I’m not sure about you guys, but I am always looking for new ways to save money. It is SO important to have a little cash lying around in case of emergencies, but a lot of times it seems it’s hard to FIND that money! Here’s an inside scoop on a challenge that could end up helping you save THOUSANDS of dollars… it’s called the $5 Savings Challenge.
The 5-Dollar Challenge
About a year ago, my friend and her husband were challenged to save EVERY $5 bill that came into their possession. The rule is simple… if you’ve got $5, it goes into a jar and you can never count the cash.
For my friend and her hubby, the goal is that in a few years (maybe even in 1 year), they will open up the jar and use the money to take a trip to Ireland to visit the places where his ancestors are from.
Their family did not have the budget for a vacation, BUT by doing this, they would be able to slowly save up for a pretty incredible vacation with just her and the hubs. Sounds great to me!
Now, for the sake of the post, I asked her to break the rule and count her cash! She was FLOORED when she discovered that in just 10 short months, they socked away $1365! I was SO shocked and excited for them!
My friend told me, “We really do not use cash all that often, but the little bills have added up and we are a little over halfway there! And to be quite honest, we have not even noticed it in our budgeting. We have still had all we needed to pay our bills and still live comfortably.”
The $5 Challenge is an Easy Way to Accumulate Cash
Guys, this is such a simple and easy way to slowly save while you are busy paying off debt or living paycheck to paycheck! Her story inspired me so much that I am going to give it a try!
Here is another amazing 5 dollar challenge result/success story found on the blog Life Hacks:
That person saved over $3,000 in just a year by stashing away all their $5 bills. That’s insane! I’m telling you, you can do this!
Why You Should Do the $5 Saving Challenge
- It will help you be more conscious of how you spend cash.
- Don’t use cash? Consider using it for all your “extras” each month.
- That $5 bill means one less drink at Starbucks or not getting dessert when you go out to dinner.
- Rather than hanging on to coins, do it with your Lincolns!! EVERY $5 BILL IS OFF-LIMITS!
- Develop a new pattern with your money… create a pattern where you stash every five dollar bill. As you create this simple money saving habit, you may find that saving your money instead of buying frivolous things will help you accumulate more wealth over time! Having self-control with your money rolls over into so many other aspects of your life.
- Patterns = Habits = Lifestyle
- This challenge is a FUN & EASY way to save. Without even noticing it, you will be making smart financial decisions. The impact of this challenge is far greater than the effort you will put into it.
How to Start the $5 Challenge
It’s crazy easy to start! Just grab a piggy bank, jar, or box and start saving. Each time you get a $5 bill, stick it in your savings jar and never think about it again.
To make this challenge even more fun, pick a reason for your saving. My friend has a paper taped to the outside of their jar that says, “Ireland Fund” (see the cute pic above). So pick something! Get your spouse to do it with you… if they aren’t game, then do it yourself and pick a fun goal! Here are a few ideas:
- Emergency Fund (Dave Ramsey recommends starting with $1000 before you start working on debt)
- A vacation (I’ve been wanting to go to an all-inclusive resort!) – you could treat you and your spouse to an amazing weekend getaway or take the family on a Christmas vacation!
- A makeover in your bedroom or a bathroom remodel
- New car
- Pay off your student loans or credit card debt
And for those of you who can’t turn down a dare, I dare you to not only save every $5 bill you get but also, save $5 from each paycheck! Or anytime you get paid in any form! (Refund, gift, rebate etc.)
This savings challenge works so well because $5 is so small that you won’t even notice it’s gone. However, once you open up your jar a year from now (or longer), you will be AMAZED at the results.
No matter the cause, I invite you to start this 5 dollar challenge and let us know A YEAR from now how much you’ve saved! I promise you that you will see REAL results!
Want to join me? Leave a comment below and tell me what you’re going to do with your cash!
