$5 Savings Plan...

[disney4us2002]

I figured I'd give this a try. I don't use cash a lot but since the atm only gives $20s, I figure I can get a $5 in change from lunch every week or so at least. It'll be fun to see what it all adds up to after a couple months. Also, we do a huge water bottle change jar and I never spend change. Every time I break a dollar, the change goes in the jar.

 

[mdrob214]

There was an article some time ago about this http://www.boston.com/news/local/ar...reative_savings_5_can_get_you_at_least_12000/ and someone posted here in the Budget Board. I tried it and it works. BUT

You have to be someone who spends cash anyway. In my budget, I get a certain amount of cash each week. With that I pay for things like eating out, coffee, running in for a gallon of milk, giving my kids money for _______, etc., pedicures, etc. It's basically my misc/mad money, not for my usual budgeted items like groceries or the like.

You have to be disciplined. Don't spend those $5 bills! I put mine in a separate section of my wallet so I didn't even see them. When I got home, I put them in an envelope in my secret spot at home.

You can't just go get more cash! Stick to your budget. If you run out because you got a bunch of fives, then you wait til next week. It may be difficult for some to follow this.

The first year I did this, Aug 2008-July 2009, I saved about $1000. The second year I didn't do quite as well, but close--it was about $900. I have "sort of" done this since then. I didn't have a trip or other specific thing to save for, so it made it a little more difficult without the motivation!

It really stinks when you go to the drivethru at Sonic for a drink, pay with a $20, and get 3 fives back in your change! However, it made me think twice a couple of times, about spending that on drinks.

(oh, and even now, if I have cash left at the end of the week--it doesn't happen often!--I put it in my Disney envelope)

 

[vegasnative]

This is not a real savings plan if you are robbing Peter to pay for Paul.

You take $100 cash out of the bank to buy groceries for the week, per your budget. You stop at the grocery store for a few items and pay cash. In your change you find a $5, so you put in into a jar. You do this three more times before the week is out. At the end of the week you have $20 in the jar but find out you are out of money for groceries and do not have enough food to last until the next $100 draw.

Off to the bank you go and you take out just $20 to buy milk, bread, eggs, fruit and veggies. This takes all the $20.

At the end of the week you spent $100 on groceries and put $20 in your jar.

You took out $120 from the bank.

You did not save any money but just moved money from the bank to a jar. This is funny money accounting. It might make you feel better thinking you have extra money to spend but you do not. You are now overspending because of that "found" money.

The best way to save it by a budget. Each pay period you put $X into long-term savings. $Y into short-term savings. $Z into the vacation/movie/fun money savings.

I agree with the above. It doesn't sound like the greatest savings plan... if you want to save, take a certain amount out each week... this $5 thing could end up hurting you in the end if you don't have enough at the end of the week. Sometimes my bank pays me out in $5 bills... so all of my grocery budget would go in a savings envelope

I understand what you are saying....but I certainly hope that people don't take this as the way to save for retirement or emergency funds. I think it is more to curb impulse spending, and stash a few bucks away. Very similar to the change jar.

 

[vegasnative]

We are on a cash budget for groceries, entertainment & clothes. All bills (car payment, mortgage, utilities I pay online). I take out a set amount of cash from the ATM each Monday and that has to last us until the next Monday. So I wanted to give this a try. I started on Monday, Jan. 30 & I have $15. What I did so I didn't short myself was at the end of the day I looked in my wallet, and took out the $5s. If I spent $20 and got a $5 in change but still had more shopping to do I could use that $5, but at the end of the day it went into my jar.

 

[2girls4me]

I agree it's not the best savings plan. I started on the 27th and have $35 saved. Not a huge amount, but if I find myself going to the ATM over and over, I'll scrape it and just use the cash.

 

[goofyredraider]

We are on a cash budget for groceries, entertainment & clothes. All bills (car payment, mortgage, utilities I pay online). I take out a set amount of cash from the ATM each Monday and that has to last us until the next Monday. So I wanted to give this a try. I started on Monday, Jan. 30 & I have $15. What I did so I didn't short myself was at the end of the day I looked in my wallet, and took out the $5s. If I spent $20 and got a $5 in change but still had more shopping to do I could use that $5, but at the end of the day it went into my jar.

