How to do 100 envelope challenge

If you’ve ever struggled to build a savings habit, you’re not alone. Putting aside money can be challenging for many reasons, and sometimes you need a strategy to kick your saving efforts into high gear. Enter the 100 envelope challenge. This viral TikTok trend has been gaining traction among people looking to build better financial habits. The concept of this savings challenge is simple: fill 100 envelopes with varying amounts of money over a set period of time. At the end of the challenge, you’ll have socked away a significant amount of money for your financial goals.

Whether you’re saving for a specific need, working toward a fun vacation or purchase, or building an emergency fund, this challenge can help you reach your aspirations. Taking on the 100 envelope saving challenge can also be an energizing way to improve your financial discipline. 

Learn how to launch your 100 envelope challenge:

• Step-by-step guide
• Tips for success
• Earning interest 

How does the 100 envelope challenge work?

The structure of the 100 envelope challenge is straightforward. Label 100 envelopes with different amounts of money and put them all into a container. Then draw one envelope each day or week and put the specified amount into the envelope. 

Step 1: Gather and label your envelopes

Grab 100 envelopes and label each with a number from 1 to 100. Feel free to get creative by decorating your envelopes with stickers or colorful drawings. Whatever makes the challenge feel most fun. 

Step 2: Shuffle and store your envelopes

Mix up your envelopes and place them into a container. This is another chance to be creative; you might decorate a shoe box or pick an attractive vase for your container. 

Step 3: Choose your savings cadence

Decide how often you’ll set aside money in an envelope. If your budget allows for it, you might decide to fill an envelope every day. You could also go with once a week or every other week if that’s more reasonable for your finances. 

Step 4: Pick an envelope and fill it daily or weekly

Reach into your container and draw out an envelope. The number on the envelope is the amount of money you should place inside it. For example, you’ll put $7 into envelope #7, $43 into envelope #43, and so on.

Step 5: Repeat until all envelopes are full

Once you’ve put the specified amount of money into each envelope, your 100 envelope challenge is complete. It’s time to give yourself a high-five for your efforts.

Tips for success in the 100 envelope saving challenge

Starting the 100 envelope saving challenge is the first step; completing it requires strategy and perseverance. Having a challenge makes the process of saving into a game, which can be more appealing. But that doesn’t change the fact that it can be hard to save money for many reasons. You can increase your chances of success with the 100 envelope challenge by adopting strategies that work for your personal inclinations and circumstances.  

Set clear goals

Before you dive into your 100 envelope saving challenge, get clear on what’s motivating you. Setting specific savings goals based on your financial priorities gives you a tangible outcome to work toward; keeping that end goal in mind can stoke your motivation. For instance, if you’re saving for a specific purchase, keep a photo of the item you want to buy on your phone and glance at it when you’re tempted to skip an envelope. If you’re dreaming of a vacation, consider making a vision board of your destination to inspire you to stick with the challenge. Even if you’re saving for something less tangible, be as specific as you can. For example, if your goal is to build an emergency fund, you could make a list of the unplanned expenses it could be used for and write out why having a safety net will give you peace of mind.  

Track your progress

Watching your savings mount can provide validation and encouragement as you move through your 100 envelope challenge. Keep track of your savings progress on a regular basis. You could check off your saving habit on a calendar each day you fill an envelope, create a chart that reflects the money you’ve accumulated, and check your total savings balance every time you fill each envelope. You might want to take a look at your progress any time you’re tempted to spend the money you’ve saved or take a break from your savings habit to refocus yourself on your goal. 

Stay accountable

100 days or weeks can feel like a long time to stick with a new habit, so look for ways to keep yourself accountable. You might want to practice loud budgeting, in which you share your progress with others or join a group of like-minded savers online. Or you could look for someone else who wants to try the 100 envelope saving challenge and become savings buddies. 

Avoid spending temptation

If you find yourself tempted to spend the money you’ve saved, implement techniques to keep yourself accountable to your commitment. If you’re saving cash, place your filled envelopes in a locked box to make it harder to grab a handful of money when you’re going out. And if you’re storing your savings in a bank account, keep it in a savings account instead of your checking account so you don’t dip into your money. Develop tactics to avoid impulse buying so in-the-moment urges don’t derail your progress. 

Be flexible 

You don’t have to be perfect to succeed at the 100 envelope challenge. Life happens, and you might miss a day or week. When that happens, aim to double up on your challenge the following day or week by drawing two envelopes instead of one. And if unexpected expenses pop up that make it impossible to save, don’t be afraid to briefly pause your challenge.

You can also adjust the 100 envelope saving challenge to fit your personal financial situation. The cadence is up to you: if saving money every day or week will pinch your budget, you might line up your savings cadence with your paydays instead. You can even change the amounts; you could go with intervals of 50 cents instead of $1, so that envelope #1 would be for 50 cents and envelope #100 would be for $50. 

Put your savings to work with interest

If you want to super-charge your savings progress, put your money to work. By storing your savings in an interest-bearing account, it goes to work earning interest, boosting your results without you having to do any additional work. You can choose an account to keep your money in throughout the 100 envelope saving challenge; if you prefer to save physical cash in your envelopes, you can deposit your money into an account when you reach the end of the challenge.  

• High-yield savings account: These accounts offer higher interest rates than traditional savings accounts, making your money grow faster.
• Money market accounts: This type of account tends to earn higher interest, plus come with check-writing privileges so it’s easier to spend your money when the time comes.
• Certificates of deposit (CDs): If you want to deposit a lump sum after your challenge is complete, a CD offers higher interest rates for locking in a set amount of money for a predetermined amount of time.  
• Low-risk investments: Consider low-risk investment vehicles, like certain types of stocks and bonds, if you want to invest the money from your 100 envelope saving challenge.

How much money will you save with the 100 envelope challenge?

The 100 envelope saving challenge can be a fun and effective way to build better financial habits. If you follow the method as described, you’ll wind up with $5,050 when you’re finished. At that point, you have a lot of options: spend your savings on a specific goal or put it to work making more money by investing $5,000 for even longer-term aspirations. 

At the end of your 100 envelope saving challenge, you won’t just have a nice sum of money; you’ll also have begun a savings habit that you can keep going into the future. The long-term benefits of building a savings habit and achieving financial goals are well worth the effort.

Learn about more money saving challenges like:

• 52 week savings challenge
• biweekly money savings challenge

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