Monday, January 7, 2013

$5 Savings Plan

 Is one of your 2013 goals or resolutions to save more money for emergency funds or to make a vaca/play money fund? If so, here's a neat one to try out! I saved all of my $5 bills from the past four or five  months or so and put them into a mason jar. I'm planning on depositing it into my savings this week sometime.

I found this idea floating around Pinterest and thought I'd try my hand at it. Here's the original post I found about it, but the gist of it is that any time a $5 bill comes into your possession you put it aside and then once or twice a year you deposit the money into savings.

This would work great if I used all cash, but I use my credit card for everything. I know a lot of people suggest that you don't, but I use it to rack up points and I pay mine off each and every month. The points I save up I then redeem them in for gift cards that then get handed out as Christmas presents. I'm not suggesting you go the credit card route if you have issues with over-spending because obviously you have to have some self-control. Also, this method helps me to build up credit. I've been super lucky and have never had to pull out a loan so I really have no credit. Now, with my credit card spending and paying off monthly my credit score is within eighty points of a perfect credit score (850).

The system works good for me and the money I save with my $5 bills will also be used for Christmas presents. So, basically, in theory all of the Christmas presents will be paid for come Christmas time! It worked fairly well this past year so I'm hopeful that 2013 will work just as smooth. Oh, another way I spread out the Christmas spending budget is to slowly order gifts earlier in the year. You've got 12 months so if you order at least one gift per month you'll have 12 people that you've shopped for but the amount you budgeted for them will seem like a lost less come Christmas time!

Plus, if you watch for good deals you'll be surprised how much you can save. I've got a wrapping station in my craft room so when I buy their present I just wrap it right away and set it aside. Then I stick a sticky-note on the bottom of the wrapped present to remind me what the items are. (just don't forget to pull the sticky off come Christmas time!) I also have an excel spreadsheet that I use to keep track of who I've bought what for and how much I've spent on everyone.

So, how much did I save in that five months? Drum roll please..... I saved a total of almost $200! Yes, not much but to deposit it into a savings account feels kind of nice. My plan is to deposit this amount twice a year into my savings and pull out ONLY when I'm buying Christmas presents.


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16 comments:

  1. I seen this on Pinterest a while back, I want to do it but I never have any cash so I wouldn't be saving much at all. However, I do try to deposit money into savings weekly with each check. Sometimes I have extra that I can transfer and sometimes I have to dip into my savings, depending on the week and what bills are due.

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    1. I do the same thing! The same problem with me, I rarely have cash so this is why I didn't save a whole lot, but still worked good for a little savings! I also have automatic withdrawls set up for 4 times a month, each pulling out $25 for each account so monthly two of my savings accounts get $50 each. Works great and I never forget to pull money out.

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  2. Thanks for sharing my button. <3 Looking forward to browsing your blog later on.

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    1. Welcome! Can't wait to check you out too of course :)

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  3. Visiting via Money Saving Monday :)

    I really need to start this easy saving program for 2013! Thanks for sharing :)

    ~ Jill

    http://www.frugalplus.com/

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  4. Impressive! I do that too, buying the gifts all year long, I just wish I had more storage space to get more or bigger items. The spreadsheet is really smart.
    I may try this $5 thing. I don't use cash as much as credit or debit cards, but I do know I get quite a few $5s when I do.

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  5. I found you via Kelsey's blog hop (is everyone named Kelsey these days?! It's so confusing!) and I had to comment on this post.

    All my change (and my husband's) goes into my daughter's piggy bank and we routinely deposit it in her 529 savings acct. I'm always surprised at how quickly it adds up. It's usually only about $20/month, but that makes a huge difference when it sits in an acct that's accruing high interest. I might have to try doing this with all my $1 or $5 bills, too.

    Liv
    www.livwrites.com

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  6. Such a great idea! I love that it's used as a sort of Christmas savings plan! Thank you so much for sharing! I found you over at DianaRambles.com. Such a great blog! Look forward to seeing more! Does your blog link to Facebook? I saw the flag up top but it doesn't seem to link to anything. I'd love to follow you there too! Let me know! Thanks so much again!

    <3 Laurie aka Lulubell Elaine @ LulubellElaine.com

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  7. I agree with you. This sounds like a really great idea, but I mostly use my credit card as well, paying it off each month and using the points for gift cards. But I have a friend who can't seem to save a dime, and I think this could be fore her. I will send her your blog post to see if this could work for her.

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  8. Isn’t it amazing how much you can have when you start saving a little amount for a long time? What more if you were able to save a higher amount each time? That would be a great deal! Anyway, thanks for sharing your tips, Kelsey. This will be really helpful for those who find it difficult to start their savings.

    Antonia Pierce @ Cash Loans Today

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  9. That is a great idea! $5 bills can add up to quite a bit!

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  10. What credit card company do you use to get those gift cards?

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  11. Thank you for sharing such great information. Savings Plan and so on.

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  12. I have done the same thing with $1.00 bills for years. I save most of my $1.00 bills.(I do use a few a week if I am buying something small.) I have a lockbox that I keep my ones in. When I get about $100, I put them in the bank and start over again. I also have jars that I keep change in. That adds up, too!

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  13. Thank you for sharing such great information. It is informative, can you help me in finding out more detail on Tax Saving Investment, i am interested and would like to know more about this field and wanted to understand the basics of Best Tax Saving Plans

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  14. I never carry cash either, but when at a store that will let you get cash back, I always get $10.00back. Of course ask for two 5.00. Put one up and keep one, so you will have a bit of cash, better thsn using debit card. You know you only have $5.00 to spend.

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