I have been thinking recently about some challenges to set myself for 2020. I like a challenge! Last year, I was contemplating a No Spend Year. I keep pondering whether to do this, but it seems a bit too much at the moment, especially with two young children. However, I needed to have something to focus on, alongside our long term goals.
Then, I was reading in a Facebook group I was in and a lady shared a photo of something. She has been doing this £5 savings challenge all year and shared a picture of the stack of £5 note she has saved during the year. I was sold! It was seriously a great amount.
So, I was wondering if I could do my own £5 savings challenge for 2020. I use the cash envelope method for our variable expenses – see this video for more information on that – and so have cash regularly. In fact, I use all cash for anything we spend that isn’t a fixed expense. I keep meaning to do a blog post around this! But, essentially, adding the £5 savings challenge into the mix shouldn’t be too much of a stretch and I’m very excited about it.
Basically, the £5 savings challenge is very much what is says on the tin. When you spend cash, if you receive a £5 in your change, then you save it! Whether that be an existing jar that you already have, a tin you can put it is or, as I’m intending to do, a cash envelope that you have spare, just keep it somewhere. I already have some leftover cash envelopes that I got when setting up my system – they came in a pack of 12 and I don’t have that many variable expense categories – so I’m just going to use one of those 🙂
I suppose this is another challenge fairly similar to the £2 coin challenge. This slightly different as I try and save every £2 coin I get! The £5 savings challenge should add up more quickly though 🙂
And then, at the end of the year, you get to choose what you do with the money! You could invest it to get dividend income, spend it on Christmas without worrying about managing, book a holiday or something else. There are so many options! The choice is yours; I suppose it might depend on how much is there at the end.
Are you going to join me? Let me know in the comments!
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I am really interested in giving this a go, the hard bit comes when you are tempted to dip in. I did your £1000 pound emergency fund challenge, using your free printable and have just achieved this (proud), now doing the every day, check the bank account, round it down to the nearest £5 though, currently at £56.18, “big trees, from little acorns grow”. Thanks for the tips and hints, this year we enter Christmas, on plan, not overdrawn, bills all paid, such a nice feeling. THANK YOU, for showing us all things can be turned around, with a little bit of effort
Hi
I’ve recently joined and having a good look through your website and facebook group. I’m a keen saver as our financial circumstances changed in April when I gave up my business to spend more time with my youngest child before he starts nursery in April 2020, I also have a 5 yr old. I have done the £2 coin challenge and used a huge whiskey bottle, £1400 we saved and it paid for our caravan storage fees and a november holiday for the family. We are buying a house in early 2020, I’m only working part time from home but my debt has mounted up and I need to clear half of it as soon as possible. The more I change and put in to place the better. I will continue the £2 challenge and look at all your other advice and see what I can put into place. Every step will make a difference. I cant wait to get started on this xxx
Did the £5 challenge as much as possible during this difficukt year. Was very surprised when I counted it, I had accumulated £135. So will definately do again in 2021
That’s amazing – well done you! 🙂