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HOW TO STOP SPENDING AND START SAVING $5000 WITH A 52-WEEK SAVING MONEY CHALLENGE
I never liked throwing money away, but I have to admit that saving is not an easy thing!
And if you find yourself wondering where all your money goes at the end of every month, you might realize that you are spending on many items that are not really necessary.
You are probably making so many purchases out of old habits, but everything adds up.
Have you ever thought about how much money you are spending?
Some of the items we buy seem to make our life more convenient, while some others are sold to us through a combination of expert marketing tricks and cultural habits.
There’s a handful of things we all spend too much on, but a few painless tweaks can add up to major savings!
By cutting out some non-essential items you can make sure to hit your financial goals.
Here is how you can save $5000 or more in a year! A saving money challenge!
It’s time to finally take control of your finances and start saving money this year!
You can save for your dream holiday, for a big purchase or to pay off your debt: there is nothing better than setting up a challenge and have a goal in mind!
Setting goals is really important otherwise you end up losing sight of what you are trying to achieve. Not having an end goal in mind will make you lose the motivation you need to save money very quickly.
I created a free printable to help you with saving: the 52-Week Saving Money Challenge.
This challenge is a great way to save around $5,000 in the next 52 weeks. You don’t have to start the first week of the year! You can start today and keep going for 52 weeks.
At the end of it, you will have an extra $5,000 in your savings account!
And to help you with your saving challenge, I put together a list of things you can cut off to save money. I know this list will help you to reach your goal!
Some of the average savings are based on a single person. If you are a couple, you are in for much bigger result!
We managed to save quite a lot of money in the last couple of year, by cutting down on this list.
You can too!
A great tip that’ll help you to keep your savings safe (from You!)
Some of you asked me where you should keep your savings!
If you want to make sure you are making the most of your cash, do not keep your savings in your everyday bank account.
Every week, move your savings balance to a savings account. For example, you can earn up to 10x the national average with CIT Bank Savings Builder and you will be less tempted to spend the money you set aside! And earning high interest on the money you set aside will help you to build up your savings even faster!
By doing this, I saved thousands of dollars last year!
Super-useful free apps that will help you in your 52-week money-saving challenge
Here is what you should do when you start this challenge, especially if you need all the help you can get to save money!
If you want to save $5000, you are going to have to be very smart about how you shop, and these 2 apps are life-saving!
Rakuten: earn up to 10% cash back on online purchases for things you are going to buy anyway. And it’s completely free! You just need to download the app, sign up, select the store you need to shop from, and earn money! You’ll get a free $10 bonus when you sign up and you’ll be able to see how much cash back you can make on each different store when you select it.
Ibotta: this app is a bit different! You need to take a picture of your grocery receipts with your phone and upload them to the app. You will then receive between $0.25 to a few dollars per receipt as cash back for buying certain products. It’s so easy I can’t believe they actually give you cash for that. You can check it out here and get another free $10 sing up bonus!
And now that you are all set, let’s dive into my methods to stop spending too much money!
Things to do to save over $5000 in a year
1. Quit DVDs, CDs, magazines and get books for free
AVERAGE SAVINGS PER YEAR: $100
I am a big book lover. I try to read one book a week because I believe educating yourself is one of the biggest things you can do in life. But this doesn’t mean I need to spend a fortune on it!
With apps, phones, computers, and online subscriptions, there is no need to spend much on CDs, DVDs, and magazines. Amazon Prime offers on-demand, ad-free music streaming and unlimited readings on selected books and magazines.
You can also just use your phone apps (both on iPhone and Android) for the free latest news, delivered by the best newspapers.
And if you love reading paper books, go to your local library and read for free! Or get your books from charity shops: you’ll help the charity, the environment, and your wallet!
2. Stop buying fancy coffees
AVERAGE SAVINGS PER YEAR: $1,000 (per person)
I know you’ve heard this before…Boring!
No one is going to get rich by not buying a latte. I think we can all agree on that. That’s not to say you shouldn’t be mindful of your spending and understand how much you are spending on your coffee!
