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Post by justkat on Apr 21, 2016 16:49:39 GMT
So I had lunch with a friend yesterday. She mentioned that she has saved almost $3K that she wants to use to go on a girls' weekend. I think it's a great idea. However I was surprised she had saved so much as I know her yearly income. She laughed and said it's due to a new savings plan she found online. She explained that for a year she set aside every $5 bill she came across. Then at the end of the year she added them all up and it's just under $3K!!
So if you do the math: $3K divided by $5= 600. In a year's time she's come across 600 $5 bills. I came to this country in the mid 90s. If I saved every $5 bill from the seconde I stepped off the boat until this very moment I'd have roughly $40. I just don't use cash. When in public I don't see many people using cash.
So my question is, do you use cash? Would you be able to save a lot of money if you used this $5 plan? It would never work for me. At the end of a year I might be able to afford a trip to McDonald's.
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SweetieBsMom
Pearl Clutcher
Posts: 4,740
Jun 25, 2014 19:55:12 GMT
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Post by SweetieBsMom on Apr 21, 2016 16:56:06 GMT
I do this. I call it the $5.00 jar. I've been doing it for a couple of years now and it really adds up, especially if you use cash, which I try to do. DS and DH laugh when they have $5.00 bills: "Oh, don't let mama see that!".
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valleyview
Pearl Clutcher
Posts: 2,816
Jun 27, 2014 18:41:26 GMT
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Post by valleyview on Apr 21, 2016 16:57:28 GMT
I don't use much cash either, but these days, those fives don't show up often. It seems like I usually have twenties and ones.
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brandy327
Drama Llama
Posts: 6,353
Jun 26, 2014 16:09:34 GMT
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Post by brandy327 on Apr 21, 2016 17:00:32 GMT
Up until a couple of months ago, if I had done that I'd have like $20 at the end of the year because I NEVER used cash...always my debit card. I'm starting to switch over to more cash, except for bill paying, just to be more accountable and have the money stretch farther.
It's an interesting concept and I may have to try it out.
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Anita
Drama Llama
Posts: 5,702
Location: Kansas City -ish
Jun 27, 2014 2:38:58 GMT
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Post by Anita on Apr 21, 2016 17:00:32 GMT
Wow, that is kind of impressive. I so rarely have cash that if I saved all my fives all year, I'd probably have five bucks.
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grinningcat
Pearl Clutcher
Posts: 4,663
Jun 26, 2014 13:06:35 GMT
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Post by grinningcat on Apr 21, 2016 17:03:41 GMT
I use cash all the time, I could easily do this.
To be totally honest, I don't really understand the whole going cashless thing... it's so much easier to overspend when you don't have something tangible in your hand. First thing I do every payday is take out cash to use.
I may do this for our upcoming trip. See how much I/we can save between now and August.
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Post by justkat on Apr 21, 2016 17:08:17 GMT
I'm all for saving money. I say whatever works for you do it! lol I was seriously shocked though that she'd have that many 5s in a year. I don't use cash and I rarely see others using cash. I use nothing but debit/credit cards. I can tell you within 10 cents my balance of every account. Cash? Nope, I'm weird. Either I'll be afraid of spending it all and hold on to it forever or I will spend it all. I have a $10 bill in my wallet that was change from some money I won in Vegas. My last trip to Vegas was almost 3 years ago. lol I realize most people work the opposite way, are better able to track cash but not me. shrug I'm curious now and think I'm going to try it. I told my husband and he laughed. I'll probably have about $20 at the end of the year but what the heck. ETA: grininngcat, I can't speak for anyone but myself. I don't use cash and it works for me. I know it wouldn't work for most people. Not long after I came to this country I was mugged. My debit and credit cards were canceled and reissued. I was assured that any funds would be replaced and that I wouldn't be responsible for any charges made. That was all true thankfully. However the $300 in cash I had on me was not replaced, returned, refunded etc. I work too damn hard to simply loose $300. From that moment on I no longer used cash unless there was no other option. I personally find it much easier to keep track of my money using debit/credit. I could tell you the balance in each of my accounts within pennies. I can't do that with cash. I don't know why, it's silly as it really isn't much different but maybe my brain just isn't wired that way. So I say everyone should do what works for them. I'm still a bit stunned someone could save that much money just by hoarding 5s. lol
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Post by padresfan619 on Apr 21, 2016 17:09:18 GMT
I do this and saved enough to put a decent chunk towards buying a car. I take out cash to use for lunches, meals out with friends, and other small purchases. At the end of the day I would empty any $5 bills into an envelope and wouldn't touch it. I still like to use cash when I'm splitting a bill or buying small stuff because I don't like dealing with multiple credit cards on a bill or having a bunch of small purchases clog up my online banking statements.
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Deleted
Posts: 0
Sept 29, 2024 22:29:45 GMT
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Post by Deleted on Apr 21, 2016 17:15:55 GMT
We don't do $5.00 bills (although a great idea).....we do put our change at the end of the day and have saved hundreds toward a vacation
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Post by myshelly on Apr 21, 2016 17:32:37 GMT
I never have cash.
