What Is the 100 Envelope Challenge and Does It Actually Work?

Saving money sounds simple in theory, but in reality, I bet we all can agree that it’s one of the hardest habits to actually stick to. That’s why challenges like the 100 Envelope Challenge have exploded in popularity on TikTok and Instagram. They make saving feel like a game, and sometimes, a little gamification is exactly what people, me included, need to stay motivated.

But does this method actually work? Let’s break it down.

What Is the 100 Envelope Challenge?

The 100 Envelope Challenge is a savings challenge designed to help you stash away $5,050 in 100 days (or however long you choose to spread it out). Here’s how it works:

1. Grab 100 envelopes and label them from 1 to 100.
2. Each day, pick one envelope at random.
3. Put the amount of cash that matches the envelope number inside. (Example: If you pull envelope 57, you add $57. If you pull envelope 12, you add $12.)
4. Keep going until all 100 envelopes are filled.

At the end of the challenge, you’ll have exactly $5,050 saved, which is a solid emergency fund, vacation fund, or starter savings account.

And look, I get it, cash is not for everyone. I personally don’t carry cash on me anymore, so digital totally works too! Just transfer the money from your checking account to your savings account.

Why the 100 Envelope Challenge Works

At first glance, the challenge looks like a simple math trick. But what makes it powerful is the psychology behind it:

• It’s visual. Watching envelopes stack up with cash is satisfying and keeps you motivated; Like heck yeah! Go ME!
• It’s structured. You’re following clear, daily steps, which remove the guesswork from saving.
• It feels like a game. Instead of dreading “budgeting,” you get the excitement of drawing a random number each day.

Who Should Try the 100 Envelope Challenge?

This challenge is a great fit if you:

• Struggle to stick with traditional budgets (been there)
• Want a quick win to build momentum with your savings
• Love the idea of turning money into a visual game
• Feel motivated when you can literally see progress

It’s especially helpful if you’re just getting started with saving or need a “reset” to get back on track.

100 Envelope Challenge Downsides to Keep in Mind

As much as I love the 100 Envelope Challenge, it’s not all sunshine and rainbows. A few things to think about:

• Cash only can be annoying. Like I said earlier, I barely carry cash, so I’d rather do this digitally.
• The big numbers sneak up on you. By the time you hit envelopes in the 80s, 90s, and 100s, you’re pulling out $90–$100 in a single day. That’s tough for a lot of people.
• It’s rigid. Life happens, bills happen, and not everyone has the same income every single day.

Bottom line: it works, but you’ve got to make it work for you.

Fun Variations of the 100 Envelope Challenge

Here’s the cool part: you don’t have to follow the rules exactly. Play around with it!

• Stretch it out. Instead of 100 days, try 100 weeks. That’s just under 2 years, and way more manageable.
• Shrink it down. Use 50 envelopes instead of 100, and you’ll still end up with $1,275 saved.
• Go digital. Use a savings app, online bank transfers, or even a spreadsheet to “track” envelopes. No paper cuts required.

I love that this challenge is flexible. You can adjust it to match your lifestyle and still hit your goals.

Tips to Actually Stick With It

Some quick hacks that’ll make this way easier:

1. Save the big envelopes for your “good” weeks. Like payday weeks, tax refund weeks, or when you get a bonus.
2. Don’t beat yourself up if you miss a day. Just pick back up where you left off. Progress > perfection.
3. Tie it to a goal. Whether it’s a trip, debt payoff, or just padding your emergency fund, knowing the “why” behind it will keep you going.

Final Thoughts

The 100 Envelope Challenge isn’t some financial magic trick. It’s just a fun way to make saving money less painful and more exciting. If traditional budgeting bores you to tears (hi, me), this can be a refreshing change of pace.

And remember, you don’t have to be perfect. If you only make it through 70 envelopes, that’s still thousands saved. That’s a win in my book.

So grab some envelopes (or your banking app), and start playing the money game. Your future self will thank you.

>> More: Browse Cute Money Saving Challenge Books

FAQs About the 100 Envelope Challenge

1. How much money do you save with the 100 Envelope Challenge?

If you finish it all the way through, you’ll have $5,050 saved up. That’s a serious chunk of change, whether you use it for emergencies, a trip, or just peace of mind.

2. Can I do the 100-envelope challenge without using cash?

Absolutely. Digital transfers or apps work just fine. I personally prefer that way; it’s faster, and I don’t have to deal with envelopes lying around.

3. What if I can’t afford the higher numbers?

Adjust it! Try 50 envelopes, or stretch it out over a longer period of time. The challenge is supposed to help you save, not stress you out.

4. What is the 100 Envelope Challenge biweekly?

Instead of saving every single day, you pick two envelopes per week. It takes longer (about a year), but it makes the bigger numbers way more manageable.

5. Is the 100 Envelope Challenge legit?

Yes, it’s legit, but it’s not magic. It’s just a structured way to force yourself to save. If you stick to it, it works. If you don’t, well… you’ll just have a pile of empty envelopes.