Basically, I do the same thing. I take out a certain amount weekly, and that is my budget for the week. I don't do the $5 method, but $1+coin change. I empty it daily into the jar. I make my list and do my main shopping that same day. The leftover is what I have for the week.

Oh, and I don't keep it hanging out in the jar. Once I get a "decent" amount, I take it to the bank and deposit it in the vacation or savings account (depending on what I have planned for it).

And yes, I realize you could just "save" that $$ outright, and I do try to move a set amount weekly into savings....but this method is fun....partially because I know I *can* spend that amount or those extra $1 bills....but I don't. It does help me be more conscious of my spending and makes me want to save more.

 

[disney4us2002]

Basically, I do the same thing. I take out a certain amount weekly, and that is my budget for the week. I don't do the $5 method, but $1+coin change. I empty it daily into the jar. I make my list and do my main shopping that same day. The leftover is what I have for the week.

Oh, and I don't keep it hanging out in the jar. Once I get a "decent" amount, I take it to the bank and deposit it in the vacation or savings account (depending on what I have planned for it).

And yes, I realize you could just "save" that $$ outright, and I do try to move a set amount weekly into savings....but this method is fun....partially because I know I *can* spend that amount or those extra $1 bills....but I don't. It does help me be more conscious of my spending and makes me want to save more.

This is what I'm finding. More than once I have had a $5 and wanted to buy a Starbucks, but instead I decided to keep the $5 for my envelope. Saved calories can't hurt either, lol!

 

[aprilgail2]

I've been doing that for awhile with change, ones and fives- I recently took it all to TD bank and deposited it all-over 1,000.00 which will be used in July for our Disney trip!

 

[vegasnative]

Oh, and I don't keep it hanging out in the jar. Once I get a "decent" amount, I take it to the bank and deposit it in the vacation or savings account (depending on what I have planned for it).

And yes, I realize you could just "save" that $$ outright, and I do try to move a set amount weekly into savings....but this method is fun....partially because I know I *can* spend that amount or those extra $1 bills....but I don't. It does help me be more conscious of my spending and makes me want to save more.

I think you hit it here. Some have mentioned it's not a great way to save....well yes that is true if your trying to pay debt or save for retirement but this is really just to have a little stash. I was thinking about what a previous poster said about how it would be tempting to take that money and go to yard sales with it....well that would be a good use for it, I think, if that's what you like to do.
It's just a fun way to create a little stash money. You could set a small goal and when you reach that goal go get yourself a treat with that cash. That type of thing. Or you can make it a bigger goal, and say when I reach X amount I'm taking the fam to Disney. So no its not the way to save 'real' money, but yes it's a fun way to save for a rainy/fun/yard sale kinda day. Also, if your trying to reach a large amount it would be a wise idea as a previous poster suggested, when the jar gets full, take it to the bank. We have a coin jar also that we have been doing for 15 years, and whenever it gets full I take it into the bank and it gets transferred to Ing for our vaca savings acct. Probably not the best idea to have tons of money laying around the house.

 

[kadesha]

I think I'm doing well with it, I've got about $30 in my box so far. And I opted for a box so I couldn't see through it and be tempted all the time.

I don't think it's meant to be a very serious saving plan, as some have made it sound. For me, it's saving extra money. I'm not taking anything away from paying bills, and if I found that I couldn't pay my bills I would certainly use what's in the box. I see it as more of a self control tactic to control needless spending. For example, instead of using 5's to buy breakfast this week, I ate at home and put my money in my box.

 

[goofyredraider]

I think you hit it here. Some have mentioned it's not a great way to save....well yes that is true if your trying to pay debt or save for retirement but this is really just to have a little stash. I was thinking about what a previous poster said about how it would be tempting to take that money and go to yard sales with it....well that would be a good use for it, I think, if that's what you like to do.
It's just a fun way to create a little stash money. You could set a small goal and when you reach that goal go get yourself a treat with that cash. That type of thing. Or you can make it a bigger goal, and say when I reach X amount I'm taking the fam to Disney. So no its not the way to save 'real' money, but yes it's a fun way to save for a rainy/fun/yard sale kinda day. Also, if your trying to reach a large amount it would be a wise idea as a previous poster suggested, when the jar gets full, take it to the bank. We have a coin jar also that we have been doing for 15 years, and whenever it gets full I take it into the bank and it gets transferred to Ing for our vaca savings acct. Probably not the best idea to have tons of money laying around the house.

