Hello all! Welcome to the new home of The 1% Challenge. The first 8 months flew by and we did amazingly well! (£85K cleared - Amazing!!!!)

Time for a fresh new thread at the start of a fresh new month!
I'll be moving members list & ideas list here shortly!

Please pop in to say hello and subscribe to this new thread!

What's it all about?

So, for anyone new to the challenge & joining us here for the first time, you might find the back-story helpful. The original thread is here Post 1951 on pg 98 was the year end round up and has all the stats.

Basically the idea is that money comes to us in lots of small ways and we don't often realise it. When faced with a big debt it can be overwhelming and we find ourselves just waiting for the next pay day when we can make a large payment.

However, we shouldn't be counting paydays as that's really demotivating, we should be saying we're 100 steps away from being Debt Free or our Savings Target. Each step is 1%. You can do those steps as fast or as slow as you like, as long as you are making progress. There are many ways you can make your 1%. So many in fact that I put together a list of over 100+ ways you can make 1%. Some can even be done several times!!

When the budget has settled and you have a long journey ahead of you, it often gets tough, trying to look for the light at the end of the tunnel. We often push ourselves hard but always wish we could pay more, do more and save more. Sometimes it's hard to be satisfied with the baby steps that we know are good for us.

By doing it 1% at a time and celebrating every milestone, you're on the debt-free ladder & you know exactly which rung you're on. You can take the steps as fast or slow as you like. When you need to, you can pause for a while and reflect on your progress and then carry on renewed.

We need to enjoy the journey and not just the destination.

Three Golden Rules

1. You MUST pay your minimums to your debts each month (This is covering your interest) The percents you earn are in addition to covering your monthly minimums.

2. Always work with accurate balances. Honesty with yourself now saves you from being disappointed with your balances later on.

3. When you feel overwhelmed or demotivated just focus on your next 1%


How To Join in on the challenge! -

Post in BIG colourful letters, your name, 1% and total so far. I'll add you to the list. e.g LITTLE MISS UNI-DEBT - 1% is £80.

What you might need :-
Moneybox / petty cash tin (keep your £s safe!)
100 wage envelopes, or 100 paperclips - (the freer the better)
Notebook
Free printable 100 square here or here (press begin & then print)
(or make one of your own! Get the felt pens out! )

How to...
Take your exact debt or savings total and divide by 100.
Round UP to the nearest £1 or £10. This is your 1%
In your notebook start a list of 100 ways that you can earn 1%
Print the ideas list below for inspiration
Use the thread for support & motivation
Contribute new ideas and what worked for you
Shout up and join the list & get a member number.
Post a weekly/monthly update of what you've done and how you did it!
Have fun with the super secret smilies
Colour in your progress on your 100 square
Put your member number in your sig, and your % so far & spread the word!

Important Notes

***You MUST MUST MUST pay your minimum payments to all of your debts AND save your 1%'s as well.*** This is now a golden rule

Your 1%'s are what you owe, your min payments are the interest you are paying. I consider the min payments as a 'service charge' the cost of rolling your debt on to the next month. This makes you consider just how much your debt is costing you each month!

As you pay your 1%'s to your cards, your min payments will start to drop. The faster you put your 1%'s to your cards the less interest you will pay.

If you save up to 100% and pay it off in one go this is MORE expensive than paying each 1% as soon as you have earned it. (I try to save 5% then pay it off)

This challenge is probably best for debts/savings £20k or less.
If you find your 1% still too daunting, just decide on how much you want to pay off this year. Divide it by 100. That should give you a 1% figure that is more suitable. Some find it easier to do one card at a time, starting with the highest interest rate.

If your debt is still increasing through spending, this challenge isn't right for you yet. You need to go back a step to your SOA and re-work it until your debt is steady and you have a little room for overpayments. Then come back when you're ready!

Please contribute your 1% ideas - we need to build a fantastic list for people to choose from!

Anyone wanting to join from now on please post in BIG letters and you'll get the next number on the list.

Little Miss xx