On the average day in the mortgage market, the average lender will offer the same mortgage rate terms for the entire day. It’s only when the underlying bond market moves enough that lenders will make mid-day adjustments. Today was one of those days and it involved a reprice to slightly higher levels.
For now, this is still fairly inconsequential. Apart from yesterday (or this morning, for that matter), the average lender would still be at the lowest levels since early April. Instead of being a hair below 7%, the average top tier conventional 30yr fixed is now a hair above.
Today’s bond market weakness began after this morning’s Import Price data came out much higher than expected, but it continued at a gradual pace through the rest of the day. This could suggest that the stronger vibes from Wednesday’s inflation data have run their course and the rate market will now consolidate as opposed to make additional improvements.
LOS ANGELES (AP) — The average rate on a 30-year mortgage climbed this week to its highest level in more than five months, pushing up borrowing costs for prospective homebuyers in what’s typically the housing market’s busiest stretch of the year.
The rate rose to 7.22% from 7.17% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.39%.
When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers. That limits how much homebuyers can afford at a time when a relatively limited number of homes on the market coupled with heightened competition for the most affordable properties has kept prices marching higher.
The average rate on a 30-year mortgage has now increased five weeks in a row. It hasn’t been this high since November 30.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week, lifting the average rate to 6.47% from 6.44% last week. A year ago, it averaged 5.76%, Freddie Mac said.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
After climbing to a 23-year high of 7.79% in October, the average rate stayed below 7% this year until last month, as stronger-than-expected economic data and inflation dimmed optimism among bond investors that the Fed would be able to start cutting its short-term interest rate sooner, rather than later.
In its latest interest rate policy statement Wednesday, the Fed said it doesn’t plan to cut interest rates until it has “greater confidence” that price increases are slowing sustainably to its 2% target.
Until then, mortgage rates are unlikely to ease significantly, economists say.
“Recent data reflects a surprisingly resilient economy, which means rate cuts expectations have pushed out further into the back half of the year,” said Hannah Jones, senior economic research analyst at Realtor.com.
The uptick in mortgage rates in recent weeks is an unwelcome trend for home shoppers this spring homebuying season. On average, more than one-third of all homes sold in a given year are purchased between March and June.
“With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon,” said Sam Khater, Freddie Mac’s chief economist.
Sales of previously occupied U.S. homes fell last month as homebuyers contended with elevated mortgage rates and rising prices.
To cope with rising borrowing costs, some homebuyers are turning to adjustable-rate mortgages, or ARMs. These types of loans accounted for nearly 8% of all mortgage applications last week, the highest level this year, the Mortgage Bankers Association said Wednesday.
“Prospective homebuyers are looking for ways to improve affordability, and switching to an ARM is one means of doing that, with ARM rates in the mid-6% range for loans with an initial fixed period of 5 years,” said Mike Fratantoni, the MBA’s chief economist.
California-based multichannel lender and servicer PennyMac Financial Services announced on Monday a proposed private offering of a $650 million aggregate principal amount of senior notes that the company says it will pay back with interest by 2030.
The notes will “be fully and unconditionally guaranteed on an unsecured senior basis” by the company’s existing businesses, except for certain specific outliers it does not specify.
The proceeds will go to repay borrowings the company has made toward its secured mortgage servicing rights (MSRs) facilities, other unspecified debts and “other general corporate purchases,” the company said in an announcement of the offering. They will only be sold to certain large investors, according to the announcement.
“The offering will be made solely by means of a private placement to qualified institutional buyers,” the announcement said, and have not and are not expected to be “registered under the Securities Act or under any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons absent an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.”
Last month, PennyMac released its Q1 2024 earnings report in which it posted a profit of $39 million. The company attributed a quarterly gain in production revenue to higher net gains on loans held for sale at fair values due to higher volumes in its direct-to-consumer channel, which the company expanded in 2022.
The company also reported growth in its wholesale channel, according to the report.
Dollar Car Rental and Thrifty Car Rental joined the Hertz brand in 2012 when the Hertz Corporation acquired the two rental car agencies.
Both companies primarily serve cost-conscious leisure and business travelers, so if you’re choosing between Dollar versus Thrifty, you might want to know which one would serve your needs better. So, let’s get this show(down) on the road.
Availability
Winner: Thrifty
In addition to 330 corporate locations in the U.S. and Europe, Dollar has more than 600 additional franchised locations in about 65 countries and maintains a strong presence in almost every U.S. and Canadian airport. You also can find Dollar rental car locations in major European destinations as well as some Asian cities.
Even so, Thrifty’s footprint is bigger. It has a presence at major tourist cities in Europe, while its 340 corporate locations are on par with Dollar, it also offers 1,000 franchised locations in 95 countries overall. So, in terms of availability, Thrifty wins this round.