It's just inconvenient.
I have to physically go somewhere and physically do something to get cash.
Whereas our paycheck are just automatically deposited to our bank account and I can get anything I need anywhere with my bank card with no effort on my part.
I spend cash without thinking much about it. Because, to me, cash is just extra. It's something outside our budget/outside our paycheck.
If I use my bank card I am religious about remembering the amount and deducting it from our balance I keep running in my head. Whereas if I spend cash it's outside that balance I have to keep track of, so the cash just comes and goes without much thought.
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Post by katlady on Apr 21, 2016 17:34:06 GMT
I still use cash for smaller purchases (under $20). I feel funny charging small dollar amounts and I don't use a debit card. For myself, I am not comfortable without some "emergency" cash on me.
One day a group of us went out to lunch. We ended up at a place that was cash only. One gal did not have cash, but luckily there was an ATM machine in the place. And it was not an expensive place, less than $10. So, yes, I still carry cash. I should try this and see how much I have by the end of the year.
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Post by Linda on Apr 21, 2016 17:36:59 GMT
The only time I EVER have cash is when someone gives it to me (either as a gift or to reimburse me if I covered an expense). Otherwise I never use cash.
That said - I'm a homemaker with no income of my own so the $200/wk that DH deposits as grocery money is all the money I handle on a regular basis. To me, it doesn't make sense to make a separate trip to the bank to get cash only to give the majority of it right over to the grocery store (he deposits electronically)
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Deleted
Posts: 0
Sept 29, 2024 22:29:45 GMT
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Post by Deleted on Apr 21, 2016 17:42:55 GMT
We rarely use cash and have zero debt. We put absolutely everything we can on a rewards credit card, keep the balance paid off, and get free stuff because of it. IMO if people aren't good with money, it really doesn't matter what form that money is in.
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used2scrap
Drama Llama
Posts: 6,080
Jan 29, 2016 3:02:55 GMT
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Post by used2scrap on Apr 21, 2016 17:50:14 GMT
We don't use much cash...but everytime I stick any in the jar, within a day or two the kids need $5 or $10 for a school thing or field trip or something, so it never gets the chance to add up!
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Post by Bitchy Rich on Apr 21, 2016 17:52:54 GMT
So my question is, do you use cash? Would you be able to save a lot of money if you used this $5 plan? It would never work for me. At the end of a year I might be able to afford a trip to McDonald's. I always keep cash on me for Aldi and garage sales. I happened to be in Kroger when they lost power briefly. Registers could only accept cash and people were just wandering around looking clueless. One guy tried to write a check. That makes me think very few people carry cash.
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Post by cmpeter on Apr 21, 2016 17:56:29 GMT
That's 11 $5 bills a week. Even when I have cash (a cash only friend reimburses me in cash for trips, tickets, dining out, etc). She gives me $100's or $20's, I hardly ever have $5's even after breaking her larger bills.
I put everything on my points credit card. We redeem those points for air miles. Helped cover two trips to Europe last year.
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Post by papercrafteradvocate on Apr 21, 2016 18:00:44 GMT
Yes. It's doable and saving (cash) is very contagious !!
I can usually save up several hundred a month, by removing change (paper and coin) from my wallet and dumping in a drawer, rounding out my grocery to an even $ and saving the difference, saving $$$ from odd jobs I take on or even selling off unwanted household goods! I may make a wreath or piece of art that boosts my savings. I paid cash (several thousand $) for an entire new set of living room furniture within 6 months of us moving into our new home.
It's vey doable, it just takes focus on you goal .
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Post by papersilly on Apr 21, 2016 18:02:35 GMT
I use cash all the time, I could easily do this. To be totally honest, I don't really understand the whole going cashless thing... it's so much easier to overspend when you don't have something tangible in your hand. you are so right. i remember when i use to sell at craft boutiques. another seller told me that people spend more/buy more when they use a CC instead of cash. to test the theory, i started accepting CC and my sales doubled. on the flip side, this made me more mindful of how i use my CCs.
i usually use cash on my incidentals. i just don't like dragging out the card for anything less than $10. I NEVER use my debit card. it's either cash or a CC that I pay off each month (but only use for the rewards).
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amom23
Drama Llama
Posts: 5,403
Jun 27, 2014 12:39:18 GMT
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Post by amom23 on Apr 21, 2016 18:09:29 GMT
I always have cash on hand. For one thing my kids play sports and you can't use a credit card to pay for admissions at the door or at the concession stand.
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kelly8875
Pearl Clutcher
Posts: 4,407
Location: Lost in my supplies...
Oct 26, 2014 17:02:56 GMT
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Post by kelly8875 on Apr 21, 2016 18:11:06 GMT
I'm pretty much cashless. I used my credit card for everything and pay it off each month. Those airline miles really stack up that way!
When I do have cash, if I have it for a week and don't use it, I put it in a jar and pretend it doesn't exist. Or if someone pays me back for something, that cash goes in the jar too.
Cash to me is 'extra' and I don't think of it as money anymore. If I use my credit card I can track it easy, see all my purchases up front and know when to back off. It just works best for me.
