I’m always looking for simple savings plans to avoid spending money I don’t have. I normally use jars to save up coins, but I like this one better.
This is a savings plan that has been circulating around many web blogs. It’s called the five-dollar savings plan and it’s a fantastic way to save money. It goes like this: Every time you find yourself with a five-dollar bill in your possession, you set it aside instead of spending it. At the end of the year, you use the money you’ve saved for either a big purchase or to do something you wouldn’t normally spend the money to do.
One way to make sure you aren’t tempted to spend the bills is to deposit the money you’ve saved in a savings account at the end of each month, and wait until the end of the year to withdraw from it. This savings plan is as simple as saving spare change. I’ve heard of people using this plan and ending up with over $500 at the end of the year.
We could all afford to treat ourselves to something nice every once in a while and this is an ideal way to get the money to do it. Five dollars isn’t much, but it adds up to more than you may think. So the next time you find yourself with a five dollar bill in your wallet, set it aside instead of spending it and you could find yourself with a lot of cash at the end of the year.