Saving every $5 bill you come across for a full year might sound like a small challenge. But it can lead to surprisingly big results. This simple, cash-based savings trick has gained popularity because it’s easy to stick to and the results are tangible. Just by being disciplined about saving, you can significantly improve your financial health. Here’s what happens when you save every $5 bill for a year.
1. You Could Save Money Without Feeling It
Most people who commit to this challenge report saving anywhere from $500 to over $3,000 in a year, depending on how much they use cash. Because the amounts are small and the habit is consistent, you barely feel the loss, yet you steadily build a savings stash. While this number may seem small, over time, you’ll learn how easily saving can fit into your monthly routine. Plus, you’ll see this saved money grow over time, adding to your wealth.
2. It Turns Spending Into a Game
Every time you break a $10, $20, or $50 bill, you’re now on the lookout for a $5 to stash away. It creates a fun, reward-based mindset around spending and saving. Even non-savers find themselves sticking to it because it feels like a personal challenge. Getting your partner involved can also add a fun element to this challenge. See who can save more every month and maybe even build in a prize!
3. You Start Using Cash More Intentionally
Sometimes, present bias and instant gratification make us spend more than we should and forget about saving. This method makes you more mindful of your spending, since you’re relying on physical currency rather than swiping cards. Many people report cutting back on impulse buys because they’re focused on keeping their $5 bill streak going. If you have a habit of overspending, this challenge can help you be more intentional with your money. In the long run, changing your money habits is worth more than saving those $5 bills.
4. It Becomes a No-Stress Fund
By the end of the year, you’ll have a pile of cash you didn’t plan on. It can serve as an emergency fund, a holiday shopping budget, or a guilt-free splurge fund. It’s savings without sacrifice. You may be surprised at how nice it feels to have a small cushion to fall back on or enjoy.
5. You Build Discipline Without Trying
Because it’s such a low-effort habit, you build financial discipline without strict budgets or spreadsheets. It’s perfect for DINKs that don’t love financial planning. The key is consistency and not dipping into your stash early. The more you practice healthier habits, the more you’ll grow personally and financially.
Learning to Save One $5 Bill at a Time
Saving every $5 bill for a year might seem simple, but the payoff is real. It’s a great way to trick yourself into saving money without even noticing. In no time, you’ll be able to increase the amount that you save and work savings goals into your budget.
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Teri Monroe
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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