A money-saving challenge went viral on TikTok and other social media platforms with many users claiming that it helped them save a large amount of cash in a short amount of time.
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The 100 envelope challenge is a way to save $5,050 in 100 days, as previously reported by GOBanking Rates. To do the challenge, label 100 envelopes with the numbers 1 to 100. Each day, pick an envelope and put the amount of money written on the envelope inside. Not only is this a good way to start saving before the holiday season, but it’s also a fun savings tool to help you reach your financial goals. It’s simple and straightforward, but can you do it?
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Collect 100 envelopes. They can be of any size or color but make sure the bills can easily fit inside.
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Grab a pen or marker and label each envelope from 1 to 100. This is the dollar amount going into each envelope.
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Store the envelopes in a box. There’s also a 100-envelope challenge kit available through Amazon, Kind Frugal reports, which includes the envelopes, a storage box, a space to write down your saving goal and a chart for tracking.
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Pick an envelope at random every day.
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Look at the number written on the envelope and put that amount of cash inside. If you draw a 10, then put $10 inside the envelope.
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Keep track of your progress every day.
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TikTok user @baddiesandbudgets saved $20,000 in 2021 by doing savings challenges and side hustles. If you can’t afford to fill an envelope every day, she advises filling a few every paycheck.
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This article originally appeared on GOBankingRates.com: TikTok’s 100 Envelope Challenge Helps You Save Over $5,000 in 100 Days – Can You Do It?