It can be hard to save money (whether it's your emergency fund, paying cash for Christmas, or saving for your next car). You might feel overwhelmed with all your current expenses and feel like you don't have anything extra to save for the future.
However, here's one easy trick to help you save money towards your goal – save your change! If you add an average of $0.50 in change to your change jar every day for a year, you'll have $182.50 saved without even missing it. This is a great way to save without even notice the money disappearing.
Tips for Saving your Change:
- Pay for purchases with dollar bills – Each time you make a purchase, use $1 bills (or $5, $10, or $20's) to pay for purchases. Don't pay with any of your change – instead save it for the change jar. Some banks also have a program to help you round up purchases into savings when you register for the program and use your debit card. If you prefer to use a debit card, you could check if your bank has a similar program.
- Set aside a place to add your coins each night – Dedicate a container to save your coins. It's best if you can see through the jar so you can see your pile growing each day (and give you motivation to add more change).
- Add money to the jar for additional savings – If you spent less on a category than you budgeted for the month, consider adding that saved money to your jar. For example, if you have an Entertainment budget of $20 and only spend $10, add the remaining $10 to your savings.
- Don't raid the change jar – Unless it's an emergency, don't be tempted use the change for any purchases.
- Have a plan for the change and label the jar – You'll have more success in saving your change if you know exactly what you plan on using it for in the future. As an added reminder, put a label on the jar so you see it every day when you add your change.
- Find out how to deposit your change – Contact your bank to find out how you can deposit your change periodically into your savings account. Can you bring it loose or do you need to roll it? Avoid Coinstar machines since they take a cut of your cash (about 10%).
What about you? Do you save your change? Has it helped you increase your savings?