated.
So I rolled this challenge out to them, and it was an instant hit.
Read more:Going on a Financial Diet?
Try One of These Savings Challenges
What is the 5% cash-back challenge?
I implemented the rule by paying myself 5% back each time I hit adebt payoff goal.
Depending on your financial goals, you might implement this challenge differently.
I recommend keeping your reward money in a separatehigh-yield savings account.
Then promise to pay yourself back 5% to treat yourself for hitting your goal.
The whole family went out for pizza whenever they paid off $1,000 of debt.
Soon, the kids were asking how they could help pay down more debt.
Expert tip:You may want to budget for your “treat” amount.
Break larger savings goals into smaller milestones.
But I also find shopping fun, and I don’t think it’s inherently bad.
I walk around local shops on my designated shopping day, usually on Monday afternoons after my toughest workdays.
This schedule curbs my impulsive shopping throughout the week and gives me something to look forward to.
Building room into my budget for fun shopping keeps me on track to hit larger money goals.
If you struggle with overspending like I did, this challenge may help you, too.
So go out and crush your money milestones, but remember to treat yourself.
I know I will.
