Martin Lewis’ popular “1p savings challenge” has helped thousands of people build a meaningful savings pot without feeling the strain of traditional budgeting. One saver has revealed how following the challenge helped them put away £670 in just over a year, but experts are now issuing a warning about a common mistake that could stop others from getting the full benefit.
The challenge, frequently highlighted by the Money Saving Expert founder, is designed to make saving feel manageable by starting extremely small and gradually increasing contributions. While the concept is simple, financial advisers say many people undermine their progress by misunderstanding how the challenge works or by making avoidable errors along the way.
This article explains how the 1p challenge works, how it helped one saver reach £670, why it has become so popular during the cost‑of‑living squeeze, and the key mistake Martin Lewis and experts warn people to avoid.
What the 1p challenge is and why it became popular
The 1p challenge is based on the idea of starting small. Savers begin by putting away just 1p on the first day, then 2p on the second day, increasing the amount by 1p each day for a year.
By the end of 365 days, the daily amount reaches £3.65, and the total saved adds up to £667.95. Many people round this up to around £670.
Why saving 1p feels more achievable than larger goals
Psychologically, saving 1p feels almost effortless. Unlike committing to large monthly savings targets, the challenge removes the fear of failure by making the first steps feel insignificant.
This gradual approach helps people build a habit without feeling deprived.
How one saver reached £670 without noticing
The saver who shared their experience said the biggest surprise was how little impact the daily saving had on their lifestyle. Early contributions were barely noticeable, and even later amounts felt manageable because they increased so slowly.
By the end of the year, the savings pot had quietly grown to £670.
Why the challenge works during cost‑of‑living pressures
With household budgets under pressure, many people feel they cannot afford to save. The 1p challenge counters this belief by showing that saving does not need to start with large sums.
It reframes saving as a daily habit rather than a financial sacrifice.
Martin Lewis’ message about small wins
Martin Lewis has repeatedly stressed that small, consistent actions can make a real difference to financial resilience. The 1p challenge aligns perfectly with this philosophy, proving that reminder‑based saving can work even for those on tight budgets.
Consistency, not income level, is the key principle.
The flexibility many people overlook
One reason the challenge appeals to so many is its flexibility. Savers can start at any time of year, pause briefly if needed, or adapt the structure to suit their circumstances.
However, misunderstanding this flexibility is where some people go wrong.
The common mistake experts are warning about
The most common mistake is trying to “catch up” too aggressively after missing days. Some savers attempt to deposit large lump sums to compensate for missed contributions, which can put unnecessary strain on their finances.
Experts say this often leads to people abandoning the challenge altogether.
Why skipping days is not a failure
Missing a day or two does not undo progress. Financial advisers emphasise that the goal is habit‑building, not perfection.
Treating missed days as a reason to quit is one of the biggest barriers to success.
Another mistake people often make
Some people forget to plan for the later stages of the challenge. While £3.65 a day is still relatively small, it can feel more noticeable if budgets are tight.
Without planning, this stage can catch savers off guard.
Why awareness of the end‑of‑year amounts matters
Understanding how the daily amounts increase helps people prepare mentally and financially. Those who check the schedule early are less likely to feel overwhelmed later.
Preparation makes the challenge feel sustainable.
Where people are keeping their 1p savings
Many savers choose to keep their challenge money in a separate savings account or digital savings pot. This helps avoid accidentally spending it.
Out of sight often means out of temptation.
The role of banking apps and automation
Modern banking apps have made the challenge easier to manage. Some allow automatic daily transfers, removing the need to remember each contribution.
Automation reduces friction and increases success rates.
Why manual saving still appeals to some people
Despite automation, some savers prefer manually transferring money each day. They say it reinforces awareness and provides a small sense of achievement.
The method matters less than consistency.
How the challenge helps people new to saving
For people who have never saved before, the 1p challenge acts as a gentle introduction. It builds confidence and proves that saving is possible, even on limited income.
This psychological shift can be life‑changing.
Why the challenge is not about interest rates
The success of the challenge does not rely on high interest rates. While interest helps, the real benefit comes from behaviour change rather than returns.
The focus is habit, not growth.
What happens after the challenge ends
Many people use the £670 as an emergency fund, holiday savings or a buffer against unexpected bills. Others roll the habit forward by switching to regular monthly savings.
The end of the challenge often marks the start of better financial habits.
Why experts warn against stopping after one year
Stopping completely after completing the challenge can undo the progress made. Financial advisers suggest maintaining some form of regular saving to keep the habit alive.
Momentum is valuable.
How the challenge compares to other saving methods
Unlike traditional budgeting, the 1p challenge removes the need for complex planning. It works alongside other methods rather than replacing them.
It is a gateway rather than a full strategy.
Who the challenge may not suit
People with very unpredictable income may struggle with daily increases. In such cases, experts suggest adapting the challenge or using a weekly version.
Flexibility is encouraged.
Why Martin Lewis stresses adaptation
Martin Lewis has often said that money advice should fit real life. Adapting the challenge to personal circumstances does not mean failure.
Rigid rules rarely work long‑term.
The importance of not comparing yourself to others
Some savers abandon the challenge after seeing others save more. Experts warn that comparison can be discouraging and unhelpful.
Progress is personal.
How social media can both help and hinder
Online communities can motivate savers by sharing progress and tips. However, they can also create pressure to perform perfectly.
Balance is key.
What to do if money becomes tight
If finances become strained, experts advise reducing contributions temporarily rather than quitting. The habit can resume once circumstances improve.
Saving should not cause hardship.
Why the challenge builds confidence beyond money
Completing the challenge often boosts confidence in managing other areas of personal finance. Savers report feeling more in control overall.
Confidence is a hidden benefit.
The warning Martin Lewis supporters repeat
Supporters consistently warn against turning the challenge into a source of stress. The aim is to make saving easier, not another burden.
Stress undermines the goal.
What beginners should remember
Beginners should remember that the challenge is a tool, not a test. Missing days, adapting amounts or restarting is all part of the process.
Progress matters more than precision.
Key points to remember
Martin Lewis’ 1p challenge has helped many people save around £670 through small, daily contributions. The most common mistake is treating missed days as failure or trying to catch up too aggressively.
Consistency and flexibility are what make the challenge work.
Final thoughts
The success of Martin Lewis’ 1p challenge lies in its simplicity. By starting small and building gradually, it proves that saving does not need to feel intimidating or restrictive. For one saver, it quietly delivered £670 without stress or sacrifice.
However, the challenge works best when approached with realism. Missing days, adapting amounts and avoiding pressure are all part of sustainable saving. For anyone struggling to start, the 1p challenge remains a powerful reminder that meaningful change often begins with the smallest steps.