By Giana
The 1% Challenge
requires you to save 1% more of your take-home income then you already do, and
increase your savings by 1% each month to ease you into saving. Arrange this
amount to be taken out with an automatic transfer so it is like you never had
to money in the first place. This money should also be in a safe place where
you can’t easily access it. The idea behind the 1% challenge is to make savings
simple and easy so you don’t have to do any work. Allowing you to progress in incremental steps
so it is effortless.
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After-Tax Income
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One Percent
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$2000 /mo
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$20
|
|
$3000 /mo
|
$30
|
|
$4000 /mo
|
$40
|
|
$5000 /mo
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$50
|
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$10000 /mo
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$100
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$20000 /mo
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$200
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The author Paula
Pant says to cut things like orange juice, turn down the thermostat, get a
cheaper cell phone plan, use Netflix instead of cable and get the cheapest car
insurance policy, but some people are already doing these things and don’t have
anything else to cut out. Her article doesn’t
apply to all cases. It is catered towards people who don’t know how to save
money or have a spending problem. Also it would be more helpful if Paula
said specifically where to save (such as a tax free savings account or a no
charge debit account), or how to setup an automatic transfer.
