On a previous posting (September 15th) I mentioned a faster way to save your money was to save your singles (as in dollar bills.) As of yesterday’s count, I have saved $30. That’s an average of $10 in singles saved per week. If I continue to save at this rate, in one year, I will have $520. That money can be used to take a mini-vacation, invest, buy Christmas/birthday gifts, add it to my emergency fund or just simply save it. The options of what to do with the money are endless.
The way to accomplish “saving your singles” is to use the cash method. Withdraw your budgeted allowance at the beginning of each week… AND STICK TO SPENDING ONLY WHAT YOU’VE WITHDRAWN. Today, it is so easy to whip out and swipe our debit cards. My bank has the “Keep the Change” program, where the remaining change from a debit card transaction rounded up to the nearest dollar, is deposited (usually into a savings account) that’s tied to your checking account. I’m sure your bank has something similar. “Keep the Change” can be beneficial because it is often used as overdraft protection. The problem is, some banks charge a fee each time overdraft protection is applied. I try to keep a “cushion amount” of $200-$300 in my checking account to avoid these fees. The “Keep the Change” program works for some people, but how many people do you know actually allow the money from the program to accumulate over time, then withdraw it? I don’t know any. For me, the temptation to spend it is too great. Technically speaking, the only reason I keep the Keep The Change/overdraft protection savings account is to avoid paying the monthly fee for my checking account. I prefer the “Keep the Singles” method better. Truth be told, there’s something about the “tangible.” I can see the dollar bills, I can hold and count the dollar bills, and most importantly, I can sock the dollar bills away in my piggy bank… Then hide the piggy bank. Out of sight, out of mind right? Problem solved. Money Saved.
Let me know if you incorporate the “Save Your Singles” method or a similar method of saving money by commenting below. I’d love to hear from you.
~The Financial Hack ©2015