Saving Pennies Can Add Up To Thousands of Dollars

by Hank

My wife and I only use dollar bills when we buy things.  We refuse to use any coins we may have in our pockets to make purchases even if the result is getting ninety-nine cents back.  Then, when we receive a pocket full of change after our purchase, we save it all in a piggybank at home.  After a year of doing this, we usually have saved over $500 each year.  That’s a very non-intrusive way to make yourself save when you think money is tight at the end of every month.

This is a lot like the new debit cards that are out there that will round up to the nearest dollar.  These are great savings devices especially if you think that you do not have enough money to save for a rainy day.  One of my former Soldiers told me that they use a jar method like this, similar to envelope budgeting, where they save all their change throughout the year in a Mason jar in order to pay for their 4th of July fireworks.  He was also teaching his children to save for a goal.  The more they saved, the larger their firework display could be.

I have even heard of people doing this “save your change” trick with $5 bills.  Every time they received a $5 bill through making purchases, they would then set the $5 bills aside and collect them in a piggybank.  That seems a little extreme to me, but it would surely raise your savings rate dramatically in a very short amount of time.  I think that this same system will work wonders with $1 bills though.  Every time you make a cash purchase and receive a $1 bill as part of your change, save it.  Keep them at home in a piggybank until you get $100 or any nice round number and then deposit your spoils into your bank account.  Try it out for a month and see how it goes.  No cheating.

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Ian January 24, 2011 at 4:01 pm

I’m a bartender, and every night I work I keep the loose change instead of cashing them in for bills, and put it in a glass beer “boot” at home. When it fills up I roll the change and deposit it into my savings account. I’ve been doing this for about 2 months now; the first time I rolled the change I ended up with $63. The second time it was $101! This past month I also started doing the same with $5 bills. I plan to count/deposit the $5s at the end of every month so I don’t know how much I have yet but it’s very exciting.

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