How to Save $5000 in Cash
Imagine having $5000 in cash by the end of the year. The things you would do with that money. The presents you’d gift, the trips you’d take, or the debt you’d pay off. Wait…don’t just imagine it. Start saving now! It is extremely easy to start.
One of my good friends showed me this trick a few years back. The cash helped my friend and her then-boyfriend be able to save up and move out to their own place. They’re now happily married and still continue to use the envelope method to save thousands of dollars every year. The envelope method really works without making a dent in one’s budget.
What you’ll need:
1 Pen or Pencil
Storage Box or container (i.e. shoe box)
How to use the Envelope Method to save over $5000 a year:
- Label each envelope from $1 to $100
- Shuffle and mix up the order.
- Place your labeled envelopes in a box.
- Pull out 2 envelopes each week.
- Fill up the envelope with the exact amount on the outside and seal it back up. If you randomly pull $2 and $30, put $2 in the $2 envelope and $30 in the $30 envelope.
- You can either place the sealed envelope in a new box or start stacking the ones you’ve already saved
- After 1 year or 12 months, you’ll save $5050
- Bonus Challenge: Add more cash to the envelope(s) when you have extra to spare. This method can help you save up to $10000 a year.
This challenge allows you to easily save money without the hassle of using a savings account. Another reason why this method works is because the cash will be stored away in a safe space. Without it on your card or in your wallet, you’ll be less likely to splurge on your next shopping trip.
What you could do with $5050:
Get rid of some serious debt
Go on Vacation
Make a downpayment