The financial experts at Martin Lewis' MoneySavingExpert.com (MSE) have unveiled a straightforward and "relatively painless" method for Brits to accumulate a significant sum by the end of 2026. The strategy, known as the 1p savings challenge, could see savers amass a total of £667.95 by December 31st.
How the 1p Savings Challenge Works
This incremental savings plan is designed to be easy on your wallet. It involves increasing the amount you save by just one penny each day throughout the year. You begin by setting aside 1p on January 1st, followed by 2p on January 2nd, and 3p on January 3rd. This pattern continues every single day, meaning your daily saving amount grows slowly but steadily.
The MSE team emphasises that the challenge is flexible. If you miss a day or decide to begin later in January, you can easily catch up by depositing the sum of all the missed days. For instance, starting on January 5th would require a first deposit of 15p (1p+2p+3p+4p+5p). The following day, you would resume the normal sequence with a 6p saving.
Flexible Saving Methods and Digital Help
To keep track, MSE recommends using a downloadable chart that lists each daily amount. In terms of physically saving the money, you have several options. The traditional method of putting loose change in a jar works perfectly. Alternatively, you can use a digital banking app to make daily transfers.
For those who prefer not to deal with daily transactions, MSE suggests alternative approaches. "While it might defeat the object of it being a daily challenge, you could put away the month’s total in one go if you prefer," the experts note. Another popular method is to split the annual total into 12 equal monthly payments. Setting up a standing order for £55.67 per month will achieve the same goal, with a slight 9p bonus by year's end.
Customers of the digital bank Monzo can opt into an automated version of the challenge. For those with Extra, Perks, or Max accounts, new features allow you to "level up" the challenge by saving double or quadruple the daily amount from the start.
Other Savings Challenges to Consider
If the 1p challenge inspires you, MSE highlights other effective methods to build your savings pot. The straightforward £1 saving challenge involves saving £1 every day, resulting in £365 after a full year.
A more structured option is the Monday to Friday challenge. This starts with saving £1 on Monday, increasing by £1 each weekday (£2 Tuesday, £3 Wednesday, etc.), and taking weekends off. This method saves £15 per week, accumulating to a substantial £780 over the course of a year.
Adopting any of these disciplined saving strategies can provide a welcome financial buffer without causing significant strain on your daily budget. The key, as always, is to find a method that fits seamlessly into your lifestyle.
