100 Envelope Challenge - Featured Image
01.07.2022

100 Envelope Challenge – Here’s What You Need to Know

by Milos Djordjevic

Anyone who has ever tried to save money knows that it can be a daunting task. But what if there was a way to make saving a little bit easier and more fun? That’s where the 100 envelope challenge comes in. 

Designed to help you gradually build up your savings, this challenge is perfect for anyone looking to get their finances in order. But how does it work and who can do it? Stick around to find out.

What Is the 100-Day Envelope Challenge and Should You Do It?

1. What Is the 100 Envelope Challenge?

This money-saving challenge is a great way to jump-start your savings. So how does the 100 envelope challenge work?

You start by labeling 100 envelopes with numbers from 1 to 100. Then, you mix the envelopes and put them in a pail or basket.

Draw an envelope each day and put the amount of money inside that corresponds to the number on it. You should do this for 100 days until all the envelopes are filled.

So, if you pick an envelope numbered 35, you have to put $35 inside and seal it. The next day, pick another envelope with a different number and set aside that amount of money.

After 100 days, you’ll be richer by $5,050.

This envelope savings challenge is perfect for starting a savings fund, because it forces you to be mindful of your spending and makes it easy to see how much you can save by setting a little aside. Plus, it’s a fun way to keep track of your progress.

2. Who Can Do the 100-Day Money Challenge?

The 100-day money challenge is an amazing method to lay aside some cash. Here’s who it’s perfect for:

  • Anyone who has extra cash at the end of a month after paying for essentials.
  • People who already save money, but want to challenge themselves.
  • People who have difficulties setting a savings goal and reaching it.

This envelope trick to save money is simple to follow yet difficult to persist in. It requires discipline and commitment to be successful. Three months is quite a long period. You’ll often be tempted to give up and indulge yourself. 

But if you focus on how much you can save with the challenge—more than $5,000 in just three months—you can stay motivated for the entire period.

3. Who Should Not Do the Envelope-Saving Challenge?

Saving money with the envelope challenge is not for everyone. Here are the people this challenge isn’t recommended for:

  • People struggling to make ends meet because of a tight budget, not reckless spending.
  • Those who are in the middle of a major life change that impacts finances, like getting married, moving to a new city, or having a baby.
  • People without a permanent job and whose income changes constantly.
  • People who have difficulty controlling their spending because of external reasons, like being parents or caretakers.

Gathering money through the envelope challenge will not be helpful and might even do more harm than good in these situations. It’s better to focus on creating a budget and finding ways to save money in the long run rather than trying to put away a certain amount of cash each day.

The same goes for people who are in the middle of a major life change—you probably have enough on your plate without worrying about saving money. And if you’re unemployed or your income is unstable, it’s better to focus on finding a stable job rather than trying to put money aside.

In any case, be sure to consider your situation before starting the challenge.

4. What Is the 200 Envelope Challenge?

The 200-day envelope money challenge is similar to the 100-day one, but it’s a lot easier and more realistic. You can save more than $5,000 in 200 days rather than 100, making this saving method more cost-effective and budget-friendly.

Instead of 100 envelopes, you should make 200 envelopes and label them with numbers 1–50, repeating the sequence four times. In the end, you’ll have four envelopes for $1, four for $2, and so on.

The rest of the process is the same as with the 100 envelope savings challenge. After numbering your envelopes, put them in a box and pick one each day. The amount written on the front of your envelope is what you have to save for that day.

By the end of the challenge, you’ll successfully save $5,100.

Parting Words

The 100-day money challenge is a great way to save up, and it’s perfect for people who are looking for a simple yet effective saving method. It’s also perfect for those who want to be more mindful of their spending and see how much they can save each month.

If you’re looking for a fun and easy way to save money, the envelopes challenge is one of the best ways to achieve that. Just consider your circumstances before getting started.