Moni posted this a few years ago. We've done it for the past 3 years. We bought our sofa and loveseat using this plan.

Last year we used some of the money and didn't get back on track. This year we're determined to do a better job.

It's a nice painless way to save up some money. Sometimes it's easier to start with the higher end money first, e.g. $52 on Jan. 1, $51 on the 8, etc, and then it's just a bit of money at the end of the year at Christmas.j

We made it thru about half way and then messed up and didn't get back on track. We do have several hundred dollars in the jar though. Might try again this year and do it backwards so it gets easier when we're forgetting about it again!

Idstarr, we just bought another house and we're going to be doing the same thing - got a 30 year mortgage with the intention of paying it off in a few years but having the lower amount due each month, just in case. I love the idea of when the house is paid off to keep paying the amount into a savings account. : )

Another variation on the 30 year mortgage. 13 payments a year. Take the 13th and divide by 12. Add that every month. I think it pays off the mortgage in 17 years.

That’s a super super smart idea Idastarr. I’ll see if that or at least something similar is doable in our budget for this year. We have 2 new car payments as well so I’ll have to see what I can figure out. Even a biweekly principal payment would pay it off in a more reasonable amount of time.

Jasdip, thank you for remembering it was Moni. I hope she sees this thread because her suggestion really has set us into a very positive direction for saving. I remember the idea of going in reverse. For me it was getting in the habit of making the transfer, but when starting on the first week, if you take the 1378/52 and transfer 26.00/week instead it comes out with the same result and it can be done automatically. Life’s challenges can get in the way, but I’m glad it’s not keeping you from giving it another try.

For the last 15 years we worked, every time my husband or I got a raise he would increase the amount automatically deposited into savings at the credit union or his 401k.. We continued to live on the same amount but built up a nice savings account.

Congratulations, lukkiirish and others who have developed a savings plan, and at least begun to implement it, which the 52-week one helps to achieve.

Another variation, as I and perhaps others have suggested in earlier years, was to put the numbers from 1 to 52 into a hat and draw one out each week, then depositing that amount into the savings account.

It tends to make a person try a bit harder to build a cushion of money available, in case the $45 ... or $52 ... item might show up next week.

I like the idea of delaying impulse purchases, as often some extra thought tends to shift the priority downward somewhat.

Grandma (Dad's side, who lived with us when we were kids) used to say that a penny saved was a penny earned .. but she was wrong (unless, in Canada, your annual income is around $11,000., in which situation you don't have to pay Federal tax [probably no Provincial, either]).

Most of us, if we're in 25% tax bracket, must earn $1.33, then pay the 33 cents income tax, to have the $1.00 available to consider as savings.

Good wishes with your savings plan - it'll help you retire early (whether that's a voluntary one, or imposed, such as when you suffer layoff, company bankruptcy, or for whatever reason).

ole joyful

for a30 year mortgage: get an amortization schedule at settlement. make one extra principal payment each month and your mortgage will be paid in 15 years... will save 15 years of interest.

the beginning of the schedule is the lowest amount, so easy in the beginning, kind of like the example above..

Joyful, your posts always make me smile. Thank you. I like the hat idea. I think for those who need to mix it up a bit, it could be fun. Me, I’m a procratinator, I need to not have to think about it and just watch it grow. LOL.

Hi lukki,

Wondering what figure might come out next gives one some extra incentive to build a bit of a cushion, saving a bit more each week than the next known-in-advance figure would require.

A little extra incentive to follow the important money management ...

"spend less than you earn"

basic advice.

ole joyful

Making contributions to a tax-favored retirement arrangement - whether a 401 (k), a 403 (b) for employees of governments or non-profits, or to one of the flavors of IRAs, will provide much greater financial benefit than using that same money to accelerate a mortgage's repayment.

Elmer, true but we already max out the various retirement plans available to us, so...

I do the same thing. I have a Tangerine account that is linked to my regular bank account. I was putting $26.50 a week into this account for a few years and used it to buy gifts for Christmas. What I didn't use, I put into any debt I accumulated. But I changed it up this November. My husband was finally paid out for his car accident, so we paid off the house, paid all our debt, put the remainder into 2 different term deposits. I now put the $26.50 a week into an RSP through the same online banking service. I also put $25 every 2 weeks into another account through them for my grandson. That kid has more money than I do now.... ;)

As for the paying off the house faster conversation: when I bought my house I paid my mortgage monthly for 10 years. Stupid!!! I changed it to biweekly, which I did for five years. Then I decided to change it up to weekly. You pay less interest on the principal and by paying bi-weekly and weekly, you make extra yearly payments. Then a few years back I thought I was thisclose to paying off the house. Saw my amount left and almost cried. So I sat down with pen and paper and calculated what we need to live off of if I increase my weekly payment. I made a few SMALL lump sum payments, then added extra money to my weekly payment and knocked off four years! I had 57 weeks left on my mortgage when my husband got his payout. Our "fine" for paying off the house early was only $89.05. I've been mortgage free about 5 weeks now.

Congrats Debby-ab and husband. Doesn't it feel great knowing you don't owe anything!!

ldstarr, if you're maxed out, then keep paying the mortgage interest (deductible) and put your savings into muni bonds or bond funds (not taxable). That's still better, still offers tax-free compounding of income.

The picture changes somewhat with the increase in the standard deduction for next year for those with modest housing costs who may not be itemizing going forward. Until the tax law gets changed back (which it likely will).