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The secret to checking off goals like tasks on a to-do list is the ability to break the larger objective into small incremental steps. This same philosophy can be applied to saving money, too. Enter the 100-envelope savings challenge technique that will help you stash away $5,050 in just 100 days. This savings framework has helped thousands of people overcome savings difficulties by giving them a framework that helps them stay focused while avoiding the temptation of impulse purchases. Now is the perfect time to learn more about this incredible savings challenge and have enough money set aside for an incredible vacation, emergency fund, or a great start on a nest egg.
What Is the 100 Envelope Challenge?
The 100 envelope challenge is a money-saving challenge that will help you save over $5,000 in one hundred days. Label 100 envelopes with the numbers 1 to 100. Each day, pull one random envelope. Put the amount of money written on the envelope inside and seal it. When all envelopes are full, you’ll have $5,050.
Why Do the Challenge?
Do the 100-envelope challenge because it can be fun and motivate you to build a regular saving habit. If you complete the challenge, you’ll save a lot of money relatively quickly. You can use that money to start an emergency fund, pay off your debts, or take a vacation.
How to Do the Challenge
The 100-envelope challenge is an effective way to save money fast if you can stick to it. Here’s how to do it:
1. Gather 100 envelopes
To do the hundred-envelope challenge, you need a hundred envelopes. It doesn’t matter what color or size they are as long as cash fits in them and you can write on them. Letter-sized envelopes work perfectly. You can pick up a box of 100 cheap if you have none.
2. Number each envelope
Grab a pen or marker. Number each envelope from 1 to 100. The numbers represent the dollar amount that goes in each one.
3. Store the envelopes
Any shoe box or storage box will do. You could also pick up this 100-envelope challenge kit from Amazon, which includes the envelopes, a storage box, a spot to write your saving goal, and a 100-envelope challenge chart for tracking. Security might be a concern. I wouldn’t make what’s inside the box obvious or leave it somewhere it could be easily found. Consider a cash box, portable safe, or lock box since you will store thousands of dollars in cash. Shuffle the envelopes before you put them in the box. The fun and challenging part is picking a random amount to save every day. Leaving them in order defeats the purpose.
4. Pick one envelope at random every day
Randomly pull a single envelope out of the box each day. Don’t look before you draw, though. This envelope money-saving challenge’s random nature makes it exciting. Plus, if you complete it successfully, you’ll have over $5,000 saved.
5. Put the amount of cash equal to the value on the envelope inside the envelope
The number on the envelope determines how much cash goes inside it. For example, if you draw envelope number 5, you put $5 in the envelope. You can stash your cash envelopes in the box with your empty envelopes. If having a lot of envelopes with cash lying around makes you uncomfortable, take your envelopes to the bank once a week or when you reach a certain dollar threshold.
6. Keep track of your progress
Keeping track of your progress daily is a fun habit that keeps you focused. It could also provide more motivation to continue. If you don’t want the full envelope challenge kit, make your own challenge sheet in Excel or Google Sheets for tracking purposes. If a DIY 100 envelope challenge chart is not your style, you could download this printable tracker from Etsy for a couple of dollars: 100 Envelope Challenge Tracker.
Does the Challenge Work?
The 100-envelope challenge does work. You will save $5,050 if you’re able to complete the challenge. The hundred-envelope challenge is not easy, though. It requires you to save a random amount of money between $1 and $100 daily. Most people will find that hard, but there are easier variations.
How Does the Challenge Work?
The 100 envelope challenge involves labeling 100 envelopes numbered 1 through 100. Each day, you pick one envelope randomly and put in cash equal to the number on the envelope. When all 100 envelopes are full, you will have $5,050. It’s a fun but challenging way to save money quickly.
How Much Money Do You Save?
You’ll save $5,050 in 100 days with the 100-envelope challenge. You put a random amount of money between $1 and $100 in an envelope every day for 100 days. To start, label 100 envelopes 1 to 100. Each day, pull an envelope randomly and put in the amount of money equal to the number on the envelope.
Flaws With the 100 Envelope Money Challenge
As you can see, when you have to come up with anywhere between $1 and $100 daily, some days will be harder than others. You might have multiple days where you struggle to find the money to keep going with the challenge. Having to come up with hundreds of dollars in a single week might present a budgeting challenge, and you might not have enough spare cash available. If your bank balance isn’t where you want it to be and you’re having trouble saving money now, what happens when you pull a high-numbered envelope? Nobody who starts the challenge plans to quit, but it can get difficult fast. On days when you pull high-value envelopes, you might get frustrated with the challenge. Over the next 100 days, you might have to come up with $50 or more to put in your envelopes for several days. If that happens, you might feel like there’s no end to the challenge, so make sure to give yourself a break from time to time. Completing the challenge in 100 days might be unreasonable for some people. 100 days will seem like an extended period if you struggle to find the money to stay on course. If you have enough money to complete the challenge in 100 days, you might find a better use for the money. For example, you could get a month ahead on your bills, stash it in an IRA or separate savings account, pay off credit cards, put it in your emergency fund, or put it toward a down payment on a house instead of stuffing an envelope with a chunk of cash. Savings tricks and clever hacks might be helpful to get you started on building good money habits or getting rid of bad ones. But at the end of the day, the money you save from this 100-day challenge must come from your monthly income. It’s not an extra bundle of cash that appears out of nowhere simply because you use this method. Suppose you can free up thousands of dollars without blowing up your budget, using credit cards, or falling behind on your bills. In that case, the one hundred envelope challenge might encourage you to save money regularly, improve your budgeting skills, and find ways to put extra cash toward your financial goals. But you don’t need a difficult savings method to establish good money management habits, lower expenses, or meet your savings goals.
