100 Envelope Problem (with Free Printable!)

What would you do with $5,050? Test an unique locale off of your journey bucket record? Dive into your curiosity about investing? Free your self of bank card debt? Put a hefty downpayment on a automotive? Bask within the consolation of getting a candy little emergency fund in your financial savings account? The probabilities are limitless, however there’s some actual alternative to attain your monetary targets!

There are quite a lot of tempting choices obtainable when you might have a pleasant nest egg put aside, however constructing the nest is the difficult half. Saving cash often isn’t practically as a lot enjoyable as non-essential spending, however the 100 Envelope Problem places a novel twist on plumping up your piggy financial institution with some additional money.

Would you relatively watch than learn? Study extra in regards to the money stuffing saving problem on Heard it From Hannah

What’s the 100 Envelope Problem?

The 100 Envelope Cash Saving Problem (also referred to as the Money Stuffing Saving Problem) is a enjoyable private finance trick that’s been going viral on TikTok and past.

It’s only a approach to save cash, actually, however the methodology used makes it extra like a recreation. Right here’s the way it’s carried out:

Step One:

Purchase 100 Envelopes (This half value Hannah $10.49, for the file.)

Step Two:

Label every envelope with a quantity between one and 100.

Step Three:

Shuffle/combine/rearrange your envelopes and toss all of them right into a shoebox. Or an Amazon field. No matter form of field.

Step 4:

Draw two random envelopes from the field in the beginning of every week. That quantity on the entrance? That’s the greenback quantity you’re going to stay inside and you’ve got all week to do it. Perhaps you’ll simply take that amount of money out of your checking account, or possibly you’ll work somewhat more durable to scale back your bills by that quantity for the week (bye-bye, Dominos, hiya DiGiornos), or maybe you’ll publish stuff you don’t want on Fb Market—make “discovering” the cash a part of the enjoyable.

Step 5:

When you’ve crammed that week’s envelopes, coloration in a coin on YNAB’s free 100 Envelope Problem Printable Tracker. (You may additionally create a 1-100 guidelines on a sheet of paper in case you are averse to useful and lovely printable worksheets. Or in case your printer is uncooperative; it occurs.)

Obtain the 100 Envelope Problem Printable Tracker under:

Step Six:

Place your full money envelopes in a second field, envelope, secure, or underwear drawer.

Step Seven:

Proceed every week. On the finish of the problem, you’ll have 50 crammed envelopes containing a grand whole of $5,050. That’s a pleasant sum of money!

Ideas for making the 100 Envelope Problem Work

Now, clearly, some weeks are going to be simpler than others. When you pull out envelope quantity 92 and 99, you would possibly surprise why you ever thought this was a good suggestion. And also you would possibly make an “uh-oh” face and drop one again into the field so as to select one other one, like Hannah does within the video. Nobody will know. Until you make a video of your self doing that.

But when your luck runs the opposite approach and also you pull two straightforward quantities, think about going into “professional mode” and pull a 3rd envelope, should you can.

Additionally, this problem has you ending the problem in 50 weeks when carried out as deliberate. Since there are 52 weeks in a 12 months, you might have two weeks of wiggle room—you would put an envelope again within the field on every week the place you may’t fill it, or take every week off for trip. It’s okay to make this a 52-week cash problem as a substitute!

No Envelope Problem Variation

Now, I do know a few of you might be on the market considering, “I don’t wish to cope with weekly journeys to the ATM or shopping for a bunch of envelopes.” (I do know that since you are my folks. This plan would final two weeks at greatest for me, as-is.) However that doesn’t imply that you simply don’t wish to avoid wasting extra cash. Listed below are two methods to do that digitally by utilizing a budgeting app like YNAB:

Choice 1: Create a class group known as “100 Envelope Financial savings Problem” after which create 100 classes labeled one by means of 100.

(Don’t fear, you may collapse the classes utilizing the arrow subsequent to the class group title.)

Label 100 slips of paper with numbers on them and choose two every week to determine which of your digital “envelopes” to assign with the corresponding amount of money. When you’re afraid that you simply’ll dip into your financial savings, “disguise” your class when you fund it by clicking on the class title and deciding on “disguise.”

Choice 2: When you want a extra minimalist method, you may create one “Financial savings Plan Problem” class and set a $5,050 financial savings objective with a due date 50 weeks out and use slips of paper to determine how a lot to assign to your class every week.

The draw back right here is that you’ll have to ignore the reminder to avoid wasting “x” quantity per 30 days to succeed in your goal since your financial savings quantities will probably be inconsistent.

Irrespective of the way you make it occur, an additional $5,050 is some huge cash and honing your financial savings habits is at all times an awesome thought. When you’re in search of extra problem concepts that can assist enhance your monetary state of affairs, try our Extra Cash Problem. It’s solely 30 days, there aren’t any envelopes concerned, and it’s free.

And when you’re on a roll with constructing higher cash habits, think about giving YNAB a strive for 34 free days! There’s no dedication or bank card concerned, and it’s an effective way to carry extra consciousness to your spending and saving habits.