Money challenges are strategic, engaging ways to improve financial habits, curb unnecessary spending, and boost savings.

When approached with discipline and consistency, these challenges can transform financial behavior over the long term.

1. No-Spend Challenge

A popular way to boost savings and break the cycle of impulsive purchases is the no-spend challenge. This involves avoiding all non-essential spending for a set period, typically 30 days. The focus is on purchasing only the essentials, like rent, utilities, and groceries. This approach helps build awareness of spending habits and highlights unnecessary expenses such as dining out, entertainment, and shopping.

To make this challenge more sustainable, it's advisable to restrict specific categories, rather than completely eliminating all discretionary purchases. For instance, avoiding spending on dining out or entertainment, but allowing a small budget for emergencies or unavoidable costs. Track every dollar you don't spend and move it to a dedicated savings account to reinforce the habit.

2. Round-Up Savings Challenge

The round-up challenge is straightforward but powerful. Every purchase is rounded up to the nearest dollar, and the difference is automatically transferred into a savings account. For example, a $23.50 purchase would transfer $0.50 into savings. Over time, these small, consistent deposits accumulate significantly without feeling burdensome.

3. The 52-Week Savings Challenge

One of the most structured and proven challenges is the 52-week savings plan. It involves gradually increasing the amount saved each week. Starting with a modest sum, such as $1 the first week, and increasing by $1 weekly, means the weekly savings goal becomes larger as weeks progress, culminating in saving $1,378 by the end of the year.

This challenge promotes discipline and teaches patience, illustrating how consistent small contributions grow into a substantial nest egg. It's adaptable; individuals can start with a higher or lower initial amount based on their income and goals, fostering a sense of achievement and control over finances.

4. The Sell and Save Challenge

Decluttering the home and converting unused or unwanted items into cash offers both immediate and long-term benefits. This challenge encourages selling things like clothes, gadgets, furniture, or collectibles online or through garage sales. The proceeds are then funneled into savings or investment accounts.

5. The Digital Detox and Expense Reduction Challenge

Reducing digital expenses such as subscriptions, online shopping, or streaming platforms is an often-overlooked but impactful challenge. Committing to cancel or pause digital subscriptions for a month can save hundreds annually. Coupled with limiting online impulse purchases by setting spending limits or waiting periods before buying, this challenge directly cuts down unnecessary expenditures.

Annamaria Lusardi, an economist, said that automating small, regular transfers and simplifying choices increases the odds of saving consistently.

Together, these five challenges—no-spend, round-up savings, the 52-week plan, sell-and-save, and digital-detox—are practical and adaptable. Commit to one or two to start, measure your results, and automate transfers so your progress compounds over time.