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Post by kath323 on Apr 21, 2016 18:17:02 GMT
I'm a mix, but I find it's definitely easier to use a card than cash. The tangible thing makes me want to hold on to it!
I did the $5 savings for three months last year and had 60 bucks. It was kind of cool and I should have stuck with it! This year I did the 52 week savings plan in reverse (saved $52 first week of Jan, $51 second week until the last week in December you save $1) through March and had enough to buy a new spring wardrobe in cash. Felt really good!
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christinec68
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Jun 26, 2014 18:02:19 GMT
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Post by christinec68 on Apr 21, 2016 18:19:15 GMT
I am about 50/50 for using cash or a credit card. I use cash for my day to day spending but will use a credit card for groceries, eating out, etc. I don't think I could save $600 in five dollar bills over the course of the year although I was kind of surprised I had 3 $5 bills in my wallet on Monday. But if I put them in a jar, I would have had about $6 left and would have to get more cash so that seems counter productive to me. We do save most of our change which really adds up. One year it was over $600!
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Post by disneypal on Apr 21, 2016 18:23:41 GMT
I hardly use paper cash anymore - mostly my debit card.
The only time I get actual paper money is when I am going to be going on a trip - I will take $40 with me (just in case)
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The Birdhouse Lady
Drama Llama
Moose. It's what's for dinner.
Posts: 7,340
Location: Alaska -The Last Frontier
Jun 30, 2014 17:15:19 GMT
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Post by The Birdhouse Lady on Apr 21, 2016 18:25:37 GMT
I have saved over 3 grand but it has taken over 2 years!
I do the 52 weeks of savings.
There are 52 weeks in a year.
Week 1 you put $1.00 in an envelope.
Week 12 you put $12.00 in an envelope.
so on and so forth.
At the end of the year you have $1,378.00.
I am on my third year of doing it. I am planning to use the money to take my daughter to New York when she is a Senior.
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Post by lucyg on Apr 21, 2016 18:29:27 GMT
I always have cash. I don't like to use a credit card for small purchases, especially at small businesses (no matter how convenient it may be for you, general you, those small businesses are not making a profit on your purchase), and I don't carry checks anymore. Also, since my debit card got hacked a few years ago, I don't like to use it for shopping. So, no problem finding $5 bills here. But that's a lot of $5 bills in one year. She must have been asking for them everywhere she went. I can see it becoming a personal challenge and managing to save quite a few. It's almost like a hobby, saving $5 bills.
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Post by JustCallMeMommy on Apr 21, 2016 18:44:16 GMT
My $5 bills would get "borrowed" - the yardman's fee ends in $5, and I'm always having to go get change to pay him. He is the only entity I consistently pay in cash though - I rarely carry cash at all.
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luckyexwife
Pearl Clutcher
Posts: 3,069
Jun 25, 2014 21:21:08 GMT
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Post by luckyexwife on Apr 21, 2016 18:52:32 GMT
I use cash all the time, I could easily do this. To be totally honest, I don't really understand the whole going cashless thing... it's so much easier to overspend when you don't have something tangible in your hand. First thing I do every payday is take out cash to use. I may do this for our upcoming trip. See how much I/we can save between now and August. I usually have a very small amount of cash for emergencies, but for me I spend much more if I use cash. I don't like to make CC charges under $10 or $15, so if I don't have cash (or only very little ), I won't stop at the coffee place, or dash into the gas station. If I have cash, I tend to eat out more and it's harder for me to track purchases. It's much easier for me to use a CC, get the rewards, and pay the bill off completely each month. That's my system, but I know it would not work at all for others, just like using mostly cash doesn't work for me. I do loosely keep track of the CC though, as I always pay it off every month, and I don't want to spend too much. If I had spending issues, I'd probably use a different method.
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milocat
Drama Llama
Posts: 5,569
Location: 55 degrees north in Alberta, Canada
Mar 18, 2015 4:10:31 GMT
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Post by milocat on Apr 21, 2016 18:56:56 GMT
I usually have $100 cash on me. But could have that same $100 for months. I used to use my debit card exclusively when I was younger. Now I use my credit card 99% of the time. I pay all my bills with my credit card even. Gotta get my airline dollars. Flying from and within Canada and starting in our small connection city is so expensive I need all the free airline dollars I can get.
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Deleted
Posts: 0
Sept 29, 2024 22:29:45 GMT
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Post by Deleted on Apr 21, 2016 18:59:56 GMT
I only use cash to pay the cleaners -- I take that much out every two weeks. Everything else goes on a points charge card. I don't like to carry around cash because I'm afraid I'll lose it (like I lose everything else.)
I'm very good at keeping track of my money and budgeting. I love being able to access my banking and credit card accounts online. I forget what I've spent as cash, but I have a good record it from my credit card.
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Post by crimsoncat05 on Apr 21, 2016 18:59:56 GMT
nope, wouldn't work for me, at all. I got $20 cash yesterday and it's the first cash I've carried in probably over 3 weeks.
If I have cash it gets spent. And I'm never exactly sure what I spend it on, to tell you the truth. I am much more accountable by using credit cards or the bank card.
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