What We Really Think Of The Envelope Challenge

When it comes to this time of year…whether you consider it year-end or just the beginning, Finances can be an overwhelming topic. Most of us are guilty of overspending during the Black Friday/Christmas/Boxing Day season. With January looming, we want to quickly recover our “losses” but extreme savings goals/challenges could lead to a bigger defeat than the W we were hoping to add to our New Year column.

There are numerous Envelope challenges from $1000 in 30 Days, to $5000 in 100 Days, and who doesn’t want that extra cash in their back pocket?!

Problem: It’s NOT one size fits all.

For many Millennials + Gen Z inflation is hitting their bank accounts HARD. Before attacking their TikTok Starbucks drinks, the majority are hustling hard working multiple jobs or banking OT to cover their bills and payments. Challenging to save $1000 in 30 days is essentially challenging people to save up to HALF of their salary… not thinking about how to rent/mortgage could be anywhere between $650-$1500/month.

It doesn’t take complicated math to realize this = UNATTAINABLE

Not to fear we’re not going to leave you hanging without a Solution!

Personal Finance Expert, Sam Gerber said “this is just another money management or budgeting technique”, so to help we wanted to share 5 customizable saving habits.

1. LOOK AT YOUR FINANCES! it may feel scary but it’s worth knowing the reality rather than having a figment of your imagination run wild in your brain causing unnecessary stress and no strategy.

2. STOP THE MONEY LEAKS, we’re all guilty of signing up for programs, subscriptions, or courses that we no longer make use of. From gym memberships to streaming services take a look and see what you’re “making money on” (usage>cost) and what you’re losing money one (cost>usage). Not to mention, let’s all make a pact to stop buying things we really don’t need. Remember, less money spent on those things just means more money in your pocket for things you really do need (AND want, because wants ARE okay!)

3. BUDGETish sounds cliche, but it’s important to track where you’re spending money. We’re not saying stop spending, but start noticing how your finances reflect your lifestyle. If you’re a goal setter, now is a good time to pull out that list of resolutions/goals and notice where things align and where they don’t. If you have a goal to travel to 3 countries in 2023...perhaps it’s time to go on a shopping freeze until you’ve paid for all the trip expenses, or you decide you want to do 1 trip all out (including a new wardrobe) or if you want to buy a new spin membership you cut out those “quick trips through the drive-thru” and put those extra pennies towards the classes you want.

4. START INVESTING, these envelope challenges create a push to extreme cut and gain mentality, and just like any workout as soon as you’ve achieved the goal old patterns slip back in. It’s better to show up consistently in smaller amounts and allow the gains to grow over time, just like the gym 30 minutes every day is better than 60 mins once a month. With investing tools these days you can save smaller amounts and buy individual stocks or fractions stocks allowing for a lower barrier of entry, which is good news for you!

5. ASK AN EXPERT, going to a bank can be an intimidating task which is why Sam has created the Financial Liberation Academy, a 6-month program to help you enhance your finances, including her signature Financial Health Audit. With no ties to any bank, she’s there to help you find the best-fit road for you…and while envelopes may be involved, it’s designed for your particular lifestyle, goals, and income!