This is how starting 1p challenge this weekend will save you more than £600 in 2022

This is how you can save more than £600 by doing the 1p challenge. (Credit: Shutterstock)
This is how you can save more than £600 by doing the 1p challenge. (Credit: Shutterstock)

Martin Lewis’ MoneySavingExpert website has revealed how beginning a new 1p challenge this weekend could set you up for saving in 2022.

The website has shared tips for the challenge which could see you save more than £600 by the end of the year.

This is how you can get involved.

What is the 1p challenge?

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As detailed on the website, the challenge comes from starting by saving 1p and increasing this value by one pence each day.

For example, you begin by saving 1p on 1 January, 2p on 2 January and so on.

It allows for gradual saving and the highest daily amount that you will put aside is only £3.65, to be contributed on 31 December 2022.

How much will I save from the 1p challenge?

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While it may seem like a small savings challenge, the results prove it for themselves.

Those taking part will save £670 per year, which increases if more people are adding to the pot.

Molly is one participant in the challenge who reaped the benefits of the savings made.

She said: “This year, I put my money where my mouth is and decided to complete the challenge alongside my boyfriend, adding both our challenge earnings to the same pot.

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“Transferring the full monthly amount each payday meant that by December 1 we’d saved up the exact amount needed to pay for our new carpets, in full.

“You can save £667.95/yr if you complete the challenge alone, which multiplied by two people taking part is £1335.90.”

How do I take part in the 1p challenge?

It’s simple to take part in the challenge if you are able to.

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If you are able to use internet banking, you can transfer the daily amount into a separate savings pot.

If you don’t use internet banking, you can use the tried and tested method of using a savings tin to save those pennies.

Additionally, if you would prefer, you could calculate the weekly or monthly total for the challenge and choose to save this as a lump sum rather than make contributions daily.