Winner: Dollar
To determine which car company provides the most affordable rates when comparing Thrifty versus Dollar, we checked similar car-type rental prices in smaller and larger markets. We searched for a mid-size car (Toyota Corolla, Chevrolet Cruze or similar) for a one-day and a one-week rental in September 2024 at the following airports:
Rental Length
Dollar Rate
Thrifty Rate
Tampa International Airport
One-day rental.
Seven-day rental.
San Francisco International Airport
One-day rental.
Seven-day rental.
Harry Reid International Airport
One-day rental.
Seven-day rental.
Indianapolis International Airport
One-day rental.
Seven-day rental.
Boston Logan International Airport
One-day rental.
Seven-day rental.
In our search examples above, Thrifty offered more favorable rates only in one case — a weekly rental at Indianapolis International Airport. So Dollar rentals are typically cheaper than equivalent rentals at Thrifty.
🤓Nerdy Tip
In some cases, a weekly rate didn’t necessarily offer the best daily rate with either company, so we recommend doing some math when searching for a rental car for your travels.
Winner: Dollar
According to the J.D. Power 2023 North America Rental Car Satisfaction Study, Dollar and Thrifty are ranked the lowest of all car rental companies, based on responses from more than 8,500 travelers who rented a vehicle from an airport location between August 2022 and August 2023.
Of 1,000 possible points, Dollar and Thrifty scored 817 and 808, respectively. Having said that, the highest-ranked company, Enterprise, scored an 866, so Dollar and Thrifty aren’t that far behind when it comes to overall customer satisfaction.
Loyalty program
Winner: Tie
The two car rental company’s loyalty programs are practically identical, so this round ends in a tie.
Dollar Express Rewards
Dollar Express Rewards, Dollar’s loyalty program, is free to join for drivers 18 years of age and older. The program offers a free additional driver (spouse or domestic partner), quicker pick-up and returns and free rental days.
The rewards structure is quite simple. You earn 1 point per dollar spent on the rental. Free rental days start at 500 points on weekends and at 625 points on weekdays. Only compact, mid-size, standard or full-size vehicles at Dollar locations in the United States or Canada qualify for a rewards redemption.
Dollar Express Rewards members can save 15% off a weekly or weekend rental by providing a member-only promo code at the time of booking.
Dollar Express Rewards points don’t expire as long as you rent a car once every 24 months.
Blue Chip Rewards
Blue Chip Rewards members can earn points on car rentals at Thrifty locations in the United States and Canada only. Drivers 18 and older can join Thrifty’s loyalty program for free.
As a Blue Chip Rewards member, you’ll earn 1 point per dollar spent on the rental to redeem for free days in a compact through full-size vehicle. You can redeem as few as 500 points for a free weekend rental day. Additionally, you qualify for a 15% discount off the base rate when you pay later and not when making the reservation.
Blue Chip Rewards points don’t expire with qualifying rental activity at least once every 24 months.
Thrifty vs. Dollar Car rental, recapped
When comparing Dollar versus Thrifty car rental agencies, you’ll find them to be quite similar. Both are part of Hertz Corporation, both run almost identical loyalty programs and both are ranked similarly in the customer satisfaction survey.
However, Dollar seems to overtake Thrifty when it comes to lower rates, which is likely to appeal to budget travelers. It also has slightly better customer satisfaction ratings. However, Thrifty rental locations are available in more destinations than Dollar, so your decision may be made for you.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
“The mortgage industry is experiencing one of the toughest markets in its history. It is imperative that we all make informed business decisions to navigate this challenging cycle,” Lisa Springer, CEO and senior partner at STRATMOR, said in a news release. “Similar to the mortgage lenders and vendors that serve our industry, STRATMOR decided to … [Read more…]
If you aren’t able to qualify for a conventional mortgage, there are other methods of financing to consider.
Some, like government loan programs and down payment assistance grants, are relatively low risk.
But other methods, like borrowing from a retirement account, should be approached with extreme caution.
Today’s housing market is tough for hopeful homebuyers. The combination of high prices and high mortgage rates means that many potential buyers find themselves priced out of the market altogether — or out of the typical methods of mortgage financing, anyway.
It’s no wonder: The U.S. is in the throes of an ongoing housing shortage, driving up prices on what little inventory is available. And mortgage rates have skyrocketed in recent years, rising from around 3.25 percent for a 30-year fixed at the end of 2021 to 8 percent by late 2024. As of mid-May, Bankrate’s latest survey of large lenders showed an average 30-year fixed rate of 7.12 percent.
Fortunately, whether you’re unable to qualify for a conventional mortgage or just want to explore all your options, there are other, less traditional financing methods out there. Here are six alternative, more creative home financing ideas for eager homebuyers to think about. (Some have a certain amount of risk involved, though, so consider your financial situation carefully.)
1. Down payment assistance programs
Saving enough for a down payment can be a huge barrier to homeownership. Most state and local governments offer down payment assistance programs, which provide a low-risk method of getting some much-needed financial help. Each program will have a different set of qualifications that must be met, but they are typically offered mostly to first-time homebuyers, buyers with low or moderate incomes and people who plan on using the home as their primary residence.
