A few months back I asked readers to join me in a No-Spend February Challenge. It went so well that I figured we’d do another one at some point.
That point is now. As of June 1, I’d like to invite you all to take part in the Saved Savings Challenge.
That is, any money you don’t spend gets squirreled away (in a jar or in a special savings account) for 30 days.
After all, it’s not savings unless you save it.
Next time someone tells you he saved 20 percent on holiday shopping or $40 on a great pair of boots, ask this question: Where’s the money you saved? Chances are that it, too, got spent because suddenly there was this “extra” cash.
Of course, sometimes people are thrilled to save money on something absolutely necessary. As in, “If I don’t cut the grocery bill by 20 percent, we won’t have enough to eat this month.” Or they’re grateful to have found affordable winter boots, or a coat for the kid who outgrew his previous one sooner than expected.
But for the purposes of this challenge, “saved savings” generally means stuff like:
- Money you were going to spend before you talked yourself out of it.
- Money you saved on an essential purchase thanks to sales, traded-in scrip at CVS or Walgreens, discounted gift cards, or coupons/discount codes (CVS, et al.) or the use of store credit or coupons.
- Refunds you got from a cash-back shopping site like Mr. Rebates, Dollar Dig or Ebates.
- Money that showed up in some other weird way (more on this later).
I did a dry run for this challenge in May, after my daughter – whose own saved savings example is pretty epic – suggested that the two of us take a trip to London. Although this trip probably won’t happen until spring 2020, I want to start setting aside the funds now. That way I can pay out of pocket, i.e., without incurring debt or interfering with my other financial goals.
Hence the saved savings challenge.
Your savings may vary
Different people are going to define “saved” money differently. For example, I recently saved five percent on a haircut by using one of those discounted gift cards. That counts!
Another time, I really wanted to spend on fast food after a long afternoon of freelance writing at the public library but talked myself into going straight home. Some might not consider that as “saving” $4, because I shouldn’t have been spending it anyway. I do consider it savings because, well, I did not spend it. So I added the $4 to my May total.
And sometimes you really do have to spend to save. A discounted gift card to a place I visit fairly regularly was offering a five percent rebate through a cash-back shopping site. That was reason enough to buy, even though I hadn’t planned to spend the money just now.
But wait! There’s more! I was offered a $5 credit if I paid for my next purchase of $15 or more through PayPal. So I bought the gift card, using the $5-off credit – and was able to opt to use my rewards credit card, which means that I still got some rewards points even though technically I went through PayPal.
That’s one example of those “weird” ways I mentioned earlier. Another was using a $5 instant win gift card from the Monopoly promotion at Safeway. In addition, I got a $20.91 rebate payment from Mr. Rebates, which I also set aside.
I can’t count on these sorts of things happening, but when they show up I pay attention.
How much was saved?
With those and other tactics, I’d set aside $104.09 as of May 16. Nothing since, because I’ve mostly been home and DF has done all the shopping. With luck, I’ll save even more money in June, and every month for the next year. What’s more likely is that some months will have lots of savings opps and others won’t.
So: Starting June 1, who’s in?
Again, your definition of not-spending may be different than mine. But for the next month, keep track of ways you saved money: coupons, gift cards you traded rewards programs points to get, hitting the bakery outlet, or whatever. (Edited to add: The updates and final recap will be linked below.)
Maybe you’ll finally install an app like Gas Buddy and start saving a dime a gallon – which, depending on the length of your commute, could add up to quite a chunk of change in a month’s time.
Could be you’ll carry a lunch twice a week, or wash your own car, or walk home instead of taking public transit for eight blocks, or hit the Saturday matinee instead of opening night of a movie you really want to see.
Perhaps you’ll read the “you saved X dollars” message at the end of every shopping receipt and immediately transfer that much into your Saved Savings account. Instead of going out with friends every weekend, you’ll suggest a game night or Netflix binge one night in June, with everyone contributing a snack
Probably you have other ways to save. I’d love to hear about them. When I put up the first Saved Savings Challenge post in June, please share your savings hacks. And at the end of the month, I look forward to participants posting their totals.
Related reading:
- Saved Savings Challenge, week 1: Define “savings”
- Saved Savings Challenge, week 2: It adds up
- Saved Savings Challenge: How did you do?
Hey! I started a saved savings account a couple of weeks ago. This is on top of my normal savings and it’s tiny little bits n’ pieces: $2.77 saved at the grocery store for example. I even gave myself $1 for walking to work the other day instead of driving. So far I have $26.56 saved and am enjoying these tiny wins! I will definitely join in the challenge.
This is a perfect challenge for me. In fact in an upcoming post I documented how I captured ‘extra’ money that came into my budget (i.e. selling things, interest, cash back rewards, etc.) This seems like the next step! 🙂
Glad to see that you’re blogging again, Sharon. Thanks for joining the challenge.
Thanks Donna!
Keep going, all through June, and be sure to let us know each week how it’s going. I’ll be putting up weekly articles to check in with readers and learn about all their clever hacks.
