Try a $5 Challenge To Bulk Your Savings!
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It’s no secret that saving money is getting harder by the day. But the good news is you can bulk your savings faster than you think by saving small amounts consistently. The key is to budget for it and make it fun! Money saving challenges are the best way to save money because it holds you accountable and makes it enjoyable to do.
The $5 challenge can be done in a variety of ways and which challenge you choose will determine just how fast you boost your bank account. Let’s dive into the different $5 money savings challenges you can try!
Top $5 Savings Challenges To Try!
Save Every $5 Bill Challenge
If you are a cash user, then this is one of the easiest ways to save money. You simply save every single $5 bill you get. So, whenever you get change you will be hoarding those $5 bills like a chipmunk collecting nuts for winter.
You can use a piggy bank or simply make a $5 challenge envelope to keep your cold hard cash in.
2. 52 Week $5 Challenge
If you are super determined to save money this year, the 52 week $5 challenge is the way to go. For this challenge you save $5 your first week, and add an additional $5 every week going forward. So, week one is $5, week two is $10, week three is $15, and so on. When you finish at 52 weeks, you will have a whopping balance of $6,890!
This is an awesome $5 challenge for anyone trying to save a decent emergency fund or even working on a down payment for a home.
3. $5 A Day Challenge
Daily savings habits can help you save consistently. If you save $5 everyday, you will save $1,825 in just a year. That’s a great way to save for a starter emergency fund. It may be easier to save weekly if you are going to deduct it from your paycheck. You would need to set aside $35 a week to save the same amount.
How to Boost Income to Make the $5 Challenge a Breeze
You may be thinking, “How am I supposed to save anything when I am barely making it now?” Well, there are a few things you can do to boost your income so you can complete the $5 savings challenge successfully. Give these simple tips a try to help you save:
Cut Expenses
One of the easiest ways to boost your income is to reduce your expenses. If you can drastically cut costs, that is great, but even small splurges add up. For instance, monthly subscriptions that you don’t use or need. These can add up fast and would make saving for the $5 challenge much easier.
If you think it doesn’t make that much of a difference, it may surprise you that a survey conducted by C+R Research found the average amount spent on subscriptions was $219 per month in 2022. That adds up to $2,628 a year! Comb through your account statements and see what you can cut from your budget.
Another small expense you can cut if you're a coffee lover is to stop hitting the coffee shop daily. The average latte costs around $4.16. That adds up to over $1,000 a year if you drink a latte a day out. Pop over and grab the free “Save a Latte” Money Savings Tracker and use it to work towards your $5 challenge!
2. Start a Side Hustle
If you really want to save and shoot for the 52-week $5 challenge, then consider starting a side hustle. There are plenty of cool side hustles to choose from such as pet sitting, freelance writing, virtual assisting, flipping items, etc. You can also try something like delivering food and orders for places like Doordash.
With a side hustle, you can bring in hundreds or even thousands of extra dollars a month!
3. Ask for a Raise (If it’s time)
Have you been with your employer for a long time but haven’t had a pay increase? It may be time to ask for a raise. However, you want to do this at the right time. For instance, if you have a great track record as far as attendance, have taken on extra responsibilities, or are the go-to person when something needs to get done.
You also need to do some homework. For example, know your worth and what the competitive wage is for your position for the location you are in. Use a salary calculator like this one from Glassdoor to determine the average pay for your position. An average pay raise is about 3%, but if your duties have increased, then you should try for more. Remember to be graceful and professional when asking for more money.
Try a $5 Challenge to Save Money with Ease!
If one of your goals this year is to save more money, then you should definitely try a $5 savings challenge. It will make it much more fun and help you track your savings so you hit your goal.
Remember that a little goes a long way. So, start small and grow your savings more as you increase your income and lower expenses. Make sure you grab the FREE SAVINGS TRACKER BELOW!!!