Exactly! In in a way, it is a neat way to save without "trying" too hard. It sounds corny, but I get excited when I get $1 bills as change now. It adds up quickly, for sure!

 

[patsal]

Change and $1 bills, but $5 is just too much money to keep pulling from my change. I only have $200 in spendable cash every other week, if I took out the $5's I'd be in trouble!

I do have $25 auto deducted every two weeks form my pay. I have not touched the account in 8 years I have a surprisingly high balance there!

I did the add $10 to the mortgage payment trick back when we bought our house 12.5 years ago. I was floored when I got my end of the year statement this year and discovered I only I have two more mortgage payments left! (BTW it isn't $10 more per payment so don't get confused!)
The first year it was $10 extra then add $20 more the next year, then $30 more the next year, etc.

 

[disney4us2002]

PLEASE NOTE THIS IS A BUMPED THREAD FROM 6 WKS AGO....

So, is anyone still doing this method of saving? I figured I'd try it since we have a Easter trip planned to Universal and it was only 2 months of saving. I'm surprised to say that I now have $85 in fives. This isn't my only spending money so no worries there, but I found this to be kinda fun and really easy.

I think I'm going to keep it up and see what I have by next year's summer vacation.

 

[goofyredraider]

PLEASE NOTE THIS IS A BUMPED THREAD FROM 6 WKS AGO....

So, is anyone still doing this method of saving? I figured I'd try it since we have a Easter trip planned to Universal and it was only 2 months of saving. I'm surprised to say that I now have $85 in fives. This isn't my only spending money so no worries there, but I found this to be kinda fun and really easy.

I think I'm going to keep it up and see what I have by next year's summer vacation.

Yes, I'm still doing my $1 method (and change). Just my $1 added up to 2 deposits of $200 each! (400!!!!) since I started doing this again. My change jar is still accumulating....I won't cash it in until a few days before our trip.

 

[Mickeyflower]

I do $2 a day, if I can. Im unemployed so if I have $2 at the end of the day, it does go into my future Disney trip lock box. I also do not spend loose change, it goes into my car ash tray, and when that gets full, it gets rolled and into the lock box. When the lock box looks full, it goes into my savings acct. It's a slow, but steady way for me to save for a trip that is at least 3 years, maybe more, away. No, it's not the ideal way to save, but when you are literally, digging for pennies to get gas, it works.

 

[kadesha]

PLEASE NOTE THIS IS A BUMPED THREAD FROM 6 WKS AGO....

So, is anyone still doing this method of saving? I figured I'd try it since we have a Easter trip planned to Universal and it was only 2 months of saving. I'm surprised to say that I now have $85 in fives. This isn't my only spending money so no worries there, but I found this to be kinda fun and really easy.

I think I'm going to keep it up and see what I have by next year's summer vacation.

OP here! When I saw this thread bumped up I counted my box and have $205!!!! (I also threw a couple of 10's in there when I had some extra money) I can't believe it! The only spending habit I changed to go with this plan was eating breakfast. I used to stop and pick up a biscuit before work, but now I eat at home. I cannot believe I have saved that much, and I still have 65 more days of saving before my trip!

(I have to admit, sometimes I cringe when someone hands me a $5 bill. lol! But then I remember how much I'll appreciate it while I'm at WDW!)

 

[nuke]

I've been doing this for a couple of years. Last year I had enough spending money for two vacations. I started over after Christmas and I have $300 saved. I still do automatic deposit into a savings account and save for retirement. This is just fun money and money I don't miss once it's in the envelope.

 

[jessp1021]

I already have a change jar started but I am going to do $1's and maybe even $5's..although we have the dining plan I would like to do a night at California Grill as a surprise for my hubby! (We went there on our honeymoon so this would be soo cool to do!) and my goal is to save enough for dinner for the 4 of us there tip included and maybe even a little extra spending money for a new outfit for everyone before the trip!