Sunday, October 14, 2007

Small Change

Saving all your small change in a tin (that can't be opened until you need it) or a jar is a good way to save for an emergency or extra savings. I personally save all our gold coins in this tin and when it's full (nearly is for the third time) I whack it all on the mortgage. This size tins usually holds between $350 and $500 depending on whether you have more one or two dollar coins. :) As a rule I don't spend gold coins so that at the end of each day if I've spent cash I check to see if I have any gold for my tin.

When you keep a change jar, never take from it, just keep addding adding adding. Half the fun is the surprise at the end when you open it and count. Only count it when you are ready to transfer it to a bank account or to pay off a debt.

You can also add to your savings by adding notes here and there. I occasionally add a $5 note or a ten, I've even added the odd $20 before.

If you are debt-free, add it to your savings account or use it towards a holiday.

For those of you earning a good weekly wage, you may think saving small change is a bit trivial. But living frugally whether by choice or need is all about small steps.

So think about starting a change jar. If you give up a few things and save all your small change, you'll be able to pay off your mortgage faster or take a family holiday without using the credit card.

1 comment:

Kez said...

Ours is being used for spending money on our Xmas trip - I'm not sure how much is in it, I've been a bit slack adding to it, but it will all be "free" money!

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