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When I was younger and paid cash for everything, I did a one-year savings challenge where I saved any $5 bill I received back as change. We didn’t make much in those years, so when I had to pay with a $20 bill for something small and got back three $5 bills, I felt the pain—a lot! But I was amazed at how much we had saved by the end of the year—close to $600! This year, I decided to follow three savings challenges for specific financial goals my husband and I have.
Savings Challenge One
My first savings challenge is to put any “extra” money I receive into my kids’ 529 plans. Because we had such low income when they were little, we only recently opened 529 plans for them. One way I plan to fund them is with “extra” money. For instance, when I return bottles and get back the deposit, that money is going in the 529s. Or, last week I received an unexpected check for $60. That’s going in the 529s. I know this won’t add up to a lot of money, but it’s another stream of revenue to add to their accounts. Every little bit helps.
Savings Challenge Two
My next savings challenge is funneling any cash back from our credit cards into a vacation fund. We still don’t have enough wiggle room in our budget to set aside money for vacation regularly. However, since I now pay all my expenses with credit cards, the cashback rewards add up quickly. True confession—I started this savings challenge last year and have nearly $1000 saved for a vacation. We hope to take a family vacation to Michigan’s Upper Peninsula this summer. Hopefully, we’ll have enough with our cashback from 2023 and 2024.
Savings Challenge Three
I realized we spent much more on groceries last year than I would like. So, for 2024, I set a goal to reduce our grocery expenditures by 16 percent. To do this, I took a few steps at the end of the year. First, we signed up to get ¼ side of beef sent to us in four installments over the year. We will use this as our primary meat source. (Luckily, I got a $150 discount.) Then, I signed up for an all-you-can-use CSA. For the 20 weeks of the CSA, I go to the farmer’s market and choose as many veggies as our family eats in a week. Considering how many we eat regularly, this should be a huge savings. We’re also going to grow a bigger garden this year.
Final Thoughts
If you’re looking for a savings challenge for this year, don’t feel limited by the three savings challenges I’m doing this year. There are many, many challenges available, so you can find the perfect one for your personality and financial situation. The most crucial step is to pick one and start. By 2025, you should be in a better financial position.
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Image and article originally from www.savingadvice.com. Read the original article here.