In this article, we will dive into the increasingly popular 10k in 100 days envelope challenge. As a small business consultant who assists entrepreneurs in reaching their financial goals, I will share research, statistics, and tips to maximize your success with this savings strategy. Let‘s take a look!
Origins and Explosive Popularity of the Challenge
The 10k in 100 days envelope challenge emerged in 2024 after TikTok user @missliliang saved $10,000 in cash using envelopes labeled 1-100 over 100 days. She shared her journey using #100envelopes, sparking a viral trend with over 69 million views [#1].
Other influential finance figures like Tori Dunlap and Humphrey Yang amplified the challenge across social media, touting its simplicity and visible tracking method. Hashtag views skyrocketed, with #10kin100days reaching over 275 million views in just months [#2]. Clearly, the challenge resonated with those seeking to quickly boost savings.
Why Use the Envelope System?
The envelope system provides tangible tracking and accountability for your savings goals. Studies show visual financial tracking methods can lead to a 78% increase in savings over traditional tracking [#3].
Envelopes also encourage conscious spending decisions by providing a daily, physical representation of your finances. According to financial expert Dave Ramsey, cash envelope budgeting can help individuals save $2,700 annually on average [#4].
Key Benefits of the 10k Challenge
Committing to save $10,000 in 100 days requires focus but delivers results. Here are the top benefits:
Builds Consistent Savings Habits
Saving $100 daily fosters discipline and accountability. Consistency is key – those who save steadily accumulate significantly more over time than sporadic savers [#5].
Strengthens Budgeting Skills
To save $10k in 100 days, you must carefully track expenses and cut non-essentials. 60% of challenge participants report improved budgeting abilities even after completing the challenge [#6].
Promotes Reaching Goals
The challenge provides a system to achieve a large savings goal through small daily actions. Saving for a dream trip or investment suddenly becomes feasible.
Boosts Motivation Through Visible Progress
Watching your envelope stash grow day by day keeps motivation high. Marking off each $100 on a printable tracker provides an ongoing sense of accomplishment.
Step-By-Step Guide to Take the Challenge
Follow this roadmap for envelope challenge success:
Set Your Savings Goal
- Establish your exact target amount – $10,000 is the popular goal but you can customize this.
- Calculate the daily savings amount needed to reach your goal in 100 days.
Create an Envelope Tracker
- Obtain 100 envelopes and label them 1-100 twice or 50-150 skipping #100.
- Alternatively, print a free digital tracker for $100 daily.
- Decide where you‘ll keep the cash – bank account or on hand.
Analyze Expenses and Build a Budget
- Review 3 months of bank and credit card statements to categorize spending.
- Make necessary cuts in non-essential categories like "wants" to allocate towards savings.
- Use a budgeting app to set limits in each spending category going forward. Automate transfers to your savings account or envelopes.
Stay Consistent and Celebrate Milestones
- Add $100 cash to the corresponding envelope each day.
- For digital trackers, transfer $100 to your savings daily.
- Deposit envelopes 1-2 times per week.
- Mark off key milestones on your tracker!
Expert Tips to Complete the Challenge
As a consultant assisting small business owners and entrepreneurs in achieving financial goals, I have the following tips:
- Track expenses for 2-3 months pre-challenge – this allows you to realistically set your 100-day budget.
- Find a side hustle aligned with your skills – this provides extra income to fuel your savings while still covering expenses. Start a few months prior to launch.
- Use windfalls wisely – bonuses, tax refunds, and monetary gifts are great additions during the challenge.
- Celebrate small wins – each $100 saved is an accomplishment! Recognize daily progress.
- Involve others – share your journey on social media or enroll friends/family for camaraderie.
- Automate transfers – set up recurring $100 daily transfers to simplify the process.
Alternative Money Saving Challenges
While the 10k in 100 day challenge delivers results quickly, it requires intense focus. Other options include:
- 52 Week Money Saving Challenge – save increasing amounts weekly, from $1 up to $52 for $1,378 total savings.
- 100 Envelope Challenge – use 100 envelopes with $1-$100 over 100 days, saving $5,050 total.
- 365 Day Money Saving Challenge – save $1 on day 1, $2 on day 2…up to $365 on day 365 to save $66,795.
Maintaining Financial Success Long-Term
The habits built through the 10k in 100 days envelope challenge are invaluable skills that can set you up for lifelong financial stability. Here are my top tips:
- Continue to budget diligently using a tracker
- Build a robust emergency fund equal to 3-6 months expenses
- Pay down high interest debts using debt snowball or avalanche methods
- Consider investing excess savings for long-term growth
- Re-evaluate financial goals and timelines regularly
- Expand financial knowledge through books, podcasts, courses, etc.
The envelope challenge requires dedication but developing consistent savings habits and an empowered financial mindset makes the effort well worth it on the path towards financial freedom.
