100 Envelope Problem (with Free Printable!)

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

There are lots of tempting choices obtainable when you may have a pleasant nest egg put aside, however constructing the nest is the difficult half. Saving cash normally 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 slightly watch than learn? Be taught extra concerning the money stuffing saving problem on Heard it From Hannah

What’s the 100 Envelope Problem?

The 100 Envelope Cash Saving Problem (also called 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 technique used makes it extra like a recreation. Right here’s the way it’s executed:

Step One:

Purchase 100 Envelopes (This half price Hannah $10.49, for the report.)

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 sort of field.

Step 4:

Draw two random envelopes from the field at the start 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 perhaps you’ll work a bit more durable to cut back your bills by that quantity for the week (bye-bye, Dominos, good day DiGiornos), or maybe you’ll put up 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 possibly can additionally create a 1-100 guidelines on a sheet of paper if you’re averse to useful and lovely printable worksheets. Or in case your printer is uncooperative; it occurs.)

Obtain the 100 Envelope Problem Printable Tracker beneath:

Step Six:

Place your full money envelopes in a second field, envelope, protected, 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 marvel 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 to be able to select one other one, like Hannah does within the video. Nobody will know. Except you make a video of your self doing that.

But when your luck runs the opposite approach and also you pull two straightforward quantities, take into account going into “knowledgeable mode” and pull a 3rd envelope, for those who can.

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

No Envelope Problem Variation

Now, I do know a few of you’re on the market pondering, “I don’t need to take care of weekly journeys to the ATM or shopping for a bunch of envelopes.” (I do know that since you are my individuals. This plan would final two weeks at greatest for me, as-is.) However that doesn’t imply that you simply don’t need to avoid wasting extra cash. Listed below are two methods to do that digitally through the use of 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’ll be able to collapse the classes utilizing the arrow subsequent to the class group identify.)

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, “conceal” your class when you fund it by clicking on the class identify and choosing “conceal.”

Choice 2: When you desire a extra minimalist method, you’ll be able to create one “Financial savings Plan Problem” class and set a $5,050 financial savings aim 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 monthly to achieve your goal since your financial savings quantities might 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 all the time an awesome concept. When you’re searching for extra problem concepts that may assist enhance your monetary state of affairs, take a look at our Extra Cash Problem. It’s solely 30 days, there aren’t any envelopes concerned, and it’s free.

And whilst you’re on a roll with constructing higher cash habits, take into account giving YNAB a attempt 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.