Taking advantage of one of these programs does not exclude you from needing a mortgage — you will still need one — but many come in the form of grants that don’t have to be paid back. They may also take the form of low-interest or zero-interest loans, deferred-payment loans or forgivable loans, which typically don’t need to be paid back as long as you remain in the home for a specified period of time.
2. Government loan programs
If you aren’t eligible for a conventional mortgage, look into the mortgage programs backed by U.S. government agencies. Many come with low or even no down payment requirements, if you qualify, and many have lower credit score requirements as well:
VA loans: Available to active-duty military members and veterans, as well as some military spouses, VA loans are guaranteed by the U.S. Department of Veterans Affairs. For qualified borrowers, most require no down payment and have low or no minimum credit scores.
FHA loans: An FHA loan is insured by the Federal Housing Administration. These loans have lower down payment and credit score requirements than conventional loans and are especially popular among first-time buyers. However, they do require the buyer to purchase mortgage insurance.
USDA loans: Buyers in rural areas may qualify for a USDA loan. These were created by the U.S. Department of Agriculture to encourage homeownership in non-urban regions — the home must be located in a USDA-approved area. These loans require no down payment and tend to have looser credit requirements than conventional mortgages.
3. Balloon and piggyback loans
These unusual types of mortgages both have major disadvantages, but they can be useful in certain situations. A balloon mortgage is so named because it involves a relatively short length of time with low or even no monthly payments, followed by one big lump-sum payment at the end of the term, known as a balloon payment. These are not very common because they’re risky for both the borrower and the lender: You might be lulled into a false sense of security in the first few years, but you will still owe the full amount in the end, so you must be sure you’ll be able to afford the full amount by then. House-flippers often like these loans because when they sell the house, they are able to put the proceeds toward the balloon payment.
A piggyback loan carries less risk, but it does have downsides. As the name implies, it is really two mortgage loans, one piggybacking on the other. This means two different interest rates, two monthly payments and two sets of closing costs. Piggyback loans are often referred to as 80/10/10 loans because you get one loan for 80 percent of the purchase price and one for 10 percent, with the remaining 10 percent being paid upfront as the down payment. The benefit is that it can eliminate the need for private mortgage insurance.
4. Rent-to-own
Sometimes called a lease-to-buy program, renting to own a home is not unlike leasing a car: You rent the place for now, with an option to buy it later. Typically, a pre-arranged contract spells out the terms of the eventual purchase, including the price, and the tenant may choose to exercise the purchase option or not. Often, a portion of the rent payments is applied toward the purchase price if the tenant decides to buy. These arrangements can be great for those who can’t afford to buy a home yet but are diligently working their way toward it. However, if property values change drastically or you are still unable to afford a mortgage at the end of the rental term, you could lose money or run into other issues.
5. Seller financing
In rare cases, a buyer may be able to secure financing directly from the seller of the home, particularly if the seller owns the home free and clear. Seller or owner financing is similar to a traditional mortgage, but rather than a bank lending you money, the home’s owner is lending it to you and taking on the debt themselves. This may be beneficial to buyers who would not qualify for financing otherwise — in some cases, buyers may take out a mortgage for part of the purchase price and finance the rest via the seller. However, these situations usually involve a much higher interest rate than a standard mortgage, and they often require a balloon payment as well.
6. Borrowing from a retirement account
Finally, if you’re really between a rock and a hard place, you could potentially borrow from a retirement account to pay for your home — but it’s a risky step. Taking out a 401(k) loan is generally not recommended. There are likely to be limitations on how much you can take out, and doing so could mean paying penalties and taxes. And even though you’re borrowing your own money, you’ll still have to pay yourself back, with interest.
In addition, remember that your 401(k) is tied to your job — if you leave your current job for whatever reason, you may have to pay the money back more quickly than you’d anticipated or risk tax and early-withdrawal penalties. And you can’t borrow from a 401(k) from a company you no longer work for unless you’ve rolled it over into another account.
Bottom line on how to finance a home
If you don’t qualify for a conventional mortgage right now, there are several nontraditional, alternative ways to finance a home purchase — or at least help to finance it. However, while some options are solidly government-backed, others are very risky. Do your research and be sure you’re choosing a financing method that will work for your specific needs. It may be smart to consult with a financial advisor as well.
The Home Depot’s online-only Decor Days event is back, offering style savings across home and decor essentials. From May 2-6, 2024, customers can enjoy savings on a wide range of thoughtfully selected furniture, lighting, rugs, wall art, kitchen tools and more, exclusively available at homedepot.com/decor.
JJust in time for Mother’s Day, Decor Days presents the perfect occasion to refresh and revitalize the home. From on-trend furniture pieces that add the perfect touch of comfort to any space, to eye-catching wall art and innovative kitchen gadgets that are sure to spruce up any space, customers can shop exclusive, online-only deals from popular brands like KitchenAid, Tempur-Pedic and Ember, as well as exclusive Home Depot decor brands including Home Decorators Collection and StyleWell.
