You are at the grocery store and you buy $33.22 worth of groceries; for your two twenties you give the cashier, you get back one single and one $5 bill. Put that $5 bill into savings.
My wife and I have been doing this since November, and already, in less than three months, we have saved $175. That is a savings rate of approximately $60 a month.
More importantly, that is $60 we didn’t think we had to save. Sometimes it is painful to put that money aside, but in the long term, it is worth it. Of course, this method works best if you routinely pay in cash.
The fun part comes when you only have a $20 bill for a $4 purchase and you get three $5’s back (yes it does happen)! Stick to your guns and put those fins away in a safe place.
If you just can’t make yourself save the fives or you’re in a particularly tight financial situation, start with $1’s instead. It may not seem like much, but the savings will add up like crazy!
Potential Monthly Savings: $30 – $80