The 2022 1% Challenge

outoftheviciouscircle

Welcome to the new home for the 2022 1% Challenge - 100 ways to make your 1%. Little Miss Uni debt started this amazing thread and Adventurewanted continued it 2020. I really found this challenge helped me when I was in debt previously and was disappointed to see it hasn’t continued into 2021. I had a little go at starting the thread back up in 2021 but was nearly at the year end so I didn't get much interest. Hoping that the new year, new start Moto will get some people on board with me this year although I will endeavour to see this through until my fianl1%  I’ve copied below Little Miss Uni debts first post from the previous thread:

What's it all about?

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 we’ve 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 - useful if you are saving physical money eg. change/money made from Facebook sales, etc)
• Notebook
• Free printable 100 square

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!
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.***

Your 1%'s are what you owe, your min payments (if not 0% CCs) 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 please post in BIG letters and you’ll get assigned a number.

BooksAndBudgets

Please can I join?

BOOKSANDBUDGETS -  1% is £60.00

crazy_cat_lady

Think I'd like to have a go at this please. I need something to focus me for the year ahead - I have a lot of debt so it's going to be a while.

MostlyFine

Hi, 

This sounds like a great idea - very motivating. I think I would want to take my debt in four 'chunks' though if that's ok?

If so then my name is MOSTLYFINE and 1% for chunk 1 is £13 (this is the smallest chunk but will free up monthly payments for the next one).

Thank you. 

scrimpandsave

Amazing, I would like to join too please.

SCRIMPANDSAVE - 1% to be worked out, things are not so good debt wise…but this is a great idea 👍

fluffytail

Can I join in please?  I’m tackling one debt at a time, the first one being my overdraft. It’s not a huge balance but the interest rate is despicable and it needs to go! 

FLUFFYTAIL and my 1% is £5.50

outoftheviciouscircle

Its lovely to have more people on board. My 1% is a whopping £132 and I aim to be debt free next year so I am going to have to work very hard. I start a post below that will be reserved for the challenger list along with your totals and progress. I will aim to update this weekly.

Good luck everyone!!

outoftheviciouscircle

Challenger List

Outoftheviviouscircle = £132.90
Books and Budgets = £60.00
Crazy_Cat_Lady = £45.71
Mostly Fine = £13.00
scrimpandsave = £170.58
fluffy tail = £5.50
Bekah89 = £113.00
Pixie_fairydust = £42.00
accidentalglixch = £22.00
MoneysaingmadGem = £60.00

leftatthetrafficlights

I'm intrigued by this! 🤔😉 I've looked at the previous threads and the ideas for gaining the 1%'s but I'm pretty limited in what I'm willing to do - after spending years paying off my mortgage and putting together a house fund for renovations, I tend to be a bit more relaxed these days!! 

However, I do want to become debt neutral then negotiate settlements for my very old 0% debts and am currently working towards that so feel that breaking it down like this may help with motivation 😉 I'll put all budget savings (groceries, petrol, insurances etc) to the fund and see how l do!! 

I've got a massive £450 as my 1%!! 😲 My aim is to pay off 10% in 2022! 🙌

MostlyFine

@outoftheviciouscircle thanks again for the thread

My 1% does seem small but I'm hoping to wipe out that chunk plus the next one which will be a similar number before moving on to the much bigger chunks - I think I need the quicker win for motivation! In saying that, I have saved my first 1% and am feeling very motivated. 

MF

Tom_89

Thank you @outoftheviciouscircle, @AdventureWanted and LittleMissUniDebt.

I started this challenge back in 2019, and just today made my final 1% (£139) payment to clear my debt!!!! 

This challenge was a great help to me.  I had this grid printed on my fridge for the past 3 years (yes it looks like it was made by a 5 year old), and it was so satisfying ticking off each 1% debt amount.  I went from having £13971.00 of CC debt across 4 cards to £0 debt today, just before New Year.

I'm sharing this for anyone who is struggling with debt.  The 1% method works.  I had tried to years to shift my debt before starting this method, but kept losing motivation, and my debt would build even higher.  Best of luck to everyone starting out with this challenge for 2022! 

You can do it!!