“Our Decor Days event is all about providing exceptional value on a curated selection of quality products, ensuring that everyone can complete their project in a style that is uniquely theirs,” said Corinne Bentzen, general manager for home decor online at The Home Depot. “We know what it takes to turn your house into a home, and we’re committed to bringing our customers the latest trends at a great value to put the perfect finishing touches on any home improvement project.”
Customers can look forward to offers on a broad selection of items including:
Throughout Decor Days, customers can take advantage of The Home Depot’s everyday free Buy Online, Pick Up in Store (BOPIS) service, as well as free and flexible delivery on more than 10,000 online home and decor items. Returns are also available in-store or by mail.
Customers eager to refresh their homes for the warmer months and save on quality furniture and stylish decor can visit homedepot.com/decor from May 2-6, 2024.
Welcome to the Lone Star State, where the spirit of education meets the charm of small-town life! In this article, we’re diving into seven of Texas’s top college towns, where BBQ joints sit alongside bookstores, and cowboy boots are paired with backpacks.
From the sheer weirdness Austin apartment renters experience every day to the quaint allure of a quiet house in College Station, each town below boasts its own flavor and flair.
So, pop on that ten-gallon hat, we’re setting out on a journey through seven Texan gems where academia thrives within southern hospitality. Get ready to discover why everything, including higher education, truly is bigger (and better) in Texas!
At the University of Texas at Austin, tech is king. The university’s strong ties with major tech companies in Austin, like IBM, Dell, and National Instruments, provide students with internships that often transition into full-time positions after graduation. Additionally, UT Austin’s annual entrepreneurship competitions, like the Texas Venture Labs Investment Competition, actively support student startups, linking them with real investors.
The impact of UT Austin extends well beyond the campus. Many students and alumni engage directly with local government, influencing urban planning and community projects for those living in Austin. This participation ensures that the city’s growth and large-scale projects reflect the youthful, innovative spirit of the university’s population.
Apartments near UT Austin | Houses for rent near UT Austin
Texas A&M University is a cornerstone of College Station. As the “A&M” implies, the university is particularly noted for its agriculture and mechanical engineering programs. The AgriLife Research program conducts cutting-edge agricultural research that translates into improved farming techniques across the country. Engineering students often collaborate with local businesses through the Engineering Experiment Station to develop technology that strengthens the town’s infrastructure.
Texas A&M’s influence is also felt in the local job market. Graduates often find employment in the area, which helps to retain talent locally and sustain economic growth. Partnerships with aerospace and mechanical engineering companies bring professional opportunities to College Station, ensuring a steady supply of jobs and constant innovation.
Apartments near Texas A&M | Houses for rent near Texas A&M
Texas Tech University is particularly well known for its health sciences and engineering programs. The Health Sciences Center trains healthcare professionals and provides critical medical services to the region, filling gaps in local healthcare availability.
The Texas Tech National Wind Institute is crucial for the community too, developing new building safety standards that help protect homes against tornadoes and severe weather, essential in a storm-prone place like Lubbock.
Apartments near Texas Tech | Houses for rent near Texas Tech
The University of North Texas in Denton is a great spot for students interested in digital media and the arts. The Mayborn School of Journalism’s collaboration with local media outlets provides hands-on experiences for students. This partnership is a win-win for everyone and improves the community’s access to high-quality news and information.
Additionally, UNT’s College of Music plays a significant role in Denton, organizing events like the Denton Arts and Jazz Festival and more.
Apartments near University of North Texas | Houses for rent near University of North Texas
Baylor University profoundly influences Waco through its law and medical programs. The Law School’s Legal Aid Clinic offers free legal services to the community, allowing students to gain practical experience while assisting Waco locals. This program helps bridge the gap between academia and real-world legal practice, giving BU students a leg up after graduation.
Baylor’s medical programs work with local hospitals on research and clinical trials. These partnerships enhance medical care and provide students with critical hands-on training in a real-world medical setting.
Apartments near Baylor University | Houses for rent near Baylor University
At Sam Houston State University, the College of Criminal Justice has a tangible impact on Huntsville through its Correctional Management Institute of Texas. This institute provides advanced training and development for local law enforcement, enhancing policing practices and community safety.
The university is also only one of 17 universities to be affiliated with the PGA for its Professional Golf Management program, which is one of the best in the country. This makes Sam Houston and Huntsville a destination for students with varied interests from all walks of life.
Apartments near Sam Houston State University | Houses for rent near Sam Houston State University
Texas State University at San Marcos is championed for its education and environmental conservation programs. Its teacher preparation programs supply San Marcos schools with well-trained educators.
Through the Meadows Center for Water and the Environment, Texas State also leads conservation efforts for the San Marcos River. This center conducts important ecological research and gets students involved in conservation projects.
