The 100 Envelope Challenge is a savings challenge where you can save $5,050 over 100 days (or any chosen time frame), depending on how you complete it. Here’s how it works and how the total savings are calculated:
How the 100 Envelope Challenge Works:
- Label 100 Envelopes: You number 100 envelopes from 1 to 100.
- Pick an Envelope Daily: Each day (or week, depending on your pace), you pick one envelope at random.
- Deposit the Amount on the Envelope: You place cash in the envelope equal to the number on the envelope. For example, if you pick envelope #25, you place $25 in that envelope.
- Repeat Until All Envelopes Are Filled: Continue the challenge until all 100 envelopes are filled.
Total Savings Calculation:
- The total amount of money saved is the sum of all numbers from 1 to 100.
So, by the end of the challenge, you will have saved $5,050.
Variations:
- Pace: You can do this daily, weekly, or according to your budget and timeline.
- Modify the Amount: If saving larger amounts is difficult, you can try a smaller version with 50 envelopes (saving $1 to $50), which would give you a total of $1,275.
This challenge is a fun way to consistently save money and have a clear goal of saving a substantial amount by the end!