If you are the girl or the guy that gets a fancy cup of coffee at Starbucks every morning, it can really get expensive. A $4-a-day coffee can quickly add up to over $1,000 (and this is if you only buy coffee over the week, leaving weekends out!)
Making your coffee at home in the morning can make you feel like a real barista in your own kitchen! And you will save a ton of money too. You can almost go on a great holiday every year just by cutting that once-a-day cup of coffee!
And if you still want to indulge in a Starbucks a few times a week, why don’t you get your coffee for free?
I get my free coffees by using an app called Swagbucks. With it, you earn free gift cards by simply taking quick surveys, surfing the internet, watching videos or by cashback on your online shopping! You can get Starbucks gift cards and quickly earn your FREE coffee.
Swagbucks: It’s free, totally legit and it gives you a free $5 bonus just for signing up here!
I was a bit skeptical about using this app, but I made over $200 this year alone since I signed up for free and I love it! It’s now one of my favorite apps!
3. Stop cable TV and subscriptions
AVERAGE SAVINGS PER YEAR: $400
If you think about it, you are probably paying for cable TV channels that you rarely watch. Cancel cable TV now! Why pay for something you don’t fully use?
Netflix, HBOGO, and Hulu have basically made cable TV a thing of the past. Switching to an online service could cut your monthly spending on cable by over $30!
If you don’t watch many movies and TV series, you can also think about using an on-demand service, or opt for Amazon Prime. Amazon Prime offers Prime Video, with a lot of popular movies and TV Shows, included in the subscription. If you have never signed up for it, you can try Amazon Prime for 30 days free.
And if you need any help to keep your subscriptions under control, there is a free app that can help you with that!
Trim can:
- Lower your bill by up to 30% for your subscriptions with ANY provider (internet, phone bill, cable etc.).
- Analyze your transactions so you can quickly and easily understand where your money goes.
- Recognize recurring charges to make sure you don’t have any forgotten or unwanted subscriptions.
Try Trim 100% today:
Trim is completely free and secure. Your free account gives you a personal finance dashboard, personalized spend alerts and reminders, detection and fighting of overdraft fees, finding and canceling old subscriptions, and more.
4. Prep healthy work lunches and delicious snacks
AVERAGE SAVINGS PER YEAR: $1,000 (per person)
A delicious Chickpea Curry you can prep at home in 10 minutes!
We all start the year with good intentions, going out with co-workers only on Fridays. But before we know it, we end up going out every day! With an average work lunch costing up to $10-a-day in a big city, you can end up spending over $2,500 a year on work lunches alone!
I am not asking you to pack your lunch every day, but by bringing your lunch from home 3-4 times a week, you can easily save more than $1,000 a year!
And it’s much healthier too! If you are cooking your lunch, you will be able to control what you are eating. By packing your food at home, you can make healthy choices, add more veggies and control your portions too.
If you are not great in the kitchen, you can start by trying my delicious no-bake peanut butter balls. They are ready in 10 minutes and are my go-to snack during the week!
5. Stop thinking you’ll win the lottery!
AVERAGE SAVINGS PER YEAR: $100
I know winning the lottery sounds amazing! But no matter how much you play, the odds are stacked against you: you will end up losing money by playing the lottery. You can save over $100/year if you are buying a cheap $2 lottery ticket every week.
And I am talking because I used to do it! I played for 5 years, spent over $500 and won around $42. Would you call it a great return on investment? I learned my lesson, now it’s your turn!
READ: PERSONAL FINANCE HACK HACKS THAT WILL MAKE YOU RICH
6. Stop buying water bottles
AVERAGE SAVINGS PER YEAR: $180 (per person)
Plastic water bottles are not only bad for your wallet but for the environment too: bottled water is about 2,000 more expensive than tap. It also takes three times as much water than that contained in the bottle to manufacture it, and less than 30% of plastic bottles are recycled every year.
Carry around a reusable water bottle and not only you will save hundreds of dollars per year. but you will help the environment too. If you live in an area where water is full of chlorine, you can use a Brita Pitcher at home to reduce chlorine taste and odor, often found in tap water.
