I want everyone to pull up a chair and get comfortable because I’m about to tell you a story that may seem hard to believe — but it is the absolute truth. Awhile back, I made a decision that forever changed my relationship to money: instead of spending every $5 bill that passed through my hands, I started saving them.
At the time, I had two daughters in private colleges and, to put it mildly, my husband and I were financially stressed. But I found that socking away each and every $5 bill I received as change in a cash transaction was one way I could stay in control of what little extra money I had at the time — and the strategy has paid off. The girls are out of college and both are married now. And I’ve saved almost $36,000, all in $5 bills. Wowza!
The best part about my plan is that you can do it too. All it takes to get started is a commitment to save and one $5 bill.
The number one reason most people don’t save is that they don’t have a savings plan. Not me. From the moment I wake in the morning, I’m thinking of ways to get back a $5 bill. That’s one reason I do most of my day to day living by spending cash, because let’s be honest, you can’t get a $5 back if you pay with a debit or credit card.
And once you commit to saving your fives, you’ll never look at a $5 bill the same way again. Once you see them accumulate, you won’t be tempted to spend them. It becomes an addictive habit, a fun game to see how fast you can grow your stash.
One of Warren Buffett’s ideas about investing that I really like is that we should invest in ourselves before anything else. What better way to invest in ourselves than committing to a personal savings plan?
The way I see it, people everywhere are yearning for a simple way to put aside some extra money, to pay for a wedding or a vacation, a new car or a house; to pay off school loans or help put a child through school; or maybe the ultimate savings goal — retirement. Some people throw loose change in a jar, while others are way more ambitious and disciplined, setting aside 10% of their monthly income as savings before paying their bills.
But loose change never amounts to any significant money and most people can’t save at all, much less 10% of their salary. So I started a blog called “Save Money Fast with Fives” to help people get started on the idea, and hope you will become a faithful reader and a follower.
Marie C. Franklin is a former member of the Boston Globe staff and today a journalism professor at Lasell College in Auburndale, MA. She publishes a personal finance blog at Save Money Fast with Fives.
Photo Credit: The.Comedian
Anyone at any age can accumulate money by saving fives. It’s the perfect denomination to sock away from a cash only budget. Kids also love the tangible nature of saving fives so it’s a great way to get them excited about saving money too!
I agree, Julie. I thought Marie’s idea was not only clever, but simple and, as she has demonstrated, quite effective — which is why I asked her to write this guest post for my readers.
It was my pleasure to guest blog here, Len, so thanks! Julie, you’re so right about kids embracing the idea. just like kids like to count by fives (remember practicing, 5, 10, 15, 20, 25, 30 and so forth), there’s something easy, fun, and simple about the 5 concept. Thanks for your comment.
Marie
Thank you again, Marie, for sharing your story.
On a much smaller scale, I did this with dimes when I was waitressing (back in the 80s and 90s.) I never counted, I just filled tin after tin after tin with dimes and put them under my bed. When I moved, I had to count them and cash them in ………. $5,750.00.
I just started it on a whim because my father saved dimes when I was growing up. They sure did add up. $5.00 bills are a great idea!
Wow, Shirley! Fantastic!! Isn’t amazing how easy it is to save significant cash by simply taking seemingly insignificant actions? The key is in staying the course.
Shirley, Wow! I think $5,700 saved is BIG scale. Congrats! Your story proves the point…a little saved every day adds up to a large amount in the end. When I first started saving my $5s, I was putting away maybe two or three ($10-$15) each week. Once I retired my debit cards, and later started using only cash for every day purchases, they added up fast and I save 2-3 $5s every day. Now that 12 years of this practice have passed and I see I’ve put away almost $36,000, all in $5s, I’m a true believer in the value of making a small investment over time. Good luck with your savings, and maybe you want to start saving $5s?
Hello! I call my $5 savings account my save an Abe account. Every month I take what $5 bills Ive saved and deposit in the bank. Ive been doing this for about 15 months. So far Ive saved over $1,600. Its easy and not much stress! I dont think twice about putting my $5 bills aside for saving!
I’ve been following Marie’s blog for about 6 weeks now and it’s one of the easiest things I’ve done. No one gets a five from me! And, I’m amused at how many cashiers will give three 5’s back as change instead of a ten and a five. That seems to happen a great deal for me. I simply smile and stash them away! I’m at about $350 saved in this short period of time. Good luck to anyone else who tries this easy way of saving.
That’s a fantastic idea. Another way I’ve found to save painlessly is to accumulate all the change I get, then take it to my bank to be counted. There is a coin machine which is free to customers. You get a printed receipt which you’re then supposed to take to the teller to exchange for paper money. I always give the teller the receipt, and have it deposited in my savings account. It’s not a huge amount, a few hundred dollars a year, but it’s something.
I’ll be trying the $5 savings plan. Thanks for the great idea!
I’ve been doing the “5 dollar challenge” for almost 2 years. It does add up fast. But I don’t just let the fives sit there. After I get about $300, I’ll deposit them and then make a deposit into a savings account or mutual fund.
Hi Paula, Glad you’re having success with the plan. You bring up a good point—-what to do with the money saved. I make a deposit in a savings account every time I accumulate $100. When I hit $1000 (saved in $5s) in the savings account, I transfer the money to a money market fund. Yes, both pay small interest, but I feel like my $5s ‘magnet’ is safe that way. I also own many other paper investments, stocks, bonds, mutual funds, 401K funds and the like.
I save quaters.Been saving about a year and a half. I have three hundred and fifty four dollars. It works.
In the past we stared stashing 10% of all our cash income(s). Inevitably over time we would need the money to pay for groceries, gas or a bill. How do you keep from tapping onto the money you’re trying to stash away?
Len: My wife and I absolutely love your blog and find many of your posts to be just what we’re looking for.
Again, awesome blog!
Thanks, Miles!
I use Digit to siphon off money from my checking account that I’ll never miss. When it grows to $1,000, I withdraw it and invest it automatically using Acorns. In 2 1/2yrs, I’ve amassed $48,000 using this technique.