Apartments near Texas State | Houses for rent near Texas State
Methodology
College towns are qualified as towns or cities with at least one college or university and fewer than 1,000,000 people according to U.S. Census data. Average rental data from Rent.com in May 2024.
This is not a comprehensive list of all of the towns and cities in the state meeting those requirements.
Consumer Financial Protection Bureau Director Rohit Chopra called out the credit reporting industry and the strain their recent fee hikes have placed on home affordability in an already difficult lending environment.
Speaking at the Mortgage Bankers Association Secondary Markets Conference in New York City, Chopra criticized the steep increases in charges from score provider FICO, or the Fair Isaac Corporation, the three credit reporting agencies and resellers.
Calling for more accountability, he invited comments from lenders as the bureau looks for solutions to address the “price gouging” in the market.
“We are eager to hear from lenders and will look at possible rulemaking and guidance to improve competition, choice and affordability,” he said.
The reporting agencies, Equifax, Experian and Transunion, typically set wholesale prices resellers pay, which is then passed on to their lenders and consumers. With reports required for sale to the government-sponsored enterprises, mortgage businesses often have little choice but to pay.
“With a captive customer base, vendors have implemented annual price increases that far outpace inflation,” Chopra said. “And in order to get the credit and credit reports, mortgage lenders generally must pay twice, once to confirm eligibility, and once just before the loan closes.”
During the MBA session that was sponsored by FICO, Chopra called out the significant change in pricing structure for credit scoring at the end of last year, resembling a flat fee rather than volume-based model. Among the changes was a hike to soft-credit pulls that put them at the same level as hard pulls, despite differences in the information provided.
Fees multiply when multiple applicants are on the mortgage and investors also require reports, meaning lenders often pay for the same information six or 12 times, Chopra said.
Compounding costs, credit reporting agencies have found a way to profit from inaccuracies mortgage lenders find in a report, thanks to a rapid rescoring program, which Chopra referred to as a “pay-to-play” service.
“A report full of bad data is another opportunity for these companies to leverage their position as an indispensable market utilities and extract yet more money from consumers and lenders who have no other options,” he said.
Following the announcement from FICO late last year, lenders sharply criticized its moves, saying, ultimately, that they end up being passed down to the consumer.
As companies generally don’t charge borrowers upfront for credit report costs, “Lenders generally have to eat the costs of the initial applicant screening for applicants who don’t qualify or decide not to pursue a loan,” he said.
“In some sense, borrowers that close aren’t just paying for the credit reports and scores for themselves, they’re also paying for inflated fees on the applicants who don’t close,” he said.
Chopra also recommended capital markets to develop solutions for investors to assess mortgage pools and rely less on mandated credit scores.
In a discussion with MBA CEO Bob Broeksmit, Chopra also pushed back on mortgage-industry criticism of his stance toward so-called “junk fees” across the banking industry. In both his opening remarks earlier in the day and discussion with Chopra, Broeksmit took issue with the “junk fee” label and whether certain fees qualify as such if they are spelled out in advance.
Chopra responded that “a junk fee isn’t just what’s hidden.” In the CFPB’s opinion, it also covers what is not subject to competition, or if it applies to services nobody wants.
“I’m happy that you disclose some of these ripoffs, but they shouldn’t be a ripoff,” Chopra said.
Inside: Get empowered with our popular Money Saving Challenges! From envelope challenge to monthly savings, become a finance guru today!
Do you want to save money? Obviously, if you are here checking out the money saving challenges from Money Bliss!
You all love the concept of saving money!
But, we may not have been as successful as we hoped in the past. And that is okay! Give yourself some grace and start afresh today.
Everyone knows that a penny saved is a penny earned.
By participating in one of our challenges, you can save money and have fun while doing it!
Let’s face it, we live in a world of economic struggle. With many people struggling every day to make ends meet and pay the bills, is there anything you can do to save money?
A simple solution: Start by paying yourself first with one of these money challenges.
We have rounded up all of the best money challenges on our site, so you have one resource to bookmark and come back each time to try a different challenge. All with one purpose in mind… save money to lead your best life.
One of the Money Bliss money saving challenges is the perfect way for you to save money every day, and become rich with your persistence and dedication.
Join our Money Saving Challenge today and start saving your pennies– we’re all in this together!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is a Money Saving Challenge?
A Money Saving Challenge is a challenge that lasts all year and you can repeat them as many times as you want.
This unique savings game is designed to strengthen your savings habit, transforming financial discipline into a fun and exciting adventure. There are a plethora of different money saving challenges, all tailored to prove you’re capable of achieving your savings goal.
You aren’t bound by any calendar restrictions; you can initiate the challenge at any period throughout the year to suit your convenience.
Even better, you can pick the savings game that aligns best with your income and lifestyle!
This savings commitment involves challenging you to live thriftily to accumulate more wealth and find joy at the successful completion!
Money saving challenges can be tracked easily with any of our printables. Throughout any challenge, you are able to track your progress and see how much money has been saved by following the predetermined rules for each challenge.
