Saving Your Pennies

It's no secret that many people are struggling in the current economy.  With many people unemployed or under-employed, most are realizing the value of frugality and care in their purchasing decisions.  Even people who are fully employed have become more cautious in spending and saving.

My grandfather did not get a credit card until he was in his seventies.  Even then, he never carried a balance.  He always paid it off every month.  He and my grandmother grew up during the Depression years.  The only purchase they ever made on long-term credit was their home and farm, which they purchased through the GI Bill.  Otherwise, they paid cash for everything.  My grandmother always raised a big garden, and she sewed most of her own clothing and home decor items.  If they needed to make a large purchase, such as a car or home appliance, they saved up until they could pay cash.  Because of their frugality and commonsense approach to their finances, when my grandfather passed away, he left my grandmother well-provided for in her old age.

In the last several decades of rampant spending, families largely abandoned the thrifty ways of their grandparents (I must admit, I am no exception here!).  Many people charged their credit cards to the max, lived paycheck to paycheck, and stopped setting aside money in savings.  But since the Great Recession hit, people are going back to a philosophy of prudent spending and saving to try to stretch their dollars further.  They are cutting up the credit cards and paying them down, and setting aside a rainy day fund.  Even baby steps can help you save those pennies that add up to dollars.

I have started socking away all my spare change in my "Magic Money Jar" - I call it that, because the more I put in it, the more I have :)  Whenever I pay cash for something and get money back, it goes into that jar.

Saving your change and small bills in a money jar is a painless way to save up for things you really want, or for emergencies or rainy days.  I always have cash on hand if I need it, and those pennies, nickels, dimes, quarters, and dollar bills really add up over time.  When the jar is full, I can put it into a savings account and start filling it up again.  It's one of the small ways I can practice the prudent financial frugality that helped my grandparents have a comfortable, well-funded retirement.  And it's never too late to start!

Do you save your change?  How are you practicing frugality in your daily life?

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