To you, too, I’d also like to recommend this free chapter of my first book. It might have stealth savings tips you haven’t yet tried:
https://docs.google.com/document/d/1WcyrT1_92_qh6cphpc_kKvwK5O8CLumZa_rPwiFg37c/edit
I am definitely in! Love to do it. I will be putting my savings toward a vacation for hopefully in the Fall
Me too — in addition to next year’s London trip, there’s the Financial Blogger Conference. This year it’s in Washington, D.C. — and I’m going there early to do some sightseeing with my daughter. Fortunately she has enough hotel rewards points to put us up for free before the conference begins.
If you do any touristy stuff in the Baltimore area, check the website for the Aquarium to see which nights it is half price after 5:00 P.M. If you get there too early, you can go to the World Trade Center for a small fee. It is a walk-able distance from the Aquarium and you can see and take pix of the surrounding harbor area from the top of the building, as well as view the exhibits within.
I will try. I’m on vacation currently pretty much spending money like crazy so the idea of saving money in June sounds attractive. While I was on vacation I earned a free weekend night from my favorite hotel chain. The value is around $300. I could count that if it happened June 1.
I’m in! This is a great way to Really think about what you’re saving and actually do something with those monies!!
I’ve been saving less since I started my new job last summer, because I am making less.It would be good to see about streamlining my budget so I can boost my savings. So, I’m in!
I’m In, although it wont be as much as I would like to start because weight loss truly is a double edged sword (as in no summer clothes from last year fit).
I’ll try. Since my husband passed away in February I’ve had a big adjustment in monthly income and expenses. I finally got a budget together and am excited to see how it will work out in June. One thing we’ve always saved is the difference between the present cheap gas and the time when gas was $4.00 a gallon. It adds up!
Yes, it does — and again, apps like Gas Buddy will let you know where the closest cheapest gas can be found.
I’m sorry for the loss of your husband. What an adjustment, indeed, in so many ways.
Thank you. It is indeed a huge adjustment. We were married for 51 years, he was my best friend. But I know he’s not suffering now in the Lord’s presence and that helps.
GAME ON!!! I love this idea especially as I am doing it all ready. Just need to separate out what I save in the month of June!!!
This has sparked me. I’m in! (I still love all your Alaska stuff shares too by the way.)
Why, thank you! I don’t want this to become a travelogue, but the Alaska stuff always does intrigue people.
I’ve been doing something like this for years. Any time I use a coupon, get a BOGO discount, save money on gas, I record it on a pad I keep on the fridge. At the end of the month, I divide it by two, and half goes into my spending money savings account, half into Hubby’s. I need a new lap top, so I’m saving up for that. Hubby is going to a convention in June and he’ll use his money for that.
Nice. Hope you’ll share some of your successes this month.
I’m in too- my son is having a destination wedding next spring and I’d like to help my oldest daughter attend with me. No June birthdays or out of town guests so I should be able to spend less this month. I also do the dollar a week thing for Christmas but I won’t count that in this challenge. I think it’s up to $234.
Well, I’m in since I do it anyway. I count anything I was going to spend on anyway. So talking myself out of fast food — theoretically, because previous attempts have failed — would definitely count. Maybe this will spur me on to greater action (or inaction, technically, since I *wouldn’t* be getting takeout).
I’m going to join you on this challenge Donna! Maybe keep a little post it note by my desk to remind me!
With my tween kids home from school for the summer (and me too), this will definitely be a challenge! I’m in!
I’m in. I’ll post as often as possible, or as the saved savings warrant. I enjoy seeing how others save, and strangely enough I feel like I need to be held accountable for some spending. And just maybe I’ll be able to inspire someone else.
Thank you donna for sharing the 1st chapter in your book. I’ve followed you for a while now and look forward to more stories.
Thanks, Jeanne. Looking forward to hearing everyone’s stories.
I’m in! This is perfect timing for me. I want to count actual cash that I put into a savings account for my June challenge! I need to start saving some cash to pay for gas for my upcoming RV trips. I’m doing it by going without something and putting that cash I would have spent in the bank!
Thanks for the challenge.
Love it!
I am glad to see others started before June 1. I just made my first transfer of funds today. In just 2 days I found $115.00 in my budget. I used some credit card points to make an Amazon purchase(37.00). Yesterday morning I really wanted a fast food breakfast but made my own meal at home, including a fancy coffee drink (5.00). Last night I repaired my manicure,pedicure and gave myself an at-home facial which should now last another week or two (60). I really wanted to have lunch out today, but brown bagged it for another $13.00 savings.
I know I can probably do better on a daily basis, and I will be more motivated the closer I get to my upcoming retirement in October.
Donna-How are you treating points accumulations on credit cards? We use travel credit cards to help us travel for free (or cheaply). The Chase Freedom is offering a 5% points bonus for grocery purchases this quarter. I also signed up for an app called Trunow which gives you a few cents for gas purchases-it is not much (17 cents one time and 10 cents the next), but I figure it all adds up.
Personally, I’m not counting the points unless it’s to use them (e.g., I ordered a $25 gift card for someone’s birthday or cashed in for a $10 Home Depot card from Swagbucks to defray the cost of something I needed to buy). Those points will accumulate whether or not I’m part of a challenge, so I’m leaving them out.
Again, people get to count their savings any way they like. So go for it. And yeah, I’m paying for all the groceries and home improvement stuff with my Chase Card until June 30.