What is the $5 Bill Money Challenge?
The $5 money challenge is one of the most simple money challenges I’ve come across and it has the potential to save you a bit of money (especially if you frequently use cash).
Unlike many of the other money challenges, the $5 money challenges doesn’t have a set-in-stone format. To perform the money challenge you simply keep every $5 bill you get back in change. For example, if you spend $11 at Walmart and you hand the cashier a $20 bill your change would likely be one $5 bill and four $1 bills.¬†Instead of pocketing (and later spending) that $5 bill, you place it in a savings account or a storage place (like a jar or piggy bank at home).
The $5 money challenge is simple but how much can you actually save?
How Much Can You Save?
- Many people don’t use cash any more.¬†Most people have switched to using credit and debit cards instead of cash, making the $5 bill challenge difficult.
- Keeping $5 bills could be difficult if you need the cash.¬†If you’re hard-up for cash not spending that $5 bill may not be an option.
- Your willingness to keep cash stashed away.¬†Keeping cash stashed away in the house makes some people nervous so you may not want to keep $5 bills stashed in your home.
Those hinderances set aside, you could save quite a lot of money with the $5 money challenge. Think about it. If you began paying for all of your purchases in cash and save every $5 bill given to you as change the savings will start stacking up quickly. You’ll also become much more aware of how much cash you’re spending on day-to-day purchases.
Alternatively you can also set up a system for savings in your bank account. For instance, for every $40 you spend, put $5 in your savings account. This is similar to the $5 money challenge.
How to Track the $5 Money Challenge?
There are a few ways to keep track of how much money you are saving with the $5 money challenge. When I first read about the challenge the first thought that came to my mind is to keep the $5 bills in a piggy bank or jar. Once a week you can take the $5 bills and count them and put them in an account. This would eliminate the problem with having cash laying around the house.
Also, as mentioned above, you can also set a savings transfer for every $20, $40, $60, etc. you spend. This may also be an easier solution than taking out cash to spend each week and setting aside all the $5 bills. Either way you do it, you’ll be saving a ton of money through the $5 money challenge.
Have you tried this money challenge or any other? What were your results?¬†
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