Feel like you can’t save anything?

Start with one percent of your income, which is Php 10 for every Php 1,000 that you earn.

Just curious, have you taken the widely talked about Filipino version of the 52-week savings challenge and were able to finish it? The challenge requires saving Php 50 in the first week of the year and increasing it by Php 50 every week so that by the last week of the year you will need to save Phph 2,600. Basically, it requires saving specific amounts regardless of how much you earn. Sounds easy? Not really.

In the last 4 months of the 52-week savings challenge, you are to save somewhere between Php 7,000 to Php 10,000 a month. So, if you are earning Php 20,000 to Php 25,000 monthly, this represents 30% to 50% of your income. So, unless you earn more than Php 20,000 , I find it a bit unrealistic and unsustainable.

Here’s my challenge to you…

If you normally save nothing, starting today, save one percent of your earnings.

During the 2nd month, increase your savings by another one percent. On the 3rd month, add an additional one percent. Within a year, you’ll be saving an extra 12 percent of your income.

Example 1: Income = Php 20,000 / month; Regular Savings = Php 0

MONTH	REGULAR SAVINGS	MONTHLY SAVINGS (month% x income)	TOTAL SAVINGS FOR THE MONTH
TOTAL AMOUNT SAVED FOR THE YEAR			Php 15,600
January	0	1% x 20k = Php 200	Php 200
February	0	2% x 20k = Php 400	Php 400
March	0	3% x 20k = Php 600	Php 600
April	0	4% x 20k = Php 800	Php 800
May	0	5% x 20k = Php 1000	Php 1000
June	0	6% x 20k = Php 1200	Php 1200
July	0	7% x 20k = Php 1400	Php 1400
August	0	8% x 20k = Php 1600	Php 1600
September	0	9% x 20k = Php 1800	Php 1800
October	0	10% x 20k = Php 2000	Php 2000
November	0	11% x 20k = Php 2200	Php 2200
December	0	12% x 20k = Php 2400	Php 2400

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If you are already saving regularly, the challenge will allow you to gradually increase the amount you are setting aside. If you already save 5 percent of your income, save 6 percent. If you currently save 10 percent, save 11. OR if you are regularly saving a fixed amount, save an additional 1 percent more on top of your savings.

Example 2: Income = Php 20,000 / month; Regular Savings = Php 1,000

MONTH	REGULAR SAVINGS	ADDITIONAL MONTHLY SAVINGS (month % x income)	TOTAL SAVINGS FOR THE MONTH
TOTAL AMOUNT SAVED FOR THE YEAR			Php 27600
January	1000	1% X 20k = Php 200	Php 1200
February	1000	2% X 20k = Php 400	Php 1400
March	1000	3% X 20k = Php 600	Php 1600
April	1000	4% X 20k = Php 800	Php 1800
May	1000	5% X 20k = Php 1000	Php 2000
June	1000	6% X 20k = Php 1200	Php 2200
July	1000	7% X 20k = Php 1400	Php 2400
August	1000	8% X 20k = Php 1600	Php 2600
September	1000	9% X 20k = Php 1800	Php 2800
October	1000	10% X 20k = Php 2000	Php 3000
November	1000	11% X 20k = Php 2200	Php 3200
December	1000	12% X 20k = Php 2400	Php 3400

For easy reference, here is a table showing the required monthly savings for different levels of monthly income.

MONTH				MONTHLY INCOME (in PHP)
TOTAL SAVINGS	Php 7800	Php 11700	Php 15600	Php 19500	Php 23400	Php 27300	Php 31200	Php 35100	Php 39000
	10000	15000	20000	25000	30000	35000	40000	45000	50000
January	100	150	200	250	300	350	400	450	500
February	200	300	400	500	600	700	800	900	1000
March	300	450	600	750	900	1050	1200	1350	1500
April	400	600	800	1000	1200	1400	1600	1800	2000
May	500	750	1000	1250	1500	1750	2000	2250	2500
June	600	900	1200	1500	1800	2100	2400	2700	3000
July	700	1050	1400	1750	2100	2450	2800	3150	3500
August	800	1200	1600	2000	2400	2800	3200	3600	4000
September	900	1350	1800	2250	2700	3150	3600	4050	4500
October	1000	1500	2000	2500	3000	3500	4000	4500	5000
November	1100	1650	2200	2750	3300	3850	4400	4950	5500
December	1200	1800	2400	3000	3600	4200	4800	5400	6000

The One Percent Challenge allows you to develop the habit of saving gradually. The amount you save depends on your income. So even if you earn a little, it wouldn’t be difficult.

Take the one percent challenge to save money. Jumping from saving nothing to saving 12 percent overnight is hard. The most effective way to do this is one step at a time — or, in this case, one percent at a time.