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$5 Bill Money Challenge

By , January 24th, 2017 | One Comment

Money challenge
I was searching the web for new money challenges about a week ago and stumbled upon something that a lot of people were talking about on social media: the $5 bill money challenge.

Many of you may have heard of the 365 day money challenge, the 52 week money challenge (and its alternatives) and even the 12 week money challenge. Have you heard of the $5 money challenge though?

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?

Money challenge
The amount of money you can save using the $5 money challenge may vary. The amount you save with the challenge may be hindered by a few things:

  • 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? 

Photos: 401(K) 2012 and Clip Art Kid

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