Pros and Cons of the Money-Saving Challenge
Here is a quick summary of the pros and cons so you can decide for yourself whether to take on the 100-day envelope challenge or pass:
| Pro | Con |
|---|---|
| You’ll save over $5,000 quickly | You might need to come up with hundreds of dollars to stay on track |
| You can reduce debt, start an emergency fund, or make a large purchase in cash | Your budget may not allow it without significant lifestyle changes |
| You build better money habits | You lose out on interest if you keep your savings in envelopes |
| The challenge adds an element of fun to saving money | Could cause financial and emotional stress |
100 Envelope Challenge Variations
One challenge variation you might find easier is to make it a weekly saving challenge rather than a daily one. Pull two envelopes per week instead of pulling one envelope per day. You’ll still have $5,050 in cash at the end, but two envelopes per week will take almost a year if you make it a weekly savings challenge. If a 50—or 52-week savings challenge is more your speed, go for it. If you feel 100 days is good, but coming up with the money is the problem, change the 100-day challenge money amount. Number the 100 envelopes 1-50 twice or 1-20 five times. Other variations include pulling an envelope or two every payday, extending the challenge to a little over six months by grabbing an envelope every other day, or simply labeling less than 100 envelopes. Do a 50-envelope challenge if that means you’ll stick with it. With these variations, you could be doing the challenge a lot longer, doing the challenge for less than 100 days, or saving less money. But these options might be more attainable than completing the 100-day money challenge. If the 100-day money-saving challenge goes from fun to stressing you out, try something else. Remember, the point is to put aside some money and get into the habit of saving regularly. The 100 envelope savings challenge isn’t supposed to make us feel bad, cause stress, or mess up our financial lives. It’s not worth trying some aggressive money-saving hack or new budgeting technique if it makes you miserable or worse off than when you started. All that said, you can also make it more difficult. If you want to try saving 10k in 100 days, you can double the amount written on the envelopes. Completing a $10,000 envelope challenge in 100 days is probably a tall order for most people, though.
Doing a Money Envelope Challenge Without Physical Envelopes
You don’t necessarily need to do the challenge with envelopes and actual cash. A tactile method is more helpful with sticking to it, but you might find it a pain. Or maybe you don’t have daily access to cash. Regardless of your reasons, you can turn it into a 100-day money challenge without envelopes. Pull an envelope daily, but use your banking app, online banking, or cash apps for automatic transfers. That way, you won’t have to keep a steady supply of cash handy.
Should I Do the Challenge?
You should do the 100-envelope challenge if you want to start saving money, and it won’t cause you any stress or burden. Putting money away for a rainy day or a financial goal is good. Building a savings habit is also good. The 100 envelope savings challenge can help, but it’s not easy. It’s not the budgeting hack or saving trick it’s often made out to be by video creators on TikTok. Saving $5,050 in 100 days isn’t a miracle money hack. It will be tough for many people to bank that kind of money quickly.
Are There Any Other Financial Challenges I Should Try Instead?
Money-saving challenges do make saving fun. And when you’re finding some fun in it, you’re more likely to stick with it. But you don’t have to do a 100-day envelope challenge. You can find another effective money challenge that will get you to save money regularly on your way toward financial freedom. Plenty of money challenges won’t be as tricky as the hundred-envelope challenge. You can do an easier 52-week money-saving challenge like the 365-day nickel savings challenge, a monthly savings challenge, or a 30-day challenge if a 100-day money-saving challenge feels too long. If you’re looking for a fun challenge you can do with your kids, try the Penny Savings Challenge. It’s another 52-week challenge you can start right now with one penny and a piggy bank. You can also do a spare change challenge, where you round up your purchases and transfer the difference into a deposit account or empty your pockets into a jar or piggy bank every night. If overspending is a problem or you want to eliminate bad spending habits, try a no-spend challenge. For the no-spend challenge, you pay your bills and buy only your bare necessities. You stop all discretionary spending for 30 days. Whatever you decide to do, set a saving goal, like paying off your high-interest debt or padding your vacation fund. Then, choose a daily or weekly money challenge that appeals to you. You don’t need clever money-saving hacks or to save cash by stuffing envelopes with money every day. It just has to be something you can stick to over time. Challenges are motivating, however, and they make saving more like a fun activity than a chore.
