I haven't found a really detailed challenge I can view for this, so I thought I'd make one of my own roughly based on the TS2 one also on this site.
Story is the same as always but I'll repost it in my own words.

You've been admitted to the asylum, and you psychiatrist has informed you of a way to prove your sanity. You must fulfill the goals she has provided you and in turn, you'll be able to leave and start a life for yourself! (I might make a challenge that's post-Asylum Challenge if anyone wants.)

Requirements (Sims)

7 Young Adult/Adult Sims you will not be playing (you can choose the ages between those two and appearance.)
Your main sim MUST be a young adult. Any appearance is fine, customize to your leisure.

Traits: All must have insane, your main sim must have loner, the remaining 7 require gloomy, and the remaining traits are free to choose. (I recommend skill-based ones to help with one of your main goals.)

Goals

1. You must reach the top of one career, your choice.

2. You must max at least 2 skills.

3. Keep everyone alive and as happy as possible.

Points Chart

Point wise, it's fairly simple and totally optional.

Each sims death -20 Points
Each sim sad -5 points
Each sim extremely uncomfortable -1 Point

Each sim happy +5 points
Each sim fine +1 point
Each skill point +10 points
Each sim alive at the end +2 points

Starting points: 250

Building The Asylum

You CAN use cheats for building. For a quick money cheat, you use "testingcheats true" and then "Money amounthere" to get an exact amount, this can also be used to subtract funds in the beginning of the challenge.

No more than one item for each skill (Exception is a bookcase you may have one with up to one cope of each skill book.)
5 beds maximum and delete one for any deaths you may face (if any.)
Only 1 Toilet, 1 Bath, 1 sink in the whole house, and 1 Shower. A combo counts as one of each.

No moodlet-affecting decorations outside of "Well-Decorated." I'm fine with that.
No computers, they have phones, and I'm going to allow those. If you'd rather them not use them, it is preferred for the sake of the challenge.

(I might make a house for this challenge if anyone's interested and to lazy to make one like I usually am!)

Kitchen Requires a fridge and a stove, but no fire alarm/sprinkler system.

No arcade machine, as awesome as it is.

One TV, 5 Chairs, one nappable piece of furniture in the whole home.

Rules

Once you start the challenge, no buying new items beyond decorations unless it is to replace an item.
No moving anything anywhere, like a door to block a room.
No looking at other sims. You can click on them if you can't tell whether they're uncomfortable or very uncomfortable for points, but otherwise let them be.
Start with (Once you're done building) 500 Simoleans.

Any questions leave below for me to edit this as needed, this is my first ever attempt at making any challenges, so I thought a remake would work!
Enjoy and tell me how you do at it!

Hi! I was looking for this challenge for TS4, and I've found it. Thank you! Just one little question: what should we do with Aspiration?

Oh my gosh yes. I loved this challenge when I did it in Sims 3 but I never really got to finish it because my laptop was getting too old to keep running sims 3 and there were a lot of problems/glitches. I definitely want to do this. Thank you.

I'm seeing this so late I'm sorry aa-

But Aspiration wise you can really do whatever you feel fits your sim, I never felt the need to be picky with it since the challenge is already fairly difficult!