I know, “challenges” are a frustrating cultural phenomenon. But hear me out. Take these as personal tests – something to keep quiet about and brag about to yourself. Think of this as a financial exercise.
Again, nothing revolutionary here – but if you're struggling to save money, find yourself lacking discipline, or just need a goal for the next year, then try these two challenges.
$5 Challenge
Even though we're becoming an increasingly cashless society, we wind up with change jars and dollar bills floating around our sock drawers. This challenge is simple:
**Every time you get a $5 bill – put it in an envelope. Don't touch it.**
So what makes this challenging?
- You have real, urgent financial needs that require every penny
- You don't use cash
- You don't have a safe place to stash away all the Lincolns
- You work in an industry where $5 flow freely (tips-based economies)
- In this case, try socking away one $5 per shift/day
**Double down**
For every $5 bill you save, put $10 into your investment account.
**Make it digital**
If you never receive cash, or want to tie your savings goal to a specific activity (like spending money at Starbucks), sign up for a free Qapital account and set rules for when money should be added to the account.
Zero Days
If you find yourself spending money too frequently or needlessly, then schedule $0 days. This means you do not spend any money at all. Not on your morning coffee, not on your lunch, not on the late-night Amazon book binge that you're sure is necessary.
So what makes this challenging?
- You are a daily social spender
- You use Uber or public transport (unplanned or budgeted)
- You can't bear to leave your credit rewards un-tapped
Like a budget, scheduling zero days helps you to take inventory of typical patterns. This isn't a challenge to send you into a defensive financial mindset, but it's a good challenge for any of you who need a bit of extra financial discipline (and who doesn't need that, right?)
I read about the $1 challenge about 10 years ago in a book and how a guy saved for a ski trip by saving his $1 bills because he had more of those than $5 bills.
I tried it and ended up accumulating about $100 to $200 in one year.
A $1 and $5 challenge would be interesting. When I pay with cash, those are most likely the two bills I use first. If I know I don’t have them and I don’t want to break a $20 bill, I’ve saved money!