The '1p challenge' that could save you over £667 by the end of the year

The start of a new year is a great time to look at ways to boost your finances over the next 12 months. That's particularly true if you have struggled to stick to your Christmas budget.

One of the simplest savings hacks involves putting away pennies every day. These gradually accumulate into pounds as the year progresses.

By sticking to the '1p savings challenge', you could amass a useful savings pot worth £667.95 by December 31, 2025. Even if you only saved until the end of November, you would still have stashed away an impressive £559.45, which could ease the burden of buying presents next Christmas.

The '1p challenge' - as it's commonly known - is likely one of the easiest and most well-known methods to build your money pot for winter 2025. It's also an excellent way to develop the habit of saving every day by starting small and focusing on the final outcome.

The best part is that because the daily savings amount in January won't significantly impact your finances, you can easily catch up or start at the end of the month instead - all you'll need to do is set aside £4.96. The only drawback to this savings plan is that the amounts increase as the year progresses.

It might be beneficial to know the amounts due per month and set the money aside as soon as you get paid. Here's how the penny challenge works:, reports the Daily Record.

£4.96

£12.74

£23.25

£31.65

£42.16

June

£49.95

July

£61.07

August

£70.68

September

£77.55

October

£89.59

November

£95.85

December

£108.50

£667.95

To kick off the savings challenge, you simply need to start by setting aside a penny a day. This amount gradually increases over time, so by the end of the year, you'll have saved a tidy sum to start 2026 with a few hundred pounds in your