Why Complete a Money Saving Challenge?
This challenge works because it helps you save money.
More explicitly, it helps you exercise control over your immediate spending and discourages detrimental behaviors such as making an impulse purchase.
The ultimate goal of completing a money saving challenge is to save as much money as possible within a certain time frame.
The best way to complete the task is to follow the instructions and then track your savings.
This is a great way to spend less money and save more money in the process.
And that’s precisely the reason you return every year for a renewed challenge!
A money saving challenge gives you the reins, allowing you to save as per your comfort and desire. You can design your goals and progress bars to always stay updated about your savings game advances.
While participating in one of our first money challenges, we noticed an enduring shift in our spending habits. Therefore, a savings commitment today can secure a financially healthy tomorrow!
Why a Huge Roundup of Different Money Challenges?
A myriad of different money challenges has been created for a variety of reasons. Many people participate in these challenges as an avenue to improve their financial situation, curb impulse buys, assist others and/or merely for enjoyment.
Since everyone is at a diverse place financially, we aim to equip you with as many viable alternatives as possible.
Another reason why there is such a huge variety of these types of challenges is that each one can help people at various stages. Such as needing to pay off debt, save up for vacations, build an emergency fund, or set aside extra funds during back-to-school shopping season so you don’t have any surprises when your kids come home with tons of new clothes.
My readers know first-hand, from their remarkable triumphs, that these money challenges work!
You need to pick one today that will work for your current financial situation, bookmark the page, and then revisiting to find the next money task is your action plan.
Money-saving challenges can be fun and effective, not just a game of numbers.
It’s not only fun but it also helps increase awareness about getting rid of unnecessary costs and saving up for future goals with this type of challenge!
The Best Money Saving Challenges
The best money saving challenges are the ones that allow you to save a lot of money and still accomplish your goals.
The best way to do this is by focusing on what your priorities are and what you want to accomplish.
We’ve compiled 20 money saving challenges that can help you save money. These are the best and most effective ways to make a difference in your life, no matter what budget or lifestyle you’re living on.
These challenges will help you take full control of your finances and change how much more cash is sitting around every month for yourself!
What are some money saving challenges?
Idea #1 – 52-Week Money Saving Challenge
The 52-Week Money Challenge is a financial goal created for those who want to save more money in the span of 52 weeks.
This savings commitment not only makes saving more manageable but also turns it into a fun savings game. Weekly challenges such as this are extremely popular since it makes you more likely to stick with it.
The weekly money saving challenge encourages you to save $1,378 by the end of the year by merely increasing your savings $1 more dollar every day. It’s a simple idea: every week, you put in $1 and at the end of 52 weeks, you have more money saved fairly easily.
Other alternatives for the Money Bliss 52-week money saving challenge can also include aiming to save $3000, $5000, or $10000 over the course of 52 weeks, much like the 100-envelope challenge.
Action Step: Learn more about the 52 week money saving challenge.
Idea #2 – Reverse 52-Week Challenge
The reverse 52-week challenge is a way for people to save money by starting with a bigger amount of money at $52 and working their way down by saving $1 less each week.
The reverse version of the 52-week challenge allows you to start by saving $52, and then work your way down by $1 each week. The goal is for people to help themselves out while they save money on their bills.
This is a great way to kickstart your saving money experience. If motivation wanes over the 365 days, you’ll be relieved to know that you have already saved a majority of the money.
Action Step: Learn more about the reverse 52 week money saving challenge.
Idea #3 – Envelope Money Saving Challenge
The 100 Envelope Money Challenge is an extremely popular and trending way to save money! And the premise to save is super easy!
Spanning 100 days, this savings habit involves selecting a fresh envelope, each marked with numbers between 1-100. The number you select determines the amount to be saved on that particular day.
Consider any of the Envelope Money Challenges (50 day, 100 day or 200 day) as an ideal option for anyone who wants to aggressively build up savings quickly.
These envelope challenges are not just about accumulating savings quickly but also inculcating a shrewd savings habit for future security. Specifically, it enables you to save $1275 in 50 days or $5050 in 100 days; a significant stride towards your savings goals.
Action Step: Engage your savings habit by getting involved in one of the envelope challenges.
Secure your future in a fun way! Download your free printable 100 envelope challenge template!
Idea #4 – The 26 Paychecks Challenge or Bi-Weekly
The 26 Paychecks Challenge is a bi-weekly money saving challenge. Consider it as a more structured version of saving since this is how most people are paid.
The great news is you can save the same amounts as the 52 week challenge, but the printables are created for your biweekly budget!
Also, you can modfidy the same printable tracker on the 52 week penny savings challenge by:
Choose to do it over a span of two years instead of one year.
Double up and save two weeks for each bi-weekly paycheck.
Either way, you are nurturing a crucial savings habit, which is definitely a win!
Action Step: Learn more about the bi-weekly money saving challenge.
