Using The Biweekly Savings Challenge To Build Up An Emergency Fund

Let Idaho Title Loans, Inc. tell you all about building your savings using the fun and creative biweekly savings challenge. It’s a way to gradually develop your financial discipline and saving habits for goals like an emergency fund!

In this quick article, you’ll learn how this savings challenge works, how it can help, and what to do if your emergency fund isn’t enough!

How Does The Biweekly Savings Challenge Work?

You’ve probably heard of many different savings challenges by now and perhaps tried a few of them for yourself. Well, the biweekly savings challenge is unique because it works a little differently than others.

Simply put, this challenge gets you to save money every week. But the ‘biweekly’ part in that name comes from how you’ll increase the amount you save every two weeks.

In other words, you’ll save a certain amount for the first two weeks before raising the amount for the next two weeks. Then, you’ll raise and repeat as time goes on.

Here’s a simplified demonstration of what your savings amounts might look like for this challenge:

• Week 1: Save $5 a week
• Week 2: Save $5 a week
• Week 3: Save $7 a week (increase by $2)
• Week 4: Save $7 a week
• Week 5: Save $9 a week (increase by another $2)
• Week 6: Save $9 a week
• Week 7: Save $11 a week (increase by yet another $2)
• Week 8: Save $11 a week

Start small with an easily managed amount like $5. Then, work your way up to more significant savings with time!

Why Do People Do Savings Challenges?

Some people might find saving challenges a waste of time and effort, preferring to save their money the old-fashioned way. While that might work well for them, many people are looking for more fun and creative ways to build their saving habits.

Here are 5 reasons people pursue challenges like the biweekly savings challenge and how it can benefit you.

1. Helps Achieve Goals

First, people take on savings challenges to help achieve their financial goals in interesting ways. A common example is to build an emergency fund with enough money to cover 3-6 months of regular expenses.

2. Trains Financial Discipline

Saving biweekly also helps people train their financial discipline. People find it easier to stay consistent and disciplined when saving money through an engaging challenge like this.

As time passes, they also develop the discipline to leave their savings untouched. That means you can trust yourself to not use your emergency savings to make non-critical payments.

3. Builds New Habits

Sticking with a savings challenge also helps you build a long-term saving habit. While your current goal is to build an emergency fund, your habit can carry over to other financial goals as well.

4. Adds Motivation

Sticking with a challenge can also be a great way to give yourself more motivation. While saving money the usual way might be boring for you, something like the biweekly savings challenge could keep things interesting enough to retain your motivation for the long run.

5. Maintains Accountability

Last but not least, sticking with this challenge, or even another challenge, helps you maintain accountability. That’s especially true if you do the challenge with your friends, who will let you know when you’re falling behind.

What If My Emergency Fund Isn’t Enough?

Building up your savings for emergencies can be quite exciting when it’s done through a challenge. Still, it’ll take some time before that account is fully funded with enough to get you over a financial hurdle.

So, what happens if you experience a crisis and your emergency savings fund isn’t enough? Here are 3 things you can do:

• Reassess needs: Take the time to carefully review your emergency budget to see where you require money and where you can cut back.
• Liquidate assets: You can help cover emergency costs by liquidating some assets you own, like jewelry or other valuables.
• Borrow: Simultaneously, you can borrow emergency money through a finance option like a title loan. That enables you to access up to $15,000 using your car’s lien-free title as collateral.

Borrowing money through a title loan can help you get the money you need quickly and easily to cover your emergency costs. Doing so will also help protect whatever progress you’ve made in your biweekly savings so you can complete it as intended.

Get Emergency Money Now!

Building an emergency fund takes time and dedication, but you can make it easier by using the biweekly savings challenge. Start by saving a comfortable amount weekly. Then, increase how much you save every two weeks to develop your habit and saving disciplines.

Should you encounter an emergency in the meantime, remember that Idaho Title Loans, Inc. is here to help! Cover your emergency costs by taking out a title loan, starting with submitting the short online request form with your information. A representative will call you soon after to help with the rest!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.