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The VERY simple saving trick that will save you thousands in 2022

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Why you need to try the ‘envelope’ method: The VERY simple saving trick that ensures you always have enough money for vacations and activities

  • A mum has revealed her simple money-saving trick using envelopes 
  • Tracy labelled enveloped with different family activities and the cost needed 
  • During the year she places change into the envelopes and seals once reached
  • It follows after parents were saving thousands doing the 100 envelope challenge










A mum-of-two has revealed her simple money-saving trick using a handful of envelopes.

To lessen the burden of financial pressure ahead of holiday breaks mum Tracy said she places spare change into paper envelopes labelled with different activities.

Tracy, from the UK, wrote each family day out and the amount needed on each envelope – such as £50 GPB ($93.65 AUD) for ice skating or a day at the beach.

Once she reaches the amount required, the envelope is sealed and stored away.  

Tracy said she’s been using the saving tactic for ‘years’ and shared the tip to a popular family Facebook group. 

To lessen the burden of financial pressure towards the end of the year, mum Tracy said she places spare change into paper envelopes labelled with different activities (pictured)

To lessen the burden of financial pressure towards the end of the year, mum Tracy said she places spare change into paper envelopes labelled with different activities (pictured)

‘I always feel intense pressure to do lots of things over the summer holidays and with a limited budget and lots to pay out for it can be really hard,’ she wrote.

‘A few years ago I started these envelopes. I work out some things we’d like to do, work out the cost and write on these envelopes then put them in the cupboard. 

‘Come summer time I can just grab an envelope and know we can go regardless of what’s in the bank. I’m starting early this year. Hope it helps some other families on a budget too.’ 

The budgeting tip is the perfect for beginners and parents alike to potentially save hundreds of dollars. 

It comes after hundreds tried the 100 envelope challenge last year to help save thousands of dollars – which involves labelling 100 envelopes with sums from $1 to $100.

Earlier this year the finance challenge helped Australian mum Michelle pocket more than $5,000 by the end of year. 

The challenge allows you to randomly choose any two envelopes or more from your pile every week and then place the cash into them. For example, if you pick $12 and $76, you will need to place $12 in the ‘$12’ envelope and $76 in the ‘$76’ envelope.

Filling the envelopes over any length of time will leave her with an extra $5,050 within 12 months – and it’s perfect for those who are looking to save money for holidays, Christmas presents or even paying off credit card debt.

A thrifty mother-of-three has taken on the 100 envelope challenge that will help her pocket more than $5,000 by the end of year

Once she deposits the cash into the selected envelope, Michelle then crosses off the number from her DIY chart

A thrifty mother-of-three has taken on the 100 envelope challenge that will help her pocket more than $5,000 by the end of year. The challenge allows you to randomly choose any two envelopes or more from your pile every week and then place the cash into them

‘I’m a mum of three kids and money can get a bit tight, especially now school is going back,’ Michelle wrote in her now-viral TikTok video.

‘The point of the challenge is to put the money in the envelopes. I will be depositing the cash once we complete the challenge.’ 

The mother said two envelopes are usually drawn at random every week.

‘I don’t do this every day. I change it to suit myself and my circumstances. I do it twice a week. Whatever my situation allows,’ she explained.

Once she deposits the cash into the selected envelope, Michelle then crosses off the number from her DIY chart. 

Filling the envelopes over any length of time will leave her with an extra $5,050 within 12 months

For example, she picked out envelope labelled $46 so she needed to deposit that amount in

Filling the envelopes over any length of time will leave her with an extra $5,050 in 12 months. In one of the videos, the mother picked out envelope labelled $46 (right) so she needed to deposit that amount in

Her video has since been viewed more than 140,000 times, with dozens saying they were keen to try out the money-saving method themselves.

Others suggested transferring the funds into a bank account instead of using envelopes – but many pointed out that saving money was ‘hard for some people’. 

‘I am terrible at saving money so this might be smart for me to do,’ one wrote.

The challenge is based on a formula discovered by 18th century German mathematician, Carl Friedrich Gauss.

Gauss noticed if he split the numbers 1 to 50 and 51 to 100 into two groups, he could add them together vertically to get 101.

For example 1 plus 100 equals 101, as does 2 plus 99, 3 plus 98 and so on until 50 plus 51.

The total of the two groups is therefore 50 multiplied by 101 – 5,050 – which is the amount you can save by completing the envelope challenge.

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