Idea #5 – Monthly Money Saving Challenge
This popular monthly saving challenge allows you the chance to save money each month by participating in the monthly challenges.
This works well for those who budget on a monthly basis.
For these monthly challenges, you will save amounts like $1000, $3000, $5000, $10000, $15000, $20000, or $25000. Each presents plenty of options to find one that suits your income and budget.
Action Step: Learn more about the monthly money saving challenge.
Idea #6 – Twice per month Saving Challenge
If you are paid twice per month or 24 paychecks per year, this challenge is for you.
This bi-monthly saving habit encourages you to pay yourself first with each paycheck, allowing you to focus expenditure on things that matter most to you.
You’ll be setting aside a specific amount for each paycheck.
Although the freedom lies with you to decide how much you can save, it’s advisable to squirrel away at least 10% of your paycheck to kick start your nest egg. If you can strive for a 20% savings target, even better.
This is done twice per month and should help contribute to your overall savings goals.
Action Step: Learn more about the twice per month money-saving challenge.
Idea # 7 – Mini Saving Challenge
The importance of mini saving challenges for those on a low budget cannot be underestimated. They offer a manageable route toward improved savings habits and financial security, especially for those with limited resources.
More often than not, these mini challenges often involve tracking your spending. This process can help you understand your spending patterns and identify areas where you could cut back, translating into more savings.
These mini challenges are a stepping stone to increasing your financial literacy. As you navigate the challenge, you learn about budgeting, the importance of saving, the power of compound interest, and other financial concepts. This knowledge can empower you to make better decisions
Action Step: Find the right mini saving challenges and break financial objectives down into manageable, incremental targets.
Idea #8 – No Spend Challenge
The No Spend Challenge is a simple program that promotes saving money and living below your means.
You pledge to spend no money for a set period of time. There are different rules and guidelines depending on the type of challenge, but generally, the challenge period will be between 14-30 days.
The goal is to create an environment in which you are forced to think creatively about your spending habits and how you can better manage your finances.
For us, a no spend challenge gave us insight into our spending habits while also encouraging us to save more money in order to reach personal goals, which was to pay off debt.
Action Step: Learn more about theno spend challenge.
Idea #9 – Penny Challenge
The Penny Challenge is an incremental daily saving challenge that advocates for the mentality of ‘every penny counts’.
You begin by saving just one penny on the first day, two pennies on the second, and so forth, until you are saving $3.65 on the last day of a full year. This seemingly small act can accumulate to a substantial sum of $667.95 over the course of a year.
The challenge not only encourages saving but also instills the realization of how small, regular actions can lead to considerable achievements, helping participants understand the often overlooked value of pennies.
This challenge is a great initiative for those starting to save and can be made more enjoyable by involving friends and family, thus creating healthy competition and mutual motivation.
Idea #10 – Spare Change or Rounding Up Challenge
Spare change or rounding up challenge is another option that can help you save money.
With this spare change challenge, you can do it with coins or digitally!
Collect your spare change/coins and hold onto them for a big purchase later on!
Or use an app that automatically rounds up all of your purchases and starts investing for you.
For example, if you spend $15.26, you will save 74 cents by rounding up.
Action Step: Sign up to automatically save your spare change.
Idea #11 – 365 Day Nickel Saving Challenge
The Nickel Saving Challenge is a common, yet simple math problem to save nickels, and each day you double the number of nickels saved.
Simply put, with the Nickel Challenge, you save one nickel on day 1, two nickels on day 2, three nickels on day 3, and so forth throughout the year.
By day 100 of the nickel challenge, you will save $5.00 and accumulate $252.50. On day 200 of the nickel challenge, you will save $10.00 and accumulate $1005. By
Over the course of the year, you can save $3,339.75 with the simple 365-Day Nickel Challenge. Now, you know why it is popular!
Action Step: Pick your saving jar to hold all of your nickels!The perfect piggy bank!
Idea #12 – $5 Bill Challenge
The $5 Bill Challenge is a fun challenge that can help you learn to be more resourceful! It teaches you how to look for money anywhere, but also helps them spend less and save more!
The $5 Bill Challenge is a challenge to save money based on all of the five-dollar bills you receive or find. The person receiving the five-dollar bill must keep store it for a year to see how much they can save.
As an alternative, if you are feeling uncomfortable with $5, try the challenge with one-dollar bills. You can find out just how much money that is in your pocket!
A jar with $5 bills can be used as an extra savings boost. It is recommended to put the money in a clear jar so it is easier for you to see how much money there was before and after putting more money into it.
Action Step: Pick your saving jar to hold all of your dollars!
Idea #13 – 10K Money Saving Challenge
This money challenge is hands down the favorite among readers at Money Bliss.
It was created in order to help people save $10,000 in just one year.
For many people, saving five figures is a big deal and one that is difficult for many to overcome their money blocks on.
If you are serious about committing to a challenge, then the 10k money saving challenge is just for you.
Action Step: Start your journey to save 10000 in a year.
