What’s a biweekly money-saving challenge?

According to the Consumer Financial Protection Bureau’s 2022 “Emergency Savings and Financial Security” report, 39% of Americans have less than a month of expenses saved for emergencies.

It may be because so many Americans are finding it challenging to save that there’s been an interest in “savings challenges,” some of which have gone viral on social media.

What’s a savings challenge, in a nutshell? A savings challenge is a structured but often fun approach to saving money that entails following specific goals or guidelines over a set period. Challenges vary in style, like saving a certain amount weekly, following a “no-spend” rule for specific days, or gradually increasing how much you save monthly.

One savings challenge that may be helpful to learn more about is the biweekly money-saving challenge. Let’s go over the ins and outs of a biweekly money-saving challenge so you can see if you want to try it.

How does a biweekly money-saving challenge work?

With a biweekly money-saving challenge, the goal is to set aside a certain amount of money every other week toward your savings. Some people who set out to do a biweekly money-saving challenge are working to save toward a particular goal, while others are just trying to save more. If you commit to this challenge for a year, you’ll set aside money towards savings 26 times.

Why you may want to consider the biweekly money-saving challenge

You may want to consider trying a biweekly money challenge if you’re just starting in your savings journey. Saving a certain amount every other week versus saving every week (or on another cadence) will allow you to ease into this new habit.

If you get paid biweekly, as many people do, it may be easier to save based on when you get paid, which may be another advantage, depending on your situation.

While the term “challenge” may appear daunting, know it’s simply a strategy to help you build a savings habit. Participating in this kind of challenge may help you build towards specific saving goals, such as building an emergency fund, saving for a home, a car, future travel, or any other financial goals you may have.

How to start a biweekly money-saving challenge

If you’re unsure how to start a biweekly money-saving challenge, know there’s no standard rules regarding how much you should save. The amount you choose to save biweekly and how you should save is up to you. Here are a few general steps you may consider if you’re figuring out how to get started.

1. Decide how much you want to save biweekly

Whether you want to start by saving $50 every other week or $500, it may be helpful to figure out the exact amount you wish to save biweekly. If you’re working towards saving for a particular goal (like a summer vacation), you might want to decide how much to save biweekly by dividing the amount you want to save by the number of weeks you have to save for the goal.

You may decide to increase the amount you’re saving as you progress through the challenge. You may also need to save less than you initially aimed to at certain points if financial needs come up along the way. Still, having an amount in mind to save biweekly may be a helpful starting point.

2. Create a savings schedule

Consider planning biweekly contributions on paydays or specific days to stay consistent. This may be a helpful way to make sure you’re sticking to the challenge.

3. Keep track of your progress

It may be helpful to review your progress every few months to see how you’re tracking towards your initial goals.

After you’ve made some progress saving, you may decide to increase the amount you’re contributing, for instance. Or, if you’ve been saving towards a specific goal, such as your emergency fund, and hit your goal, you may decide to contribute towards another savings goal. Making a habit of re-evaluating your progress may be helpful in this challenge.

4. Celebrate the small wins

Building a savings habit isn’t always easy, especially if you’ve never done it. That’s why acknowledging milestones – like reaching halfway to a savings goal or saving biweekly for six months straight – may help motivate you.

Final thoughts

A savings challenge is one of many ways you can strengthen your savings muscle. Other strategies like cutting down on unnecessary expenses and increasing your income, are other ways to build financial stability.