How to Automate Your Savings with the 52-Week Challenge and Micro-Investing Apps

Saving is one of the most important financial actions a person can take, and it pays off and multiplies the rewards in the long run. For those new to the market and earning beginner salaries, it may seem challenging to put aside the resources needed to start saving.

Luckily, there are tools out there that automate savings and that work even with the smallest amounts. One way to start saving and staying consistent with your plans is to stick to a 52-week challenge plan and use micro-investment apps. In this article, we’ll explain how to do so.

What’s the 52-Week Challenge?

The 52-Week Challenge is commonly used to help beginners start saving and to do so with a simple pattern. Simply put, the investors increase the amount they put into savings each week. If an investor puts $1 in the first week, they’ll add $2 in the second, and so on until they reach 52. Total savings at the end of the year will accrue $1378.

It goes to show that even the smallest amount multiplies over time, as long as the investors are consistent with how much they put in.

Automating the Savings

Savings can be automated using a variety of simple and often free apps. The users can set up the amounts to be pledged each time or set up a schedule on how they plan to increase the payment on a weekly basis. By automating this process, investors can rest assured that they will stick to the plan and that it won’t depend on their willpower alone.

Using an app also removes the temptation to spend money elsewhere and reduces the impact that saving can have on day-to-day expenses.

How to Use Micro-Investment Apps to Automate Savings

Micro-investment apps are mobile device apps that are used to invest and trade online. Since it’s also easy to learn how to buy Bitcoin using tools like  Cash App, following guides like this one here, investors can trade in both crypto and traditional assets using their mobile devices only.

Apps such as these can be made to align with the 52-week plan, even though they have other, more sophisticated features as well. For example, an investor can opt for round-ups and, therefore, use spare change to make investments and savings when they have them.

How to Maximize Growth When Making Small Investments

Micro-investment apps can be a convenient way to grow your savings.  By automatically placing investments towards different portfolios, investors can benefit from compound returns.  While such an approach provides the potential to earn more than with traditional savings accounts, it also comes with risks inherent to investing.

This is especially true with crypto investments that have a higher yield due to the fact they are somewhat riskier than traditional assets.

The key to getting this benefit is to be consistent and to keep adding the agreed amount every week. It’s also possible to reinvest earnings and, therefore, maximize returns in the long run.

Common Challenges with the 52-Week Plan

The 52-Week Plan isn’t without its faults, as is the case with any other plan for investing and saving. The main reason for this is that many investors struggle to keep up with weekly increases, especially as the year progresses and they start to become substantial.

Unexpected expenses can also cause a disruption to the savings plan, and that’s why it helps to have an emergency fund to cover such expenses before saving and investing. Some investors also start to lose motivation mid-year, when the installments are high, and there’s no sizable reward yet.

Psychological Benefits of Saving on a Plan

There are also many psychological benefits of long-term investing that go beyond profit itself. Investing in such a manner brings confidence to the investor because it shows how a small investment can grow over time and result in real profits.

It’s also a great way to practice responsible behavior and stick to the plan you’ve created for yourself. A wealth-building mindset works regardless of the amounts put into saving or investing, and it’s, therefore, a perfect tool for young investors looking to develop such a mindset.

To Sum Up

A 52-week challenge is a common tool used to slowly save or invest assets by starting with a small amount and increasing it with each following week. Interest compounds over time, and the profits made from such an effort increase and multiply. This process can be automated using investing apps so that the investor isn’t obligated to follow the process on their own.

Most online investments, including those using crypto, can be done via the app and automated according to conditions set by the investor. Using the 52-week method also comes with psychological benefits, such as growing confidence and a slow entry into the world of finance and asset management.