Every January, the phrase “New Year, New Me” buzzes around as people focus on fitness and healthier living following festive indulgences. But while many invest in gym memberships and better food choices, few consider the financial impact of these new commitments during a typically tight time.
In early 2026, I was pleasantly surprised to discover an extra £667.95 in my bank account—money I had saved throughout the previous year without feeling the pinch. The secret? Monzo’s 1p challenge, a simple savings strategy popularized by money-saving expert Martin Lewis.
Here’s how it works: on the first day, save 1p; on the second, 2p; on the third, 3p; and continue adding one penny each day for 365 days. The largest amount you’ll save in a day is just £3.65, on day 365. By the end of the year, your savings add up to £667.95.
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The beauty of this method is its subtlety. The small daily amounts never feel like a burden, and you won’t have to dip into large sums at once. Monzo’s app automates the process, transferring the exact increment from your current account into a virtual savings pot every day. This effortless routine made saving automatic and stress-free.
Monzo users with premium accounts like Monzo Extra, Perks, Max, or Max + Family can even earn interest on their savings, making it an even smarter approach.
If you don’t use Monzo, don’t worry—other tools can help. Martin Lewis’ Money Saving Expert website provides handy printable charts to track your progress. Alternatively, you could save physically by placing incremental amounts of loose change in a jar daily.
Setting daily reminders on your phone can also help you stick to the challenge. If daily saving feels too demanding, you can adapt the plan by saving monthly instead—adding larger amounts over shorter intervals to hit the same £667.95 target.
To avoid heavier saving in December, often the most expensive month, some choose to reverse the sequence—starting with larger amounts low in the year and lowering them as December approaches.
Whether automated, physical, daily, or monthly, this straightforward savings challenge offers a manageable way to grow your emergency fund or treat yourself without financial stress.