7. Make your own greeting cards
AVERAGE SAVINGS PER YEAR: $100
Greeting cards are a thoughtful touch, but making your own birthday, Christmas or Valentine’s cards is so special (and you’ll save at least $5 on each card). Plus sometimes regular old cards just don’t say the right thing!
By making your own, you will be able to create something personal, cheeky and fun!
Found on Almost Makes Perfect
8. Cut some restaurant meals
AVERAGE SAVINGS PER YEAR: $800 (per person)
On average, people spend over half of their monthly food budget on eating out. For example, If you go out for dinner twice a week and spend an average of $15 per meal each, you end up spending over $1,500 a year per person. Don’t stop going out but by reducing the number of times you go out by half, you could easily save $800 a year.
And to help you to cook more at home you should try meal planning. It’s been a revelation for me!
Planning meals in advance helps you to know ahead of time what you are going to cook the following week, allowing to know exactly what you need before heading to the grocery store. This is a great way to eat healthy meals while saving money and reducing food waste.
If you have never tried meal planning before, I recommend trying the $5 Meal Plan to get you started!
For just $5 per month, you will receive a delicious meal plan, where every meal will cost about $2 per person (or less)!
9. Stop buying trendy clothes
AVERAGE SAVINGS PER YEAR: $500 (per person)
We all want to look trendy and wear what the cool kids are wearing. But this can trick us into spending a lot of money on clothes that won’t last and won’t look right the next season. It’s much better to invest in a couple of timeless quality pieces every season, that you can keep for a longer time.
Classic clothes don’t have to cost a fortune, and you can wait for seasonal sales to get them at a great price. It just means you won’t have to deal with a closet full of bell-bottom pants in a few years!
Another trick you can use is to limit your clothes color palette. By choosing only a few colors, you will avoid having to buy different sets of accessories and you actually expand your options – as all the colors you wear work together.
And declutter…
And another great way to save money on clothes is to declutter your wardrobe and sell what you don’t need online. You’ll be amazed by how much money you can make with stuff you don’t even use anymore.
Find out how you can save more by making more, with my guide to selling clothes online.
And once you made a bit of money, you can put it aside to reach your saving goal!
10. Cancel your gym membership
AVERAGE SAVINGS PER YEAR: $800 (per person)
If you really use your gym membership, there is nothing wrong with that! But most of us just buy a yearly membership and forget about it. If you divide the number of times you are actually going to the gym, and the money you pay, I bet you are in for a shocking surprise.
There are much cheaper ways to stay healthy: go to pay-as-you-go classes, go for a run in the park or consider taking your workout routine at home!
I love doing free yoga classes in my living room for free! And I’ve never been healthier!
11. Avoid brand-name drugs
AVERAGE SAVINGS PER YEAR: $150 (per person)
Generic drugs brands contain exactly the same ingredients as brand-name drugs and they are always much cheaper. Estimates say that you can save at least two-thirds of your annual drug costs by switching to generic drugs.
Don’t buy familiar logos for marketing reasons.
Always check the labels and go generic!
Are you ready to save $5000 in a year?
By reducing your spending on these 11 things, you can save an average of over $5,000 ($5,130 exactly!) and if you convince your partner to take part in the saving money challenge too, you can save an incredible $9,560 a year.
How much can you do with that? You could both go on the holiday of your dreams!
The most important thing is to understand that you don’t have to deprive yourself! You can cut your spending by doing many things that will add up over time.
Let me know how your challenge is going! You can do it!
READ MORE ON MANAGING YOUR MONEY:
If you are interested in starting your own blog, have a look at my step-by-step guide! I will show you everything you need to do to start a successful money-making blog!
Check out all the best resources for your blog! I find all these resources so valuable and I am sure they will help you as much as they helped me.
JoeHx says
I pack my wife’s lunch everyday and bring my own lunch (frozen meals, not the healthiest, but better than eating out). I also drink the free coffee at work (which I jokingly refer to as “rot-gut”). This has saved us a ton of money over the past couple of years.
Sara @ Gathering Dreams says
Wow, you are doing pretty well then 🙂 Lunches, dinners and coffees are a killer! The first time we added up how much we were spending on that, we were shocked! Everybody keeps saying it, but when you do your own sums it really makes you stop!
fin$avvypanda @ finsavvypanda.com says
Hey Sara!
