The 100 envelope challenge is a savings method where you fill 100 envelopes numbered $1-$100. Each day, you randomly pick an envelope and save that amount in cash. After 100 days, you’ll have exactly $5,050.
This gamified approach makes saving engaging and visual, helping people who struggle with traditional savings methods build the habit.
How the 100 Envelope Challenge Works
Basic Setup
- Get 100 envelopes (regular letter-sized work fine)
- Number them 1-100 on the outside
- Shuffle the envelopes so they’re in random order
- Each day, pick one envelope without looking
- Put that amount of cash inside the envelope
- After 100 days, open all envelopes and deposit
The Math
The sum of numbers 1 through 100 equals 5,050.
| Days | Total Saved |
|---|---|
| 25 days | ~$1,262 |
| 50 days | ~$2,525 |
| 75 days | ~$3,787 |
| 100 days | $5,050 |
Average daily savings: $50.50
Why the 100 Envelope Challenge Works
1. Gamification
Random selection makes each day a mini-surprise. You might get $3 (easy) or $87 (challenging). The unpredictability keeps it interesting.
2. Visual Progress
Watching your stack of filled envelopes grow provides tangible evidence of progress. Unlike digital savings, you can see and touch your money.
3. Small, Varied Amounts
Some days are easy ($1-$10). Some are harder ($80-$100). This variation feels more manageable than saving a fixed $50 daily.
4. Built-In Flexibility
Bad day financially? If you draw $95 but can’t afford it, put the envelope back and draw another. Not officially in the rules, but makes it sustainable.
5. Defined End Point
100 days with $5,050 at the end gives you a clear finish line and reward.
Setting Up Your 100 Envelope Challenge
Materials Needed
- 100 envelopes (buy in bulk—it’s cheaper)
- Marker or pen
- Container or box to hold envelopes
- Cash on hand or ATM access
Setup Steps
- Label envelopes: Write numbers 1-100 clearly on each envelope
- Shuffle thoroughly: Mix them so the order is random
- Store conveniently: Keep them where you’ll see them daily
- Set a start date: Commit to when you’ll begin
- Track somewhere: Notebook, app, or calendar to mark completions
Optional Additions
- Color-code by amount range (green for $1-25, yellow for $26-50, etc.)
- Use a tracking sheet to check off completed amounts
- Take photos of your progress for motivation
100 Envelope Challenge Variations
The original challenge isn’t realistic for everyone. These variations make it more accessible.
The 50 Envelope Challenge ($1,275)
Number envelopes 1-50. Complete in 50 days for $1,275 total.
Best for: Those who want a shorter commitment or lower savings target.
The 25 Envelope Challenge ($325)
Number envelopes 1-25. Complete in 25 days for $325 total.
Best for: Beginners testing the method, tight budgets.
The 200-Day Version ($5,050)
Use all 100 envelopes but pick only every other day. Same total, twice the time.
Best for: Tighter budgets needing more breathing room.
The Weekly Version ($5,050)
Pick and fill envelopes once weekly instead of daily. Takes 100 weeks (almost 2 years).
Best for: Those who can’t commit to daily cash deposits.
The Bi-Weekly Paycheck Version
Draw 14 envelopes on each payday, filling them with that paycheck’s cash allocation.
Best for: People who budget by paycheck.
Digital 100 Envelope Challenge
Skip physical cash. Use a random number generator (1-100) and transfer that amount to savings digitally.
Best for: Those who don’t use cash.
Realistic Budget Considerations
Average Daily Cost
The challenge averages $50.50 daily, meaning you need roughly $1,500/month in savings capacity.
| Monthly Income | Feasibility |
|---|---|
| $3,000 | Challenging (50% of income) |
| $4,000 | Doable if expenses are low |
| $5,000 | Manageable with budgeting |
| $6,000+ | Very achievable |
Handling Expensive Days
Some strategies for the $80-$100 envelopes:
- Combine small envelopes: Draw multiple small ones on expensive days
- Skip and redraw: Put back unaffordable amounts and try again
- Split over days: Pay $45 today, $45 tomorrow
- Pair challenges: Do this alongside the 52-week challenge using money from both
Cash Flow Tips
- Withdraw cash weekly based on upcoming envelope estimates
- Keep a cash buffer at home for high-number days
- Align ATM trips with your budget schedule
Combining With Other Savings Goals
Emergency Fund Building
$5,050 makes an excellent start to your emergency fund. Complete the challenge, then deposit into a high-yield savings account.
