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5 Benefits and Drawbacks of Keeping a Change Jar

November 28, 2019 By MelissaB 3 Comments

Do you keep a change jar? My mom keeps all of her change and has been saving it for the last two years for a vacation. She is not alone as many people hoard their change as a way to save money, especially if they feel they’d otherwise be unable to. However, just as many (or more) argue that keeping change is a waste of time and space. Both sides have valid points; I find there are 5 benefits and drawbacks of keeping a change jar.

Benefits to Keeping a Change Jar

There are benefits to keeping a change jar, which is why so many people do so, even in this age of prevalent credit card usage.

Save for Something Special

5 Benefits and Drawbacks of Keeping a Change Jar — Photo by Deanna Ritchie on Unsplash

Have you ever seen the big five-gallon jugs that people use to collect their change? One man saved for 10 years, and when he cashed it in, he had over $3,000, which he used for a trip to Europe. Would he have saved that money without keeping his change? He says no. If you don’t have the discipline to save, keeping your change is a good, mindless way to save.

Cash Emergency Fund

Another woman saves her change for a rainy day. She and her husband had an expensive car repair that they hadn’t planned for, and they robbed all of their budget categories to pay in cash for the expense. That left her with no grocery money for her family of four for the month, so she raided her change jar. She had $224 in there, which she used to feed her family. It was still a tight month, but she didn’t go into debt, and her family didn’t go hungry.

Drawbacks to Keeping a Change Jar

Unfortunately, there are risks and expenses with saving this way.

Could Earn Interest

One of the major drawbacks to keeping all of your change in a jar for years is that you miss out on the interest you could be receiving. Take the man who had $3,000 in change. He could have invested his money as he saved and been earning interest. He would have made more money than he did just leaving it in his closet.

May Lose It All

An even bigger drawback is that you have the potential to lose all of the change. A friend of mine had about $120 in change she’d been saving, and, unfortunately, her house was robbed. All of that money was gone. Even if your house isn’t broken into, you could lose the money if you have a fire. Even teens have been known to dig into their parents’ change jar for a little extra money.

You May Pay a Fee

A select few banks still offer coin counting machines for free, but many won’t take coin rolls. If you have to rely on CoinStar, you’ll pay an 11.9% fee, so if you turn in $300 in change, you’ll pay $36 in processing fees. If you need to pay a fee this high, is it still worthwhile to save your change?

Saving change has been a fun way to save money, but as these 5 benefits and drawbacks of keeping a change jar demonstrate, it’s becoming increasingly costly. If you can have enough self-discipline to save the money on your own in a bank or invest it, that is the better way to save.

Do you save your change? What benefits and drawbacks do you see?

Things to Avoid When You’re Broke

November 25, 2019 By MelissaB Leave a Comment

Most of us have been there. You have three dollars in your checking account, and it’s five more days until payday. You may feel overwhelmed and not sure what to do. Unfortunately, many people in this circumstance feel that there is nothing to be done and, out of desperation, ignore their situation – continuing to live life as if their finances aren’t dire. However, all this does is make the situation worse. Instead, consider things to avoid when you’re broke so even if you’re not improving your situation, you’re not making it worse.

Things to Avoid When You’re Broke

Using Credit Cards

When you’re broke, credit cards can feel like a lifeline. For a while, at least until you reach your credit limit, you can continue to maintain your current lifestyle. But, this is a mistake! You’re broke! If you admit that and are frugal with your money, once your current financial hardship ends, you’ll be in a position to improve your finances. However, if you have to pay back thousands of dollars of debt, you’ll still be broke. Please don’t make this mistake.

Paying for Entertainment

Entertainment is expensive. Movie tickets cost $10 or more; a meal out costs $10 to $40, depending on where you dine. Netflix costs $13 a month. All of these expenses add up over 30 days. If you’re broke, don’t pay for your entertainment!

Go to the library and check out a movie for free. Attend a local free concert at the university. Invite friends over for board games.

Nobody says you can’t have fun when you’re broke, but find ways to be entertained that don’t cost any money.

Not Having a Budget

Burying your head in the sand is easy when you have no money. If you ignore the situation, it won’t exist, right? Wrong. Ideally, you should be budgeting every month, but this is even more important when you’re broke.

You have limited money, and you have to decide where that money should go. When you have a plan that you can follow, you’re much more likely to not overspend. Having a budget and following it is absolutely necessary when you’re broke so you don’t make your financial situation worse.

Hiding Your Situation

Don't Do These Things When You're Broke — Photo by Ali Tareq on Unsplash

Being broke is embarrassing, but being honest with your family and friends is the best way to handle the situation. If you’re not honest and you pretend that everything is fine, your friends may be offended when you repeatedly turn down invitations. If they know your situation, they may be more willing to find things you can do together without putting a financial strain on you.

Things to Remember When You’re Broke

Even though at the moment you may feel hopeless, remember that you’re likely not going to be broke forever. You will get a better job or have fewer expenses in the future (probably the former rather than the latter). Your financial situation will improve, but that improvement can come faster if you make sure to consider these things to avoid when you’re broke. Don’t make your future more difficult by making bad money decisions when money is tight!

This December Save Money with No Spend Days

November 11, 2019 By MelissaB Leave a Comment

While the holiday season often means seeing family and taking time off work, it is also typically a time of high expenses. In fact, you may spend more in December than you do any other month of the year. All of this spending can lead to a holiday hangover in January as you look at your empty bank account and credit card balance. But it doesn’t have to be this way. This December save money with no spend days. You’ll be so glad you did when January rolls around.

How to Implement No Spend Days

No spend days can be a great way to save money. December is a challenging financial month, so it’s best to start having one or two no spend days a week in November. By December, you’ll have accrued extra money to use in the most expensive month of the year.

What Is a No Spend Day

Save Money by Not Spending — Photo by Clay Banks on Unsplash

On a no spend day, you don’t buy anything. No morning coffee at the local shop; no online purchases, no matter how great the sale; no lunch out with coworkers; no stopping by the grocery store for a few items—you simply do not spend money on that day. If you want to stretch yourself, try it for two or three days in a row.

Why Have No Spend Days in December

There are several reasons to have a few no spend days in December.

Learn to Rein in Your Spending Impulses

Money gets away from us easily in December. We feel bad that we may not have spent as much on presents as we perceive others have spent, so we add on a few gifts. We may want to give the hostess of a party a nice bottle of wine. We may want to tip the hairdresser more generously. On and on throughout the month of December, there are little and not so little expenses that chip away at our money.

A no spend day or two allows you a chance to take a break from spending. When you take a break from spending, you reset your mind. After a no spend day or two, it’s a little bit easier to not spend as much money. It’s a little bit easier to ask yourself, “Do I really have to (or want to) buy this, or can I do without or wait?” You may find waiting leads to never buying it. When you check your buying impulse, it’s not so strong, and you can experience more self-control. If you do still want to buy the item, you may be more inclined to look for ways to buy it for less.

Start the New Year without A Holiday Debt Hangover

Wouldn’t it be great if, come January, you open your credit card bill and are not faced with charges you can’t pay off? Wouldn’t it be great if your bank account balance was still healthy come January? Wouldn’t it be great if you bought gifts in a disciplined, conscious way so when the holidays are over, you just feel good about the holiday season rather than suffering from a holiday hangover?

It is possible to have a controlled spending holiday season. One way to jump start this process is this December save money with no spend days. Try to have one or two per week this month.

How do you keep your budget in check during the holiday season? What strategies do you implement? Do you have no spend days throughout the month?