As the new year begins and the cost-of-living squeeze continues, a major UK building society has compiled a list of innovative money-saving challenges designed to help Britons build a financial buffer. Yorkshire Building Society has identified eight practical methods that could see savers accumulating thousands of pounds by the close of 2026.
Creative Challenges for Serious Savings
The proposed strategies range from simple daily penny collections to more structured weekly saving plans. The 5p money saving challenge is highlighted as a potential route to significant savings. This method involves starting by saving 5p on the first day, then increasing the amount by 5p each subsequent day. By the end of a full year, this disciplined approach can yield nearly £3,400. For those who prefer a different pace, the society suggests reversing the process, beginning with a £18.25 deposit and working down to 5p.
Another straightforward option is the 1p money saving challenge, where you put away £1 every day for a year, resulting in a tidy sum of £365. Setting up a standing order can automate this process, making it effortless to stick to the plan.
Structured Saving and Spending Cuts
For savers who thrive on structure, the 100-envelope challenge offers a tangible and engaging system. Participants take 100 envelopes, number them from 1 to 100, and each week randomly select two. The number on the envelope dictates how many pounds to place inside. After 50 weeks, this leads to a substantial £5,050 saved. A less intense version using envelopes numbered 1 to 25 is also recommended.
The no-spend challenge focuses on curbing expenditure rather than active saving. It involves choosing a period—be it a weekend, a week, or a month—to strictly avoid spending on any non-essential items, directing funds only towards absolute necessities like food and bills.
Weekly and Percentage-Based Plans
The £1,500 challenge, more precisely known as the £1,456 challenge, operates on a weekly cycle. You save £1 on Monday, £2 on Tuesday, and so on up to £7 on Sunday. Repeating this pattern for 52 weeks results in the £1,456 total.
A percentage-based approach, the 1 per cent challenge, involves calculating one per cent of your monthly take-home pay and saving that amount each month. Based on the median UK salary of just over £31,000 (ONS, 2022), this could mean saving around £244 over a year.
Boosting Savings by Cutting Costs
Finally, the cancellation challenge is a powerful tool for identifying and eliminating wasteful spending. Yorkshire Building Society advises taking time to review all direct debits and subscriptions, cancelling those for services or apps no longer used—including forgotten free trials that have rolled into paid contracts. The money saved from these cancellations should then be transferred directly into a savings account each month.
With the financial pressures of modern life, these eight challenges from Yorkshire Building Society provide a diverse toolkit for UK residents aiming to take control of their finances and build substantial savings throughout 2026.
