Thrifty Thinking - Microsaving

 With inflation at a high, saving money may seem like an impossible task to some. Fortunately, there are methods to save small incremental amounts of money, which over time will begin to add up - this trend is dubbed as ‘microsaving.'

TikTok has seen a rise in popularity of financial and budgeting influencers across the platform, as well as viral budgeting trends, challenges and hacks. The hashtag #moneysavingtips has received a staggering 958.7 million views and #moneysaving challenge has been viewed 19.6 million times.

 

With the growing popularity of everyday people turning to TikTok as their source for saving tips and tricks, trends expert Nick Drewe from Wethrift has provided a round up of the top microsaving hacks that are attracting attention online.

• Envelope Saving Challenge

With a whopping 104.3 million views the #envelopesavingchallenge hashtag is one of the most popular savings hacks on TikTok right now. 

 

The viral challenge sees users getting 100 envelopes and labelling them from 1 - 100. On day one of the challenge, they will add $1 to envelope 1, on the second day $2 to envelope 2, $3 on day 3 and so on. 

 

Despite the challenge focusing on 100 envelopes, many people are opting for a smaller number in line with their own personal budgets, as the original challenge is designed to save participants $5,000 over 100 days. 

 

• Last Digit Hack

Another money saving hack that is circulating online is the last digit challenge. At the end of each day, check your bank balance and add the last digit to your savings account. 

 

For example, if your bank balance is $1,756, add $6 or 6 cents to your savings account depending on your own personal budget. By repeating this process on a daily basis, the money in your savings will soon begin to add up.

 

• The Round-Up Hack

Another clever microsavings hack is the round up challenge. This involves rounding all purchases up to the nearest full number, and adding the difference to your savings. For example, if you were to spend $5.75 on your lunch, you would round this up $6 and transfer the 25 cents to your savings account. Over time, adding the difference to your savings from all of your purchases will soon increase without the need to transfer significant amounts. 

 

• 52 Week Savings Challenge

This hack involves adding increasing amounts of money to your savings each week. On week 1, you will add $1, $2 on week 2, $3 on week 3, and so on until you reach a full year. 

 

If you commit fully to the challenge, you should have saved $1,378 over the course of the 52 weeks. And with 1.3 million views on the TikTok hashtag #52weekmoneychallenge, it seems that many people are utilising this popular saving method. 

 

• No Spend Week Challenge

The #nospendweek hashtag has received 1.6 million views on TikTok - this hack is where you commit to a week of only spending on essentials such as groceries and travel to and from work. 

 

No spending should take place on any leisure activities or non-essential items, and is designed to encourage more mindful spending. 

 

From cutting out day-to-day expenses on things such as takeaways or going to a bar after work, you can assess how much you have saved at the end of the week. 

 

Post courtesy of: https://www.wethrift.com/target