Financial guru Martin Lewis is throwing his weight behind a classic savings strategy that could see Brits pocket over £650 by the end of 2026. The Money Saving Expert founder has highlighted the '1p Challenge' as a manageable way to build a substantial nest egg, starting from just a single penny.
How the 1p Savings Challenge Works
The concept is beautifully simple but remarkably effective. You begin on 1 January 2026 by saving just 1p. The following day, you put away 2p, then 3p on 3 January, and so on, increasing the amount by one penny each day. By the time you reach 31 December 2026, you'll be saving £3.65 on the final day.
If you maintain this gradual increase throughout the entire year, your total savings will reach an impressive £667.95. The beauty of the method lies in its gentle start, making the habit easy to form before the daily amounts become more significant.
Three Methods to Make the Challenge Work for You
Martin Lewis and financial planners suggest several practical ways to stick to the plan. You don't need a complex system; consistency is key.
1. Use Phone Reminders: Set a daily alert on your smartphone. This acts as a simple nudge to transfer the day's amount, ensuring you don't forget even after a busy day.
2. Set Up a Standing Order: For a more automated approach, you can arrange daily or weekly transfers into a dedicated savings account. Be aware that setting up daily payments might require frequent banking logins, so a weekly top-up calculated from the monthly total may be easier.
3. The Traditional Jar Method: Go old-school with a piggy bank or a large jar. This offers a visual reward as your coin mountain grows. However, with the decline in cash use, sourcing the exact coins daily might be a slight hurdle for some.
Monthly Breakdown for Catching Up
Life can get in the way, and you might miss a day or two. The good news is the challenge is flexible. If you fall behind, you can make a single monthly payment to catch up. Here is the cumulative amount you should have saved by the end of each month in 2026:
- 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
This monthly view is a fantastic safety net. For instance, if you stop in November, you'll still have saved over £500, providing a welcome financial buffer for Christmas expenses.
Martin Lewis explained the maths on his ITV show, stating the method results in £667.95 in total. This challenge, which has gained popularity over several years, proves that small, regular contributions can lead to a significant sum without feeling the pinch. Starting your savings journey in January 2026 could be a powerful New Year's resolution with a very rewarding outcome.
