About this time two years ago I would have been hesitant to even mention this in public. That was before I decided to start a separate savings account to store the horded cash in, so don't don't get any ideas. There's no money kept here any more
The five dollar method dictates that you never spend anything less than a $5.00 bill. If you want a pack of chewing gum that costs 79 cents or a Coke that's a buck and a quarter, you pay for it with any bill that's a five spot or larger. Any change you get back can be spent on something else, as long as the change is a five spot or larger. Anything smaller than a $5.00 bill goes into your bank jar when you get home.
Now the merits of this are both obvious and hidden at first glance. The obvious is that you have created a great way to save money over time. The hidden is that over time you really start to think if that pack of gum or that Coke is really worth five dollars, and you tend to adjust your spending habits accordingly.
Like I said, a couple of years ago, I wouldn't have dreamed of mentioning this on an open forum on the internet. After 8 years of doing this I had accumulated over $17,000 in cash money that I was hording in my house, and the last thing I'd want is for everybody in the world to know I had that kind of money sitting around here, so a couple of years ago I opened a savings account at one of my banks. Nowdays, the extra money that I save by using the five dollar method gets deposited in that special savings account every time I go to the bank. I'm up over the $20,000 mark now, so I thought I'd share this idea with my fellow treasure hunters. Treasure is found in all sorts of places.
I initially started this idea as slush money to fund my vacations, but since I haven't had much of a vacation in almost as long as I've been saving the money, it's starting to look like it's going to be a retirement fund.
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« Last Edit: June 20, 2010, 02:18:46 am by bigwater »
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Anybody who says "it can't be done" will usually be interrupted by somebody who is already doing it.
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