Money saving tips: £5 savings challenge could help you save £6,890 by end of 2023 | Personal Finance | Finance

Many people will want to spend their money more wisely in 2023, tightening their belts after Christmas spending. However, the real challenge comes with saving without a specific goal in mind.

Having the intention to save, whether this is for a holiday, new car, or simply an emergency fund, can help Britons stay disciplined.

There are various money saving challenges to try, but one could help people to amass thousands by this time next year.

Savings challenges can vary with how much a person would like to put aside, but one popular option is the £5 savings challenge.

Each week, Britons adopting this challenge should put some money into their savings account.

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Once week 52 is reached, people will be transferring £260 into their dedicated savings account.

However, as they have been increasing the amount they are transferring each week, the total saving will be nearly £7,000 – specifically £6,890.

By the end of December, savers who have stuck to this challenge should have thousands of pounds put aside for their specific goal.

Of course, this can be difficult for those who do not have this kind of money to put away each week.

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However, they should be aware this is unlikely to benefit from the security a bank or building society account can provide.

FSCS-backed accounts offer protection up to £85,000 per person, per financial institution.

As a result, this may be something people want to consider.

Regardless of the method of saving, the challenge could help those who struggle to get motivated to put money aside. 

The £5 challenge is often considered as a slow and steady way to save money as it builds up savings over time. 

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