Every January, the phrase ‘New Year, New Me’ inspires many to focus on improving their health and fitness after the festive indulgences. But while commitments to the gym and cleaner eating are common, the financial impact of such changes often goes overlooked—especially when budgets are tight.
That’s why, at the start of 2026, I was thrilled to find an extra £667.95 in my bank account—a sum saved so gradually and effortlessly that I barely noticed the money leaving my daily balance.
The secret? Monzo’s 1p Challenge, a clever savings strategy endorsed by financial expert Martin Lewis. The principle is simple: save 1p on day one, 2p on day two, 3p on day three, and continue increasing by one penny each day for a full year.
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By the last day, you only need to set aside £3.65, yet over 365 days, this method accumulates a substantial £667.95. Because daily amounts are small and predictable, it removes the pressure of making large withdrawals and seamlessly fits into everyday spending habits.
What made the process even easier was Monzo’s automatic transfers. After a quick setup, the app moves the incremental savings from my current account to a separate digital ‘pot’ each day—no manual effort required. Plus, with premium Monzo accounts like Extra, Perks, Max, or Max + Family, you can even earn interest on these savings.
While I found Monzo incredibly helpful, this challenge is flexible. Martin Lewis’ Money Saving Expert website provides a printable tracker to mark off daily savings progress. Alternatively, you can physically save coins in a jar, set phone reminders to transfer daily amounts, or adjust the challenge to monthly savings if daily deposits seem overwhelming.
For example, saving a fixed amount each month toward the £667.95 goal can be more manageable. Another trick is to reverse the order of saving—starting with larger amounts early in the year and easing up during December when expenses typically peak.
No matter your approach, this simple, gradual saving method makes building a tidy financial cushion achievable without stress or sacrifice.