The $5 Savings Plan – have you heard about it? It’s the savings revolution that’s been making rounds in the blogosphere. I thought it was time to bring it to your attention because apparently, it works. I can’t tell you the number of pins I’ve seen on Pinterest, so I finally found the time to satisfy my curiosity about it.
So what exactly is it?
It’s pretty self-explanatory, but let me lay it out for you. Whenever a $5 bill comes into your possession, you sock it away in a special jar or envelope. Over time, the bills add up, and voila, you have a mega savings account without a ton of work. The more you use cash instead of credit to spend, the more you will save up.
So if you’re going to be hoarding $5 bills, what is all that money going to buy you? For some added motivation, here’s an idea of your annual reward:
• If you accumulate one $5 bill every week, you’ll save $260 a year.
• If you sock away a bill every other day, you’ll have $910 to show for it at the end of the year.
• If you’re really diligent and collect one bill a day, that’s $1,825!
I always think to myself that when I was younger, I could never find an extra $2,000 in the budget for anything. With the $5 savings plan, I think I could make it happen. If I saved that kind of money, I could take my family on vacation (or a vacation for just me and my husband), buy everyone really nice Christmas presents, throw my son an extravagant birthday party, or put a down payment on a car for my daughter! Or if I was going to be super financially responsible, I could invest it for retirement.
The possibilities are endless and I’m going to give this a try. Have any of you heard of or tried the $5 savings plan? Let me know how it went for you! Please post a comment and don’t forget to subscribe.