In this 3-5 minute article:
- Where do you keep your change?
- Do you keep you change?
- Saving change
- It adds up!
Everyone hates change… It’s bulky, most wallets aren’t meant to carry it, and the monetary denominations are so small, that many of us don’t think much of it. However, it can really add up by the end of the year.
One of the easiest ways to save a little bit of extra money is to save your change when you pay in cash.
Let’s look at an example:
This morning, you decide to start your day out by buying a latte. The total comes to $5.32 and you give the barista $6.00. They return your change to you and you put it in your pocket. Later that day, you go to lunch and spend $9.45. You hand the person at the register $10.00 and they return your change to you. Your final purchase of the day is a new phone case for $20.13 and you hand over $21.00 and get your change back.
At the end of the day you have a pocket full of change, and a couple of options:
Option A would be to forget about the change and get rid of it. Obviously this would be a poor choice!
You go with option B and decide to place it into a container where you store all of your spare change. Today you’ve been able to add $2.10 to your change jar! You’re your first purchase you added $0.68, $0.55 from your second, and $0.87 from your third.
Let’s say you have similar spending habits for the year:
If you take $2.10 and multiply it by 365 days in a year, you end up with an extra $766.5 in your pocket. Not bad for carrying around some small coins in your pocket each day!
However, although you’re keeping all this money, it’s important to realize that in this example, you spent $34.90 in a day. Over the course of the year that’s going to come out to be $12,738.50. It’s obvious most of us would not be purchasing lattes, lunch, and phone, cases every day. If you’re a habitual spender, this method of saving can help you begin to get more comfortable with stashing away extra money!
More savings tips to come!