What is the 100-envelope savings challenge?

Core Concept - The 100-envelope savings challenge is a popular method to gamify saving money, allowing participants to save a total of $5,050 over 100 days [1][3]. Group 1: Challenge Overview - The challenge involves using 100 envelopes labeled from 1 to 100, where each envelope corresponds to a specific amount of cash to be saved [2]. - Participants can either follow a numerical order or choose envelopes randomly, ultimately leading to the same total savings of $5,050 [3]. Group 2: Motivation and Strategy - The challenge is designed to make saving feel more manageable by breaking down a large goal into smaller daily tasks, which can enhance motivation and consistency [4]. - Some participants enhance their experience by using decorative envelopes or money binders, which can provide a sense of accomplishment as they see their envelopes fill up [4]. Group 3: Tips for Success - A thorough budget review is essential to ensure sufficient cash flow for the challenge, with suggestions to cut back on temporary expenses if necessary [5]. - Participants are encouraged to set their own pace if completing the challenge in 100 days is unrealistic, with options to save multiple envelopes per week [5]. - Strategic cash management is advised, including scheduling ATM trips to avoid excessive fees and ensuring cash availability for daily deposits [5]. - Security measures should be considered for storing cash, with recommendations to use a safe or locked drawer to prevent loss [5]. - To maximize savings, participants might consider transferring funds to a high-yield savings account instead of keeping cash, as this can earn interest and protect against inflation [6]. - Celebrating milestones, such as reaching every $1,000 saved, can help maintain motivation throughout the challenge [6].