The 365 day money saving challenge - a simple way to build a savings habit

Fancy ending the year with a tidy little pot of cash? The 365 day money saving challenge is as straightforward as it sounds: save £1 a day for a year.

That’s £365 by the time you’re nursing your New Year’s Day brew. No gimmicks here, just a simple way to get into the habit of saving.

What is the 365 day money challenge?

The clue’s in the name. You put aside £1 every day for 365 days. Doesn’t sound like much, does it? But by the end of the year, you’ll have a nice little buffer. Enough for Christmas extras, a weekend away, or just peace of mind knowing you’ve got something tucked away.

Why it works

Ever read Atomic Habits? It’s a popular self-development book on building habits that stick. In it, the author, James Clear says, “Success is the product of daily habits—not once-in-a-lifetime transformations.”

He focuses on small, consistent actions which build momentum over time. His philosophy is all about setting simple, manageable goals you’ll actually stick to.

This challenge fits because:

• it’s simple - no mental gymnastics, £1 a day is clear and concrete
• it’s visible - whether you use a digital pot or a mason jar, you’ll see progress which is motivating
• it’s rewarding - watching your pot grow gives you a little dopamine hit and your brain loves that

Clear says, “Habits are the compound interest of self-improvement.” Saving £1 a day might not feel life-changing, but it adds up over time.

How to do it

• Automate it: Set up a standing order with your bank. £7 a week into a savings pot—job done.
• Go old school: Grab a jar or piggy bank. Chuck in a quid every day. It’s oddly satisfying watching it fill up.
• Catch-up days: Missed a few? No drama. Top up when you remember.

Tips to stick with it

• Make it obvious: If you’re going old school, keep your jar somewhere you’ll see it. Visibility = reminder.
• Pair it with a habit: Drop your quid in after your morning brew. Habit stacking works wonders.
• Track your progress: Tick off days on a calendar or use a savings app. Seeing progress keeps you motivated.

Want to keep it interesting? Check out these variations.

If you search "365 day money challenge", you'll find lots of different ways to do the same thing - save consistently for 365 days. A popular one doing the rounds now is the 1p challenge, where you save 1p on day 1, 2p on day 2...and 365p on day 365. You end up with around £668 if you stick to it.

Other options include saving £1 on Monday, £2 on Tuesday, £3 on Wednesday and so forth up until you save £7 on Sunday. The challenge resets the following Monday, and if you stick to it for a year, you'd be saving £28 a week and you'd end up with £1,456 just in tiem for January. This is a good option as well, especially if you've got a bit more cash to spare.

We personally like the £1 a day for 365 days challenge, because it's as straightforward as it gets, and you know exactly how much you'll need to put away every day. There's no increments towards the end of the year when life tends to get expensive. It's a nice starter challenge, basically. But you can always ramp things up with one of the other variations the following year (or even mid-year) if this one's a little too easy for you.

This is your challenge so you can tweak it however you like. Here are a few ideas to make our preferred version a little different.

• Boost on payday: Feeling flush? Make it a rule that you drop in an extra £10 on payday. Future you will be chuffed.
• Up the ante: £2 a day doubles your stash to £730. £5 a day? That’s £1,825—now we’re talking.
• Start small, grow big: Begin with £1, then increase as you go if you feel like you can save more. Like levelling up in a game.

Ultimately, it’s not about the amount; it’s about building the habit. Still, it’ll be a nice little extra to look forward to at the end of the year.

Is the 365 day money saving challenge right for you?

The 365 day money saving challenge is an easy way to build a savings habit and give yourself a nice buffer after the festive period. You know how everyone’s usually skint in January and desperate for payday to come? That won’t be you, because you’ll have an extra £365 next year (at least) if you stick to it.

That said, it’s not a magic fix for all your money problems. It won’t replace proper budgeting and it’s not going to build you an emergency pot (maybe just the start of one). But it will do what it’s designed to do; help you start a savings habit you can grow in the new year.