How a savings challenge can help build a nest egg in 2024

The new year is a great time to build a savings habit and savvy savers can start from just 1p and work towards a pot worth thousands of pounds by Christmas 2024.

Finding the right savings method "is not always easy", said MoneySavingExpert.

But everything is much easier when it is fun, explained the Skint Dad blog, and it's "exactly the same with saving money". A savings challenge helps you "get into a habit" of putting money aside.

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A savings challenge is a "great way" to get into the routine of putting your spare change aside, said The Sun, and the "right one" will depend on how much you want to save and what you can afford.

We round up some of the most popular savings challenges to kickstart your habit in 2024.

1p savings challenge

The 1p savings challenge is "pretty straightforward", said MoneySavingExpert. 

It starts with putting a penny away on New Year's Day, "plus a penny more each day", so 2p on 2 January and 3p on 3 January.

Savers usually contribute £3.65 on the final day but as 2024 is a leap year, an extra £3.66 is added, explained the financial website, meaning you'll have "saved a grand total of £671.61" by the start of 2025.

Monthly savings challenge

Another option is putting away an amount that increases each month.

This 12-month savings challenge encourages you to save one lump sum every month.

Savers start with £10, explained The Sun, and "gradually increase" how much is put aside every month by multiplying the month by 10, so £20 for the second month, February and £30 for the third month, March, and so on. 

You will have a savings pot worth £780 "sat in your account" if you do this for the whole year, added the news website. 

52-week savings challenge

The 52-week savings challenge is "super-simple", said NatWest. 

You start by putting away £1 in the first week and "gradually increase your savings by a pound a week". This could give you an extra £1,378 by the end of the year.

This challenge can "get a lot harder in the final weeks", warned the Skint Dad blog, as you are saving £202 a week by the final month.

£1,500 savings challenge

This is the "hardest to stick to", said Shawbrook Bank, but has big rewards as you could save £1,456 with this method.

It works by "increasing the amount you save each day for a week" and then restarting the next week, explained the lender. So you would save £1 on Monday, £2 on Tuesday, £3 on Wednesday "and so on", giving you £28 each week. 

It is a "more significant commitment" than the other challenges but could be combined with other resolutions such as "swapping your takeaway coffee for one made at home".

The fiver challenge

This challenge is the "most hardcore", said The Sun, but will leave you "rolling in it" if you succeed.

It is similar to the 52-week challenge but savers sticking to this programme will increase savings in multiples of £5 instead of £1 each week. 

With this method, you could save "an impressive £6,890 by the end of the year", added the Daily Mirror or even a sizeable £1,755 "if you make it halfway".