Nairobi — Whenever we welcome a new year, it is a common tradition for people to set annual financial goals, specifically aiming to save a certain amount of money so as to achieve certain objectives, by the time the year ends.
However, given the prevailing economic conditions, characterized by diminishing disposable incomes and an escalating cost of living, achieving these financial objectives has become a challenge for many.
In addition, the high initial deposit requirements and complex financial jargon that most saving and investing platforms come with, do not make it any easier for people to save for their financial objectives.
Samuel Njuguna, the founder of Chumz, a mobile app that allows people to invest with as low as five shillings, observes that gamifying the investment process through challenges such as the 52-week challenge, can help to enhance the saving culture in Kenya.
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"The 52-week money challenge is a fun way to push people to save money," explains Njuguna.
"It works by setting aside a small amount of money one week at a time, increasing the amount saved every week, until the year comes to a close," he adds.
People could start the challenge at the beginning of the year as one of their New Year money resolutions. By starting small and gradually increasing what they save, they can end up with a significant amount of money for their needs, at the end of the year.
The Chumz app has a 52-Week Challenge, which allows users to either save an incremental amount of money every week for one year, or start with a large amount and reduce it every week.
For example, someone could start with Sh50 in week one, Sh100 week two, Sh150 week three, by the time they get to week 52, they will be saving Sh2600, bringing the total amount of money saved in a year to Sh68, 900, excluding interest.
Alternatively, if they have a lump sum at the beginning of the year, they could start with Sh2600 and reduce it every week, until they reach their objective.
The base amount could be any amount starting from five shillings. This solves the "I'll start next month" problem by making the first deposit very tiny.
The app tracks which week you are on and exactly how much is due, sending timely reminders to deposit funds.
"Completing the 52-week money challenge can help you build confidence in your ability to save consistently," said Njuguna.
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"At the end of the challenge, use your momentum to start another challenge or automatically save a portion of each paycheck," he added.
One can do the 52-week challenge alone, but challenging a friend or joining a group can make the challenge more fun. Plus, you'll be less tempted to bail if you've committed to saving with a team.
Chumz also has other gamified saving options including Mia Kwa Mia, which allows users to save any amount between Sh100 and Sh900 for 100 days, as well as the Vault Challenge which encourages users to lock their funds for a longer period.
The platform is regulated by the Capital Markets Authority (CMA) in Kenya, meaning funds are held by a licensed custodian and managed by professional fund managers.
