The 100 Envelope Challenge is a trend that originated and gained traction primarily on social media. When done correctly, you can save just over $5,000 in 100 days.
The 100 Envelope Challenge is a savings challenge that helps speed-run saving by making you save $5,050 in 100 days — if you stick with it.
To do the challenge, you need some cash and 100 envelopes. Next, label each envelope 1 through 100. Then, for 100 consecutive days, add cash to an envelope that equals its number. For example, you would add $1 to the envelope marked ‘one’ and $10 to the envelope labeled ‘10.’
There are a few ways to tackle this challenge, such as going in order, starting from the first day: $1 in the ‘one’ envelope, $2 in the ‘two’ envelope and so on. You could also bounce around, such as doing envelope 100 first and then doing a smaller amount the next day. Whichever order you choose, the goal is to save something each day for 100 days straight.
Physical envelopes appear to be the most common way people are doing the challenge, since it offers a simple way to track savings. There are also many influencers on social media selling envelope books with sleeves for cash and a calendar to check off each completed day.
However, you can do the challenge without physical envelopes or a special book.
You can track contributions with pen and paper and simply send the contributions to your preferred savings account each month. For example, you could write out each day and draw a checkmark next to the completed days:
Pro saving tip
Whether you're completing a savings challenge or just trying to build an emergency fund, consider placing your funds in a high-yield savings account where they can grow passively. To save even more, look for an account with no balance requirements, monthly fees or messy APY tiers to keep life simple.
— Bethany Hickey, Editor, Banking.
The challenge requires saving $5,050 in just over three months, which is a bit of a time crunch and can be challenging for many people.
If you go in numerical order, the first 10 days of the challenge require saving just $55, which is fairly manageable. But in the final days of the challenge, following numerical order, you must save $1,045 in just 10 days.
An easier approach to the challenge is going out of order based on how much you can save on a given day. For example, you could fill the $100 envelope on your payday and save smaller amounts on non-paydays.
If following the 100 Envelope Challenge to the letter (pun intended) isn’t doable for you, you can modify the challenge to something more feasible or consider other money-saving strategies.
Narrow down top savings accounts by monthly fees, APYs and perks. For a closer comparison, tick the Compare box on multiple options to compare them side by side.
The 100 Envelope Challenge can be great for those looking to build discipline and savings quickly. If you struggle to save, this challenge might help you build the habit and a nice chunk of cash within a short period.
However, saving $5,050 in 100 days is a lot of money. If that’s way over budget for you, consider modifying the challenge to fit your budget better, such as stopping at day 50 or turning the daily challenge into a weekly one.
Check out our savings guides and accounts for more savings guidance and top accounts to store your funds.
The Upgrade high-yield savings account offers one of the highest APYs available. The only catch is you need to have a $1,000 balance to earn.
A sinking fund is money that you set aside for an expected upcoming expense, such as Christmas, vacations or car maintenance.
A money market account offers check writing abilities and a higher interest rate, while a savings account has lower deposit requirements.
The LendingClub High-Yield Savings account has one of the highest APYs available, no monthly fees and an optional ATM card.
Deciding whether one, the other or both make the most sense for your financial situation.
The banks that offer the best vacation and travel savings accounts are SoFi, Upgrade, Bread, Bask, Varo, Marcus, Barclays and more.
If you struggle to save, you could benefit from a savings account or CD that won’t allow you to withdraw funds.
Uninterrupted compound interest accounts pay interest on your initial balance and the interest you continually earn if you don’t withdraw.
How to choose the best savings account for your situation.
Some of the top banks with the highest interest rates are Customers Bank, TAB Bank, Cloud, UFB, Bread, Bask, Upgrade, Varo and more.