Are you taking the $5 challenge?

Social media is buzzing with the $5 challenge – a very simple trick that can save you hundreds, if not thousands, of dollars over the course of the year ahead. I love the idea so much, we’re adopting it in our house and I challenge you to do it with me!

By Julie Nipperess.

Australian 5 dollar banknote

Over the past few days, a great idea has been doing the rounds on social media. It’s really simple. Every $5 note you get you put away … in a jar or a box, and don’t touch until the end of the year.

According to people who’ve done it before, you can save thousands because the $5 notes just keep stacking up … and then you’ll be surprised at what you’ve amassed over a 12 month period. If you’re not a ‘cash’ person, and that’s fair enough (many shops and cafes and restaurants are still preferring electronic transactions while the coronavirus remains active), there is a digital version of the same idea.

In the digital version, you simply roundup your balance each day or week, and transfer the ‘uneven’ funds into a separate account. Say for example, your balance was $3,467.34, you’d put the $7.34 into a different account, so you had an even balance of $3,460.00

See how easy and uncomplicated that is? And it’s money you won’t even miss.

Start saving now

In the past twelve months I’ve talked A LOT about easy ways to save, as well as the the importance of ‘saving’ especially in times like the ones we’re currently facing.

Having an ‘emergency fund’ is something everyone should be striving for in their personal money management plans.

What I love about this idea is that the point is not necessarily to strive to create a rainy day fund, (unless of course, you don’t have one), but to simply embrace saving in a fun and effortless way. ….

At the end of the year, you might have saved enough for a weekend getaway, a fantastic holiday … enough money to do all your Christmas shopping, or to treat yourself to a nice new pair of shoes and a handbag too!

Of course, you could also use your money to pay off some debt, or start a small managed fund, or simply hang onto it, and keep increasing it over time.

You won’t regret having some spare cash

Most Australians don’t save enough, and in some cases, particularly right now while people are on reduced incomes or receiving government help, it is not always easy to find extra dollars in the weekly budget to put away, but this is an incredibly effortless way to stash some cash.

Children eating ice cream after swimming

And it doesn’t have to be $5 notes – it can simply be gold coins. One of my clients does this on auto-pilot. Every few days she empties her wallet and stashes gold coins into the ‘fun fund’ … this is money she uses for canteen lunches, family ‘pizza nights’ or extra treats and activities for the kids, that she doesn’t budget for. At the start of the December school holidays, there was enough stashed away to purchase both the children a brand new bicycle.

Give the $5 challenge a go – the results will surprise you. It doesn’t matter how you save, it’s just important that you do. So find a method you don’t have to be too disinclined about and watch the dollars add up.

This is general advice and should not be treated as personal advice. Julie Nipperess is an authorised representative of Step Up Financial Group Pty Ltd ASFL No: 512509.

Need more information? Get in touch with Step Up Financial

    • 107 Moulder Street,
      Orange, NSW 2800

      PO Box 2499
      Orange, NSW 2800

    • (02) 6362 5445