Saving money is one of the hardest tasks to accomplish nowadays. Between yearly trips, hanging out with friends and other leisurely activities, it’s actually the last thing on anyone’s mind. However, social media influencer Malika Owusu-Antwi came up with an easy and fun solution to saving: The $5 Challenge.
Owusu-Antwi doesn’t proclaim to be a money expert, but the $5 challenge has helped her save money before. The challenge’s premise is simple: save every $5 bill you encounter. This challenge has captured the attention of many eager to bolster their savings.
She initially started the challenge to save for a birthday trip in 2013 and needed a way to save up for it. After she evaluated her spending habits and noticed where she needed to make the changes, she decided to pay her bills and take out cash for everything else. Then, she started to save every five-dollar bill that she came in contact with.
The Importance of Building Your Savings
Saving money is not merely a matter of accumulating wealth. It is essential for financial stability. Establishing an emergency fund is paramount, as it acts as a safety net during unforeseen circumstances. Whether it’s a sudden medical expense, car repair, or unexpected job loss, having funds set aside can alleviate the stress of financial turmoil.Â
Saving also enables individuals to pursue long-term goals, such as homeownership, higher education or retirement without resorting to burdensome debt. By cultivating a habit of saving, individuals empower themselves and seize various opportunities for growth and advancement.
Other Money Challenges That Can Help You Save
The $5 Challenge isn’t the only savings challenge you can try. The challenges may be different, but they all have the same goal: encourage disciplined saving and provide a tangible visual representation of progress. They motivate participants to stay on track toward their financial goals.
100 Envelope Savings Challenge
The 100 Envelope Savings Challenge utilizes a planner with envelopes labeled with dollar values ranging from 1 to 100. Participants contribute the corresponding amount to the designated envelope each week or month, gradually building up their savings. After completing the challenge, diligent savers can accumulate a substantial sum of $5,050.
$10K in 100 Days Challenge
Similarly, the $10K in 100 Days Challenge provides a structured framework for saving a significant sum within a relatively short timeframe. Each day, participants commit to setting aside a predetermined amount, indicated by stickers or markers. By consistently adhering to this routine, individuals can accumulate $10,000 in savings within 100 days.