Taking the #52WeekChallenge 2022 For The First Time? Read This

2022 will be the 7th year since I launched #52WeekChallenge on this blog. Hundreds of thousands of people have read posts and tweets about the #52WeekChallenge, but the most amazing thing is that every year when we announce it on Twitter, we encounter people who have never tried the challenge and therefore do not know where to start. This is awesome, and it keeps me motivated to challenge us to save!

This is a guide for the 2022 newbies, and folk who tried it once years back and would like to make 2022 their #52WeekChallenge year.

What is the #52WeekChallenge?

This is an incremental weekly savings challenge where you start off with an amount, and every week, you increase your savings target by that amount. The basic #52WeekChallenge starts off at KES 50 ( approximately US 5 cents), and every week the target increases by that amount such that by the 52nd week of the year, the savings target is KES 2,600. The chart below demonstrates how you grow from total savings of KES 50 on Week 1, to KES 68,900 by the end of the year. A good amount to spend on a short holiday, pay school fees, or get you started on that emergency fund.

You may customize the target depending on your goal by playing around with some numbers on the MoneyBox App, or this customizable Excel sheet. The beauty of using the app is that you are able to set up reminders, set up a fixed savings plan, track bulk savings etc. The app does not take deposits though, read on if you are wondering where to save your #52WeekChallenge cash.

Where will I save the cash?

This is entirely up to you, but I recommend to go with a savings option that is low-friction i.e. one that will not take much thinking or effort on your side. Since the #52WeekChallenge started, I have encouraged that folk start off with the M-Shwari Lock Savings account (in Kenya) or a mobile savings solution (Piggyvest in Nigeria for example), because a mobile solution will have all the features you need:

• It is right on our phones and we are ALWAYS on our phones. This means you do not need to do much to save for the week.
• It locks up the funds, and gives you a 48-hour withdrawal timeline, which means you won’t withdraw your savings on a whim.
• It allows you to set a target, and sends you reminders of how far along you are on your target. Just what we need.
• The money earns some interest. While the goal of the #52WeekChallenge is not to invest, but to accumulate funds that one may invest, a little extra cash does not hurt.

Other savings alternatives include setting up a standing order to a limited-withdrawals savings account, opening a money market account, or using a physical piggy bank.

What strategies can I use to fail-proof the challenge?

Many people who start the Challenge do not finish it for many reasons. There are however some tricks you can use to make sure you take it to the end:

• Set a motivating goal. The goal should not be to just save a certain amount, but should be linked to something you want to achieve this year. It could be your springboard to building a savings havit, a vacation, new computer, a deposit on a piece of land, or higher education. Higher education was my goal for the #52WeekChallenge 2018 edition, and last year I graduated with my Masters in Development Finance. Heck, it can even be a house!
• While you are still motivated, start from Week 52, and save the larger amounts first. This way, as the year goes by, the Challenge gets easier.
• Commit to save any unexpected income you receive until you meet your #52WeekChallenge goal.
• Link the #52WeekChallenge to a reward e.g committing to not go out on Friday evening unless you are up to date with your #52WeekChallenge savings.
• Do it as a community. I have had people join the Challenge with family members, colleagues, or even as an investment club. This builds accountability.
• Should life happen and you are compelled to withdraw your savings mid-challenge, do not consider this as failure. The money was available when you needed it, and this is what we are trying to accomplish. Start once more to build your savings either by completing the Challenge, or starting from Week 1.

I wish you all the best as you start off on this exciting journey. Remember to tweet me updates, and also follow the Money Reflections Instagram page for daily money reflections 🙂