Save over £667 by end of year starting 1p savings challenge this weekend
The end of the month means payday has finally arrived for millions of people across the country and could provide the motivation to start a simple savings challenge that could earn them nearly £700 by the end of the year. By following the '1p savings challenge', you could build up a handy savings pot worth £667.95 by December 31, 2025.
However, even if you only saved until the end of November, you would still have put away an impressive £559.45, which could take the pressure off buying presents at Christmas. While most people started the challenge on New Year’s Day by putting a penny aside, the easy way to catch up is to set £4.96 aside on January 31, ready to start the daily incentive on Saturday, February 1.
READ MORE: Martin Lewis shares simple way to track down lost pension pots worth up to £104,000
READ MORE: UK Government confirms no plans to force shops to accept cash payments
The ‘1p challenge’ is probably one of the simplest and best-known ways to build your money pot for winter 2025. It’s also a great way to get into the habit of saving every day by starting small and focusing on the end result.
The only downside to this savings plan is that the amounts increase as the year goes on. It might be worthwhile knowing the amounts due per month and setting the money aside as soon as you get paid.
1p challenge monthly savings plan
Month | Set aside |
January | £4.96 |
February | £12.74 |
March | £23.25 |
April | £31.65 |
May | £42.16 |
June | £49.95 |
July | £61.07 |
August | £70.68 |
September | £77.55 |
October | £89.59 |
November | £95.85 |
December | £108.50 |
Total saved | £667.95 |
How the penny challenge works
To start the savings challenge, you just have to put away a penny a day (at first), which gradually grows to pounds as the months roll by so at the end of the year, you will have saved enough money to start 2026 with a few hundred pounds tucked away.
12-month daily savings plan
Follow this penny savings plan:
Day 1: Put in £0.01
Day 2: Put in £0.02
Day 3: Put in £0.03
Day 4: Put in £0.04
Day 5: Put in £0.05
Day 6: Put in £0.06
Day 7: Put in £0.07
Day 8: Put in £0.08
Day 9: Put in £0.09
Day 10: Put in £0.10
Day 11: Put in £0.11
From Day 100 add:
Day 100: Put in £1.00
Day 101: Put in £1.01
Day 102: Put in £1.02
Double the amount on day 200:
Day 200: Put in £2.00
Day 201: Put in £2.01
Day 202: Put in £2.02
Continue until day 300, then add:
Day 300: Put in £3.00
Day 301: Put in £3.01
Day 302: Put in £3.02
Flip it round to suit your financial situation
Alternatively, you could reverse the order in which you save - if you have the cash to spare and think that will work better for you.
This would mean setting aside £108.50 in January, which gradually decreases as the year goes on ending with a December payment of £4.96. MoneySavingExpert.com has a full monthly guide to this which you can find here.
