The $5 Savings Challenge – Have You Tried It?

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5 dollar challenge to save more money. #savingschallenge #personalfinancejunkieHave you tried the $5 Savings Challenge yet?

If you want to save more money and have fun doing it then this challenge might be right for you.

I decided to give this challenge a try because like most people, I HATE being bored.

Even when it comes to improving my personal finances I’m always looking for new, fun tricks and challenges to help me reach my goals faster (before I lose all motivation).

Out of boredom one night not too long ago I decided to search “money challenges” on Pinterest.

I found so many good ideas that I created a special money challenges Pinterest board so that I could go back and try them all later (click on the link above to check out over 20 different money challenges – don’t forget to FOLLOW the board to get updates on more fun money challenges).

One of the challenges, the $5 Savings Challenge, stuck out to me above the rest for a few reasons.

First, I had never heard of it before.

Second, it seemed like it would be worth my time in that I could save a significant amount of money.

Third, it seemed like it would help me to develop another personal finance habit that I’ve been working on (paying with cash).

With those benefits in mind I decided to give it a try. Continue reading to see my results.

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 Why Join The $5 Savings Challenge

I have to be honest, I take the lazy approach to personal finances.

My budget is simple. My savings are automated. I invest in only a few index funds. My financial freedom plan has been reduced to a 1 page checklist. Even my debt repayment plan is nothing to write home about.

My point is in order for me to start a savings challenge, I have to believe that I can succeed with minimal effort.

The $5 Savings Challenge meets that criteria.

How The $5 Savings Challenge Works

Now for the fun!

I have been doing the $5 Savings Challenge for almost five months now and I have saved at total of $305… EFFORTLESSLY!

I plan to continue the challenge until the end of the year and then I will decide what to do with the money.

Most likely I will either (a) spend it on Christmas gifts for my co-workers, (b) use it to make an extra student loan payment or (c) buy a few massages for myself.

Right now, I’m leaning towards the gifts for my co-workers (that just feels more satisfying to me).

Let me know in the comments what you think I should do with the money.

Oh yea…the RULES:

1. Set a time limit.

Decide in advance how long you want to participate in the challenge.

2. Save every $5 bill you get your hands on.

Whenever you get your hands on a $5 bill save it in a special place (I use a clear, plastic wallet…the better to see my money growing).

3. Keep count.

Count your cash periodically to keep you motivated.

4. Add, don’t subtract.

Do not spend any of the $5s until after you have completed the challenge (as determined by the date you set).

5. Tell a friend.

Tell all of your friends about the challenge so they can join in the fun (maybe even get a competition going).

Summing Things Up

When we get bored with our finances, sometimes we have to get creative to make reaching our goals fun again. The $5 Savings Challenge is a fun way to save more money.

Obviously, you will be more successful with this challenge when you make purchases with cash.

I have been trying to eliminate credit and debit cards as much as possible. This challenge has really helped me with that.

I actually want to spend cash now so I can get my hands on more $5 dollar bills. Whereas before, I would mindlessly spend using my cards. One of the benefits of using cash for me is that I tend to spend less when I feel like I’m using “real” money.

Well, that’s it! What do you think about the $5 Savings Challenge? What would you spend your savings on?

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