Making the commitment to setting aside a portion of income each month is something many may do at the start of a new year, but keeping on track with savings goals as the months go by can be hard. For that reason, some turn to savings challenges, enabling them to stay motivated by the task in hand.
On day one, meaning today on New Year’s Day, 1p should be put into the pot.
Each day, the amount being saved should be one pence more than the previous day.
As such, day two requires a savings contribution of two pence.
Come day three on January 3, three pennies should be put into the piggy bank.
This needs to be continued each day throughout the year.
The maximum amount one needs to put away on any given day under this challenge is £3.65 during a non-leap year.
So, on December 31, 2021 is £3.65.
It would be £3.66 on the final day of a leap year, and due to the extra day, a slightly higher savings total could be reached.
The bank also conducted a survey on the topic of saving and its psychological impact, finding 75 percent of Britons believe saving £1,000 would make them happier than spending £1,000.
Psychologist at Durham University, Mario Weick, commented: “The evidence suggests that neither extreme spending nor extreme frugality are pathways to happiness. Uncontrolled spending can cause guilt and debt.
“On the other hand, being overly frugal can be burdensome and can cause excessive worries about spending money.
“A healthy balance between restraint and allowing oneself some pleasure and spontaneity is probably an optimal strategy to boost happiness. Saving some income, while giving oneself a spending allowance really does appear to be the golden formula.”