How many times a day do you think a $5 bill passes through your wallet? Once, twice, three times? Even more?
Five-dollar bills are incredibly prolific, which is the logic behind one of the oldest savings tricks in the book. It’s simple: Every time you receive a five, tuck it away in a different part of your wallet and when you get home, add it to a little stash. At the end of the month, take your pile of cash and deposit it directly into your savings account. You’d be surprised by how much you’ve saved.
Marie Franklin, an American journalism professor, swears by this hack and has been following it for 13 years. She estimates that she has boosted her bottom line by $50,289 (and counting) and she isn’t going to stop anytime soon.
“Was it a good way to save a bit of money?” she asked readers on her blog. “Only you can decide. My hunch is, if you give it a try, you might get hooked. Because who doesn’t like to stash away a little money for a rainy day.”
Jo Kelly, CMO of UBank, believes this is one of the easiest ways for women to add some serious dollars to their savings accounts.
“What makes it so achievable is the simplicity,” Kelly explains. “Anyone, anywhere can start building their savings using this trick. There’s no need to set up new accounts or develop complicated budgets — you can start with the money that is already in your wallet.”
What’s more, if you stick to it for a couple of months, your brain will start forming some nice savings habits. “Turning chores into habits is an easy way to save and research has shown that it takes the average person 66 days to turn a new behavior into a habit.”
“So, rather than jumping head-first into an extensive savings plan, start small and build up your savings by stashing your lower notes, but ensure it becomes an ongoing practice. If you keep this going for a few months, it will become a habit and your brain and your back pocket will thank you for it,” she adds.
Just don’t get ahead of yourself and start attempting to stash your fifties or even hundreds. You won’t see anywhere near the same amount of savings traction as you do with the fives, Kelly explains.
“Using $5 bills is the best place to start, as it’s easier to put away smaller amounts of money,” she says. “But there’s no reason you can’t really challenge yourself to save tens or twenties. Any higher is a bit tricky, as you’ll never have the chance to break your notes into smaller denominations.”