If you’re paying for something at the register with cash and the cashier hands you a $5 bill, put it directly into your savings account and pretend it’s not even there. Five dollars can add up quickly. According to The Penny Hoarder, putting aside two $5 per week can add up to $520 in savings after a year.
However, the key to sticking to this savings challenge is to separate it from the rest of your spending money. The Penny Hoarder said that most people who participate in this challenge put their bills in jars, envelopes or shoe boxes. If you don’t want to keep it around the house, you can make weekly deposits into a savings account. Your savings will be insured, and you can also earn interest.
You can still do the five dollar challenge if you prefer to pay with a credit or debit card.
The Penny Hoarder said that when you make a purchase with a card, you can think about what change you would have received if you paid in cash. For example, if the total was $14.76 and you pay with a $20, you’re likely to get a $5 in change. Another option is to transfer $5 into your savings account whenever you use your card or make a specific purchase, like buying groceries.
Five dollar challenge participants are sharing their success on TikTok and Youtube. TikTok user Do It All Diva Budgets saved all of her $5 using the cash envelope system. In a TikTok video, she saved $250 and put it towards paying down debt, saving for vacation and redoing her home office.
The Penny Hoarder noted that no matter how long you do the savings challenge, it’s good to have a plan for what you’ll do with the extra money. Having an end goal can help you stay on track.
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