How Does The 100 Envelope Challenge Work | Save $5000

When I first started saving money their wasn’t anything I wouldn’t try. I tried the get piggy banks without an exit, the save 10% when you get paid, and they all had one thing in common. They worked and once I got the money, I would spend it as a reward. Its like going to the gym once a week and then having 6 cheat meals as rewards.

But however this challenge is the 100 envelope challenge, and it takes 100 days to complete. And you could save a little over $5000. And I’m going to tell you how it works, and why it works, and what to do with the money.

Chapters:
0:00 Intro
1:27 What Is The 100 Envelope Challenge & How It Works
6:53 Why It Works
9:09 My Twist On The Challenge
13:07 Outro

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1. How it Works and How long it Takes
- The idea is for you to get 100 envelopes and then label them from 1 – 100$
- And the goal is simple, you put the specific amount in each envelope until you get to 100
- Now the idea is that you can start today and be done 100 days also know as 3 months and 9 days ( which in my opinion is not that bad but its also a long time )

This reminds of something a lot of Hispanic people do ( my mom, uncles and family members do something called a San )
- And they get this piece paper with all these numbers and every week when they get paid they have circle a number and give that amount of money until they run out of numbers
- And at the end of the game, you get the amount of money, sometimes its 1000 or 5000 or even 10,000 depends on what you choose

For example:
- Its like one of those numbers sheet you got in kinder garden
- So you have 1-100 and 1-200 ( now the 1-100 gives you $5,050 and the 1-200 give you 20,100)
- So you would print out the paper and circle or cross the numbers you’ve done

Warning: on rushing the process
- This usually last the amount of numbers in days
- But some people might want to do it faster
- I think the best way to do it is ( to use the big numbers during good times and save the smaller numbers during bad times )

2. Why it works ( habit )
- Scientifically proving this actually makes sense
- According to James Clear the Author of Atomic habits, the best way to develop a habit is to start small and take incremental steps
- And according to common practice, its takes around 21 days to 66 days to build a habit and for you brain to really get use to saving money
- So because of those two factors this works very well

3. What to do with the Money
- It makes me sad, when I see someone work very hard to save this much money, and the only ideas they have is to go on vacation or something like that
- or they stop saving and before you know it fall back into their normal bad habits

So Here is my advice:
- I would put a twist on this challenge if you are in debt. Use the envelopes or the number sheet, and commit to paying that much money extra towards your debt ( that’s going to save you a lot of money in interest and finally get you out of debt )
- Second Twist: If you are debt free, you can use the envelope method to save for your 3-6 months emergency fund ( once you’re don’t put the money into a savings account
- Third: use the envelope method to start investing money and saving up for a down payment on a home ( once you start investing and buy your home, keep using it to pay extra towards the home and finish early )

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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