Idea #14 – 5K Saving Challenge
The 5k saving challenge is a savings plan that helps people to save $5,000 in 6 months or $5k in a year.
Five thousand dollars is the right amount of money to save for a vacation, Roth IRA, or many other big purchases. Thus, this is a popular amount for people to save.
Shift your thinking and begin to experience financial freedom while saving 5k in a short amount of time.
Action Step: Learn how to save $5000 in 6 months or complete it in one year.
Idea #15 – Flexible or Hacked 52 week Money Challenge
This allows you to be flexible and you can save different amounts each week.
For many people, this is a great way to sock away extra cash when they have it.
You can adjust the amount you save each week, but at the end of 52 weeks, you still have the same amount saved in your goal.
Action Step: Learn more about the flexible or hacked 52 week money saving challenge.
Idea #16 – 30 Day Money Challenge
The 30 Day Money Challenge is a challenge where each day you focus on creating better money management skills. Very likely, by the end of the 30 days you are in a better spot financially and starting to save more money.
The goal of the 30 Day Money Challenge is to save money. The challenge runs for 30 days and tasks users with saving as much as possible.
Action Step: Start the 30-day money challenge today.
Idea #17 – The Pantry Challenge
The Pantry Challenge is a recipe for how to stretch your food.
Instead of adding grocery items to your cart, you must first “shop” your pantry or freezer.
Typically, when we hold a pantry and freezer challenge, we cut our grocery bill in half. It forces us to be creative with the things that we have already spent money on.
The Pantry Challenge is a grocery shopping challenge that gives your wallet a break from going to the store for one week. It helps you achieve food savings and avoid wasting money on groceries.
Action Step: Learn to stock your house with cheap food.
Idea #18 – Challenge Yourself to Turn 100 into 1000
Money can take time to save. To increase the pace of saving money, look at ways to increase your money.
This is a great challenge to think outside of the box on how to turn 100 into 1000.
That would be nice, wouldn’t it?
Honestly, making money may be easier than trying to squeeze every last cent out of a dollar.
Action Step: Find the exact ways to turn 100 into 1000.
Idea #19 – Habit Jar
The Habit Jar is a money saving device that combines the idea of breaking or creating habits with money saving. Every time, you save money on a bad habit, the money goes into the jar.
Plus the habit jar is an easy way to track your progress in achieving habits. Some people use them as a way to keep track of their personal goals, such as saving money or stopping bad habits.
When you reach your goal, take out the money as a reward!
Action Step: Pick up the book Atomic Habits to truly excel at making changes.
Idea #20 – Weather Savings Challenge
This weather saving challenge is purely fun and a great way to save money that is outside of our control.
Each day or once a week, deposit money that equals the average high temperature in your city.
For example, if it was 65 degrees out, you would move $65 into your savings account. If you live in a hotter climate you will be saving much quicker than those dealing with frigid temperatures.
This is a fun way to save for vacations to escape to somewhere else!
Action Step: Open up your savings account to start that vacation fund.
Idea #21- Christmas Money Challenge
This is how you afford Christmas without all of the stress.
Throughout the year, you save money each month to be used during the holiday. This Christmas money challenge is super simple to do.
By saving $50 per month, you will have $600 when Christmas rolls around. Want to save more, do it!
Action Step: Start a Christmas Saving Fund today. up your savings account to start that vacation fund.
Idea #22 – My Favorite Money Saving Challenge
For the last money saving challenge, I want to share with you my personal favorite.
The reason is simple.
It is easy to track year over year and make sure you are on track to reach financial independence.
Did you know? The more you save today, the less you have to save tomorrow.
That is why I love calculating my savings percentage.
This is a great personal finance ratio to know.
You can increase your saving percentage each month and then work on increasing it, even more, each year.
For example, if you are saving 10% or $6000 this year, by increasing your saving percentage by 1% for a year, you now save $6,600.
This is a great way to tailor your savings by how much you make.
Action Step: Begin to increase your saving percentage each year.
Money Saving Challenges Success Stories
Still not optimistic?
Here is a tidbit from a reader, E.P.:
“I completed the $10,000 challenge in 2019! It goes to show that if you can scrape the money together to meet weekly targets it’s possible to put that much aside without having a 6 figure job 🙂
I just remember that progress isn’t linear and not to get too down on myself.”
That is just one story.
All you have to do is visually see yourself saving in 2024.
Which Money Saving Challenge will you Choose?
If you are looking for the Money Saving Challenge, it is the one that doesn’t start with “Old” or “New Year.”
The perfect money saving challenge is the one you start today.
Hopefully, this money saving challenge post has inspired you to start saving today.
We know we have inspired thousands of other readers.
For now, we cannot wait to hear your success story like the one above.
Are you ready to save money in 2024!?!?!
Make sure to grab your money saving challenge printable – exclusive for our mailing list only.
Start saving with our Money Saving Challenge today!
If you are serious about wanting to learn how to FI, then it starts with saving money.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.