Can You Save $1 a Day?
I bet you can scrape up $1
every day. I know that I find that much change around the
house as I l clean off counters and the top of the washing
machine. As I cleaned my floor, I kept finding change I
needed to put in the change jar I keep on the fireplace
mantle. Every few days, I open my billfold and scrape out an
assortment of pennies, nickels, dimes, and quarters that
also need to go into the jar. So what do I do with the
change?
Well, I save it. It is,
after all, money. But also, I want to teach my kids the
value of a dollar, and how with compound interest, a bit of
savings can really add up over time. I have a goal of
putting aside $1 every day, and I usually meet it. Sometimes
I add more, especially right after I have done a few loads
of laundry. In my home, the best place to find change is in
the pockets of dirty clothes. I might even score a couple of
paper bills, and according to the rules, anything smaller
than a $5 goes into the change jar.
When Do I Empty My
Change Jar?
I am lucky because my bank
has a free change machine for customers. If you use one of
those grocery store change machines they charge you a lot.
The one closest to me charges 8%, so if I save $50, they
take $4. The bank does not charge, and the slip can go right
to the teller so she can make a deposit. Think about it. If
you can save $1 a day, that is $30 a month or $360 a year.
At 3% interest, you can save $4,000 over 10 years. If you
can get your kids to do this for 30 years, they should have
$15,000! And I made this calculation by taking a 28% tax
rate into account too.
Think a little bigger and
your savings can grow a lot faster. If you can set aside $5
a day, or $150 a month, you can save $30,000 in 15 years. If
your kids are only 15 years old, tell them to begin this
habit now, and then they can pay cash for a car (hopefully)
by the time they are 30 years old
Where Do You Get
the $1 or $5 a Day?
I know my big weakness, the
small expense that adds up into a large spending habit. I
will stop at the neighborhood drug store for a couple of
things I need, say dog treats or soap. But by the time I get
to the checkout counter, my basket is full of things I never
intended to buy. A $5 purchased turns into $50 worth of
things I just did not need. Debit and credit cards make it
really easy to run over a budget.
I have learned that I need
to take cash with me like I used to do before debit cards
became so popular. I allocate cash to myself every week and
force myself to use it to pay for things at the store.
Sometimes I blow it, and I need to pull out more cash. But I
am aware that I exceeded my budget so I do not spend as much
as I used to. Besides, it is inconvenient to find a bank or
ATM machine, so that helps limit my purchases. When I used
my debit card for everything, I would not keep track of how
much I spent so this really helps.
For example, when I am out
running errands or conducting business I may decide to stop
for coffee. If I am trying to hoard my weekly cash supply I
am much more likely to pick up a $1 cup of coffee at a
convenience store than a $5 cup of coffee at the local
coffee bar.
Try It For 30 Days
- Allocate yourself cash
to spend upon store purchases. Some weeks you may need
to pull out more money than you allocated yourself, but
that is fine if you have the money. I'll bet you still
spend less than you would have when you used a debit
card.
- Try to put all loose
change or small bills you find in a change drawer. Set
yourself a reasonable goal of finding at least $1 a day.
By the end of the month see if you have enough to make a
deposit in the bank or treat your family to a night out
that does not require using a credit card!
I think you will be a proud
saver, and these tips will get you in the savings habit. You
will also set a good example for your kids.
