The summer sun may still be shining, but Christmas is right around the corner – and there are just 100 days left to get prepped for the occasion. While you might not want to think about it yet, laying the groundwork now can ease a lot of stress nearer the time, helping you avoid last-minute panic buying and getting into debt.

Last year, almost 43% of UK adults planned to use credit cards for Christmas spending, putting an average of £672 each on plastic. Yet you can spread the cost of celebrations – which many cited as a motivation behind taking on credit – before the big day too, lessening the grim financial hangover that January often ends up being.

In fact, not only can this savings challenge see you putting away up to £2,525 over the next 100 days, it also helps you make saving a habit beyond the festive season; how’s that for a head start on your New Year’s resolution?

The 100-Day Savings Challenge Explained

To start, all you need to do is get yourself a vessel for your cash, or set up a separate account if you prefer to keep things digital. Certain banks also allow you to automate deposits (such as Monzo Pots) which is particularly useful for those who struggle to stick to a plan due to sheer forgetfulness.

A chart so you can tick off what you’re saving when you do it may be handy too, ensuring you know where you are and giving you a daily sense of accomplishment that keeps you on track.

Now, in terms of numbers: today, you’ll start your pot with 50p. Tomorrow, you put in £1, then add £1.50 on Tuesday, £2 on Wednesday, and so on. Each day, raise the amount you save by 50p, watching the total gradually rise to an eventual £2,525.

If you use these amounts, the most you’ll put in on any given day is £50 (on Christmas Eve) – and while that might seem like a lot, the incremental rise eases you in. Plus, when you compare it to the £50 you could easily blow on a single shopping trip, it isn’t quite so daunting.

Savings Schedule Breakdown

If you go up in increments of 50p, this is what your savings schedule will look like…

Total by Christmas: £2,525

That said, the beauty of this challenge is that you can alter the amounts and timings to suit you.

If your income won’t stretch as far, you can use the same method but cut the deposits in half, going up in increments of 25p each day instead and finishing with a total of £1,411.

Alternatively, if you know you’ll be using the cash to buy presents online, you could choose to reduce the length of the challenge. For example, this year Black Friday falls on November 29 – a nice, round 75 days from now – so if you stick to the original schedule until then, you’ll wind up with £1,425.

Alternatively, if you go for the 25p increment option, here’s what it’ll look like…

Total by Christmas: £1,411

Making the Savings Challenge Work for You

Obviously, this savings challenge isn’t for everyone; first and foremost, it can’t magic up money you don’t have out of thin air. But for those who have disposable income yet always end up putting Christmas on credit cards, or folks who need more of a push to get them excited about saving and keep them committed to achieving a goal, it’s worth a try.

Beyond the Savings Challenge: Additional Tips

Martin Lewis, the consumer champion, is encouraging everyone to save money for Christmas and avoid the debt hangover that often follows. He has a few suggestions to help you stay on track:

• Start early: The earlier you start planning your festive budget, the better. Martin urges everyone to avoid “early celebration” and focus on “preparation” instead.
• Don’t plan for perfection: Martin advocates for setting realistic expectations. “Do a budget now and then work out the best Christmas you can have on that,” he advises.
• Think carefully about gift vouchers: Gift vouchers might seem like a good idea, but Martin warns that they’re only a good option if the retailer is financially stable. He suggests that cash is “the ultimate gift voucher” because it’s flexible and usable anywhere.

Conclusion: A Merry Christmas Without the Financial Blues

Who knows – by December 26, you could be celebrating your newfound financially responsible self. This savings challenge, combined with Martin Lewis’s wise words, might just be the key to a Merry Christmas without the financial blues.