Debt Payoff
Apply the $5,050 directly to debt. This could eliminate a credit card balance or make a significant dent using the snowball method.
Specific Goal Savings
Perfect for:
- Vacation fund
- New car down payment
- Home improvement project
- Wedding expenses
- Holiday shopping
Investment Seed Money
$5,050 is enough to open and fund a Roth IRA or start index fund investing.
Tips for Completing the Challenge
1. Make It a Daily Habit
Same time every day: morning coffee, lunch break, or evening routine. Habit stacking works.
2. Prepare for Expensive Days
When you draw a high number, immediately plan how you’ll cover it. Don’t let it surprise you at bedtime.
3. Build a Cash Buffer
Keep $200-$300 in “challenge cash” at home. This prevents ATM trips when you draw expensive envelopes.
4. Share Your Progress
Post updates on social media, tell friends, or find an accountability partner. Public commitment increases follow-through.
5. Have a “Why”
Connect the $5,050 to something meaningful. Visualize how you’ll use it. Your reason keeps you going when motivation dips.
6. Track Visually
Create a chart of numbers 1-100 and check them off as you complete each. Watching progress motivates continued effort.
7. Reward Milestones
Celebrate 25%, 50%, 75%, and completion—without spending the savings!
What to Do With Your $5,050
After 100 days of discipline, make the money count:
Immediate Impact Options
- Complete your emergency fund
- Pay off a credit card in full
- Cover upcoming large expense (taxes, insurance)
Future-Building Options
- Open and fund a Roth IRA
- Start investing in index funds
- Contribute to sinking funds
Experience Options (If Finances Are Healthy)
- Dream vacation you’ve saved responsibly for
- Special celebration or experience
- Meaningful gift or donation
Frequently Asked Questions
What if I can’t afford a day’s envelope?
Put it back and draw again, or split the amount over two days. Flexibility keeps you in the game.
Can I do this digitally without cash?
Yes. Use a random number generator and transfer to savings. Less tactile but still effective.
Should I deposit as I go or wait until the end?
Waiting builds excitement but risks loss or theft. Consider depositing weekly or monthly to a dedicated savings account.
What happens if I miss days?
Catch up when you can. The challenge doesn’t fail because of imperfect execution. Progress over perfection.
Is this better than automatic savings?
They serve different purposes. Automatic savings is more reliable long-term. The envelope challenge builds awareness and habit. Many people do both.
Can couples do this together?
Absolutely. Double the envelopes and amounts if pooling resources, or each person does their own challenge toward a shared goal.
Alternatives to Consider
The 52-Week Money Challenge
Save $1-$52 weekly, matching the week number. Totals $1,378 in one year. Read our complete 52-week money challenge guide.
Automatic Savings
Set up automatic weekly transfers to savings. Less exciting but more reliable.
Round-Up Apps
Apps like Acorns round up purchases to the nearest dollar and save the difference.
Pay Yourself First
Transfer savings immediately when income arrives using the pay yourself first method.
Key Takeaways
The 100 envelope challenge offers:
- $5,050 savings in 100 days
- Gamified approach that makes saving engaging
- Visual progress that motivates continued effort
- Flexibility through multiple variations
- Habit building for long-term savings success
- Clear goal with defined timeline
Start Your Challenge
- Get 100 envelopes
- Number them 1-100
- Shuffle thoroughly
- Choose your start date
- Pick your first envelope
- Fill it with cash
- Repeat daily for 100 days
- Celebrate $5,050 saved
The challenge turns saving into a daily game. And games are more fun than budgets.
Written by Usman Saadat. Fact-checked by Maira Azhar.