The money-saving challenge which could save you…

The money-saving challenge which could save you hundreds in 2023

Many Brits all across the country are likely still recovering from the spending pains of Christmas as well as the worsening cost of living crisis.

Because of this, many will be looking for different avenues on how they can cut costs and save as much money as possible, which could help to prepare them for next Christmas. In the face of this, a new trend of money-saving challenges has been preached by different people.

However, it can be hard to decide which of these many challenges is right for you and your financial circumstances. Fortunately, due to the variety of these challenges, you can pick and choose which ones you feel will work best for you.

Here is a breakdown of some of the most popular money-saving challenges being circulated online right now...

1p challenge

The 1p challenge became popular after it was formerly promoted by money-saving expert Martin Lewis. The challenge has one very simple rule to follow; on the first day you put away 1p, then 2p on the second - adding an extra penny on each consecutive day.

If you do this from January 1, you could save up to £667.95 alone. Martin previously told viewers on the ITV Martin Lewis Money Show in 2021: "There’s a big savings community out there who do this, it’s called the 1p Challenge.

"Basically, you save a penny on the first day of the year in a jar or piggy bank, 2p on the second, 3p on the third and keep going throughout the year - by the last day of December you’re saving £3.65, so that would give you £667. 95 in total.”

5p challenge

The 5p challenge can be seen as the more extreme version of the 1p challenge and follows a similar set of rules. However, instead of putting away an extra penny each consecutive day, you put away 5p.

Because you're stacking away more money each day, you will ultimately save up much more money than with the 1p challenge. One mum on TikTok boasted that you could save up to £3,339.75 if you did this challenge for a whole year.

'No spend January' challenge

While the 'no spend January' challenge only last for one month, it can feel a bit more extreme than the previous challenges. To take part in the challenge, al yo have to do is cut out as much non-essential spending as possible for the whole of January.

This means only spending money on rent or mortgages, bills, food, shopping, essential transport, emergencies, and medication. Therefore, you would have to cut out any splurges such as takeaway, eating out, shopping, drinks out, furniture, and tickets for days out.

However, one mum said that you could save roughly £600 in one month by strictly following this challenge.

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