The 1% Money Saving Challenge and How To Do It

September 27, 2018

1%-Money-Saving-ChallengeOne of the many ways I am saving money this year is through the 1% Money Saving Challenge.


It is another saving hack I learned a year ago from one of my favorite personal finance blogger.


Money challenges are not that new to me. In 2016, I tried doing the 52-Week Money Challenge. A month or two after, I knew I was already a failure. I can’t seem to stick to the plan.


The only saving challenge I accomplished is The Invisible Money Challenge which I’ve been doing year after year after year. The last I did even garnered 80,000 views on YouTube which is crazy.


Saving money shouldn’t be a daunting task.


I realized after years of learning and growing a personal finance blog that it is the simplest habits and decisions we have that matters.


And today I’ll be sharing to you a simple money saving challenge, called 1% Money Saving Challenge.


The 1% Money Saving Challenge Explained


The 1% Money Saving Challenge was first introduced to me through Paula’s blog, Afford Anything.


She wrote a post called Take The One Percent Challenge and explained how the challenge is done.


If you normally save nothing, save one percent of your after-tax income every month.


“How much is that?”


Just drop the last two digits of your monthly income. That’s it.


During the second month of saving, increase your savings by another one percent. In Month #3, add an additional one percent.


Isn’t the technique brilliant?


Because you are adding a percent each month, you’ll be saving an extra 12 percent of your salary in a year.


Here’s a chart to show you how this 1% Money Saving Challenge work for someone who has Php 20,000 net income:




By just saving merely 1% of your income you will have a lot of money saved in a year.


That extra Php 15,600 can be used to fund a travel, invest, buy a term life insurance or your own emergency fund etc. This is an extra money anyway.


How I Save Using The 1% Money Saving Challenge


As mentioned in the intro, I started doing this for 2018. I made a simple table in a notebook similar to the table above to guide me as I save.


I already have a separate bank account under my payroll account so what I do is just transfer the amount needed after payday.


Putting it in a jar is not an option for me since there’s more money involved unlike the 20 Peso Ipon Challenge.


I’d also like to point out that I have other saving method for different goals. Example, every money I get from side hustle is automatically saved in my extra income fund aka opportunity fund. This is the money I use for opportunities that may come way such as travel.


Related Read: How I Organize My Money + Inside My Money Map


I mentioned in My 2018 Mid-Year Review that I am on track on this saving method and I am really happy about it. I am still debating whether to use the money or keep it for next year’s instead.



The 1% Money Challenge vs. The 52 Week Money Challenge


When I first read about the The 1% Money Challenge, I was ecstatic.


I find the plan easy to accomplish. Unlike the 52 Week Money Challenge, this one is based on a monthly scheme so it is way easier to achieve.


The 1% Money Challenge is also easier to track. You already know how much you need to save in a month by just dropping two zeroes. No need for weekly deposits, which let’s face it is tedious in our banking situation where you need to queue and wait for your number to be called.


Although, it is good how the 52 Week Money Challenge will make you Php 68,900 in the end. I mean if I just have the discipline to save Php 50 pesos on a weekly interval I will definitely try it again.


For now this, and the other saving methods I use will do.


Both challenges are good way to start saving money. You’ll learn to commit to a goal, to focus on the value of saving and to know how compound interest actually works. I think it would be a nice addition to a better you in the coming New Year.

Different Ways You Can Apply The 1% Money Challenge


1. Emergency


For sure you have seen this coming but yes, you can definitely use whatever money you’ll save after the challenge as a start-up emergency fund.


Emergencies happen. And these are situations that doesn’t necessarily involve you getting admitted to hospital. Other cases where this fund will be helpful are unexpected lay-off, sudden death of a family member, natural disaster or your phone got stolen and you need a replacement.


2. Travel


When did you last travel?


To travel is such a great goal, and something that could give a lifetime worth of happiness and memories especially when shared with the people you love.


I said yes to travel this year which still feels surreal. I went on a trip with my whole family to Eastern Samar last March. I also spent 4 days and 3 nights in Seoul, South Korea.


And before the year ends I have two more places to go to. Isn’t it amazing?


This 1% Money Saving Challenge could be the answer you’ve been waiting.


Related Read: How To Achieve Your Travel Goals In 3 Steps


3. Birthday


If you want to celebrate your birthday with a party without breaking the bank the why not save for it?


The amount may be too low but it is still good as a start, right? If you use 2% instead of 1%, then you can double the money you save.


You can also do this trick if you want to sponsor the special occasion of your loved one such as debut of your daughter or Golden Wedding Anniversary of your parents.


4. Debt Payment


Lastly, if you want to pay down some accumulating debt at once then the 1% Money Saving Challenge could be a good technique too.


Getting out of debt is one of the best financial move you can do in your life.


It promotes financial peace and security, more money to spend without guilt and improves your ability to save and invest.


The small savings you keep on a monthly basis can go a long way in reaching financial freedom.


Related Reads:

How to Get Rid of Debt and Reclaim Your Finances

Here’s a Strategy to Pay Debt Even with Low Salary


Tips in Doing the 1% Money Saving Challenge


Cut down on your spending

For the first few months of 2018 I’ve been very frugal when it comes to my food consumption.


My lunch is about Php 50 to Php 75 a day compared to last year when I spent Php 100 to Php 120.


I try as hard as I can to go out of the house at 6:30am so I can have a leisure time to walk the street going to the FX Terminal instead of paying Php 8 for the pedicab.


Another new thing is how I manage not to shop for any makeup. Last year was the very year I used less makeup than usual so it is nice that I save more money now unlike before where I can’t stop consuming new makeup.


The thing is you need to cut down on your spending and live as frugal as possible if you want to really save.


Make a list of your recurring expenses in a month and determine any item you can cut down like movie nights, dinners or subscription from magazine etc.


Define the end result

What will happen to the money that you will save for the whole duration of the 1% Money Saving Challenge?!


The answer will serve as your main motivator in the duration of the challenge.


Write down the end result and put it a place where you can always see it. Constant visualization helps in becoming a step closer to our goal.


Find an accountability partner

You can ask one of your sibling or a best friend and even your partner if he or she is open to the idea of 1%Money Saving Challenge.


As they say, two is better than one. Having an accountability partner will urge you to stay on track. You can remind each other once a month of payment is coming up.


You can also keep the money of your accountability partner and vice versa so that both of you won’t get enticed to spend.


Never miss a month

Focus on your goal and try your hardest not to miss a month in the 1% Money Saving Challenge.


Once you miss a month then you need to save twice the amount for the following month, thus a ripple effect on your budget for the months ahead.


Find a safe place to keep your savings

It is up to you where you will put the money you saved from doing the 1% Money Saving Challenge.


You can use an ordinary piggy bank or do as I do and have a separate bank account where you can easily transfer fund.


Just make sure where you are keeping your money is a safe place.


Know how to adjust your budget for your savings system

Since you are now doing the 1% Money Saving Challenge you need to adjust your budget according to how the monthly system goes.


Stay away from big unimportant expenses during –ber months where the amount you need to save for the challenge is higher. You can also use your bonus instead to pay for this.


At the end of the day, you can enjoy better savings with the little sacrifice you will do.


Final Notes from SavingsPinay


I hope the 1% Money Saving Challenge appeals to you. Let me know in the comment section below your thoughts about this saving challenge.

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Clariza Glino

Izza of SavingsPinay helps Filipinos bridge the financial literacy gap one content at a time by providing insights and tips on budgeting, saving, investing, side hustle and growing your net worth. Aside from this blog she also writes at, a beauty and lifestyle blog for frugal Pinays and manages,, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at

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