Thank goodness I’m not a lottery ticket fan. In fact, I actually dislike them… hmmm.. I wonder if I could’ve made it big with the lottery tickets haha…*shrugs* maybe I missed an opportunity LOL!
Overall, this is a fantastic list you have here! 🙂
My fiance and I are working to cut down the restaurant meals and we’ve been doing a pretty good job at that by making food at home.
Sara @ Gathering Dreams says
That’s why I played the lottery for a few years! Now I can definitely say I haven’t missed the opportunity…I have just lost some money that would have been better invested somewhere else! 🙂
Making food at home and buying less coffee are the 2 big savers here! It’s incredible how much money you can throw away!
Janet says
Totally agree with everything this post, especially plastic bottles. I can’t stand when restaurants don’t serve tap water and want me to pay for a bottle of water. I never drink bottled water for a reason (to save money yes, but more importantly, to save the planet).
Also I’m pretty proud to say that I basically don’t buy anything on this list!
Sara @ Gathering Dreams says
Completely agree, Janet!
Saving the planet it’s a much better reason than saving money! But if you can help save the planet, and save some money at the same time, great 🙂
It’s amazing you are not buying anything on this list! Your saving rate must be pretty good!
Chimere says
Lottery and casinos, ice coffee and cigarettes are my worst habits I waste a lot of money on. I am a couponer, so I save tons on the grocery run. I will attempt to save by excluding all the bad habits. I have summed the lottery and cigarette money and that’s 3000 but itself. Praying for this to work out.
Sara @ Gathering Dreams says
Wow, Chimere! That’s a lot of money. Put that aside in a savings account so you won’t be tempted to spend it!
Margarita says
Books are important. You invest in your education. Also paper books can be part of your home style. And if you have kids, it’s easier to make them read if you have a couple of attractive paper books.
Sara @ Gathering Dreams says
I completely agree with you, Margarita! Education is one of the things you should invest more in. I try to read at least 2-3 books a month. But it doesn’t mean you have to spend a lot of money on books! You can still get books from the library and enjoy them that way for free, or get them at charity shops for little money. I am not saying to never buy books, but everyone should be mindful about it.
Meagan says
These are great tips! We are planning a vacation next year and I think these tips will help us save up a lot quicker. I recently started packing my lunch and only ordering water at restaurants. I will be using more of these tips!
Sara @ Gathering Dreams says
Yes, every little helps and it adds up quickly into your savings 🙂
Lisakaman says
I will definitely change to adjust my life style and practice these great tips.
Sara @ Gathering Dreams says
Hey Lisakaman, I am sure you will save lots of money by following these tips! You can do it!
Penelope says
Hi!
I’ve tried the other challenge before (Saving over $1000 in a year), but unfortunately only got up to the $300 mark. (which was still a lot for me). This year, I am determined to do it again with a better focus. Not sure what I will be saving for, but the start of this school year (university) will be a better fit for me with my student funding coming in. Looking at it like a goal and taking it week-by-week, rather than something that’s impossible to do will hopefully help me 🙂 Any other “mindset” advice with this would be great!
Sara @ Gathering Dreams says
Hey Penelope!
What really works for me, especially when you are still trying to improve your savings habits, is to move the money you want to save straight into a savings account automatically as soon as you get your paycheck. That way you really don’t think about it and you won’t have the money there to spend. You can start with something small like $50 in the first month and increase it a bit every month. It’s super easy and you will save without thinking about it! You can log in to your savings account once every 6 months and see the amazing progress 🙂
Good luck!
Sara
Neba says
Wow…
Thank you for the great tips.
Will be sure to put them to practice.
Sara @ Gathering Dreams says
Thanks Neba! 🙂
Jill says
Hi. Ive tried downloading your 52 week challenge multiple times and nothing happens. I’ve checked spam as well. Can you email me the challenge template? Thank you!!
BTW ~ Love your blog. So inspiring and helpful
Sara @ Gathering Dreams says
Sorry about that Jill! I sent it over 🙂
And thanks for your lovely comments!