As the new year dawns, resolutions often focus on fitness and diet, but one crucial area frequently overlooked is personal finance. However, a simple savings hack endorsed by money saving expert Martin Lewis has proven to be a game-changer for many, including one individual who found a surprise £667.95 waiting for them at the start of 2026.
The 1p Challenge: A Simple Path to Significant Savings
The concept behind the strategy is remarkably straightforward. It begins by saving just a single penny on the first day. On the second day, you save 2p, on the third 3p, and so on, incrementally increasing the amount each day for a full year. The beauty of the plan lies in its gentle ramp-up; the most you will ever need to put aside on any single day is £3.65, which falls on the final, 365th day.
By consistently following this pattern, the small daily contributions snowball into a substantial sum. After completing the full cycle, the total saved amounts to £667.95. The key psychological benefit is that the amounts are so manageable, you barely notice the money leaving your everyday account.
How Technology Can Automate Your Savings Success
While the maths is simple, remembering to transfer a different amount every day can be a hurdle. This is where modern banking apps provide a perfect solution. The saver in this case used Monzo's built-in feature for the challenge. Once set up, the app automatically moves the escalating daily sum from your current account into a dedicated savings 'pot'.
For those with Monzo's premium accounts—such as Extra, Perks, Max, or Max + Family—there is the added bonus of earning interest on the accumulating pot. This automation turns a potentially tedious task into a completely hands-free saving strategy, making financial discipline effortless.
Completing the Challenge Without a Digital Bank
Don't worry if you're not a Monzo customer. Martin Lewis's Money Saving Expert website offers a free, downloadable tracker table. You can print this out and physically mark off each day's box as you save, providing a satisfying visual record of your progress.
For a more traditional approach, you could use physical cash. If you have loose change around, you could deposit the increasing amounts into a piggy bank or a sealed jar each day. Alternatively, setting a daily reminder on your phone to manually transfer the funds into a separate savings account is another effective method to stay on track.
Flexible Monthly Alternatives to the Daily Grind
If committing to a daily transfer feels too demanding, you can adapt the challenge to a monthly schedule. This can be a more practical approach for many, aligning with regular pay cycles. The monthly amounts required to reach the same £667.95 total are as follows:
- January: £4.96
- February: £12.74
- March: £23.25
- April: £31.65
- May: £42.16
- June: £49.95
- July: £61.07
- August: £70.68
- September: £77.55
- October: £89.59
- November: £95.85
- December: £108.50
Recognising that December is often the most expensive month, you also have the option to reverse the order. This 'backwards' method allows you to save the largest amounts earlier in the year when finances might be less strained, finishing with a much smaller contribution in December.
The reversed monthly savings plan would look like this:
- January: £108.50
- February: £95.85
- March: £89.59
- April: £77.55
- May: £70.68
- June: £61.07
- July: £49.95
- August: £42.16
- September: £31.65
- October: £23.25
- November: £12.74
- December: £4.96
Whether you choose the daily, monthly, or reversed method, the core lesson from Martin Lewis's endorsed hack is powerful: consistent, small actions can lead to a surprisingly large financial reward. It proves that building a savings buffer doesn't require drastic lifestyle changes, just a bit of planning and automation. For anyone looking to start 2026 with a healthier bank balance, this challenge offers a proven and painless blueprint.
