The simple challenge involves daily putting an amount aside, which increases by 1p each day. Financial journalist Martin Lewis has previously backed the scheme.
If a person takes up the challenge at the start of 2023, starting with a saving of 1p, they will have put aside more than £660 by the end of the year.
The challenge also has the advantage of teaching a person the discipline of saving each day as well, with the option to physically put the money into a jar or piggy bank each day, so a person can see the total grow.
A person can also put their daily savings into an online bank or building society account, ensuring their funds are secure.
Mr Lewis previously told viewers on the ITV Martin Lewis Money Show: “There’s a big savings community out there who do this, it’s called the 1p Challenge.
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“Basically, you save a penny on the first day of the year in a jar or piggy bank, 2p on the second, 3p on the third and keep going throughout the year – by the last day of December you’re saving £3.65, so that would give you £667.95 in total.”
If a person starts on New Year’s Day and consistently chips in their daily savings, then by the last day of December, they will have saved a grand total of £667.95.
People who want to start the challenge later in the year can also begin by putting aside the total so far and then continuing with the challenge.
For example, a person starting on January 3 could move across 6p, which includes the previous two days’ savings, and then on January 4 put aside 4p.
On reaching day 100, a person will be challenged to put aside £1 in savings, and then £2 on day 200.
Savers also have the option to do the challenge in reverse, starting with £3.65 and decreasing their daily saving by 1p each day.
Molly Mileham-Chappell, author of the MoneySavingExpert blog, said the 1p Challenge can be a fun way to increase a person’s savings.
She said: “Part of the fun is that the challenge can take a fair bit of discipline. Even if you don’t stick to it to a tee, what’s really important here is that you’re thinking about saving and trying to set some money aside.
“You can make the challenge work for you – if you don’t use cash often, see if you can set the money aside using your online banking and vice versa. But remember, it’s usually best to pay off debts before you begin to save.”
For those who want to tot up even more savings in 2023, they may want to consider the £5 savings challenge.
This involves a person starting with saving £5 a week, and then adding another £5 to their savings for the next week, increasing to £10, and so on.
This is a more difficult feat to keep up, by week 26, a saver will have to move across £130 into their dedicated savings account.
But this challenge provides attractive savings, as by the halfway point a person will have saved £1,755 in total.
By the end of the challenge, a person will have saved nearly £7,000 – specifically £6,890.