Is The '100 Envelope Challenge' Actually A Good Way To Save Money?

From loud budgeting to girl math, TikTok is an endless source of trends and information about personal finance.

A particularly quippy one that has taken hold is the “100 envelope challenge,” an approach to saving money that uses cash and envelopes to gamify the experience.

So what exactly is the 100 envelope challenge and how does it work? We asked personal finance experts to break down the method, as well as the benefits, downsides and everything else you should know before trying it out.

What is the 100 envelope challenge?

“The 100 envelope challenge is a viral money-saving method where you number 100 envelopes from one to 100,” said Jack Howard, the head of money wellness at Ally Financial. “Each day, you select a random envelope and insert the corresponding dollar amount to be tucked away until the end of the challenge. So, if you pick envelope #32, you should put $32 dollars in the envelope.”

At the end of 100 days, you should have a total of $5,050 in cash set aside. The challenge can also progress linearly instead of randomly. The alternative approach would be to start with envelope #1 on the first day and put aside $1 then $2 into envelope #2 the next day, $3 into envelope #3 and so on.

“Popularized by TikTok, the 100 envelope challenge is essentially a way to make saving money more approachable,” said Courtney Alev, consumer financial advocate at Credit Karma.

Having to essentially “pay” an envelope every day might encourage you to cut back elsewhere in a way that feels more natural and seamless. You can also adjust your totals to fit with your personal savings goals.

“If putting away that much cash is not realistic, especially when you’re entering the double digits, you can customize the amount per