2007 $20 Challenge Information

[lrjohnson]

Re: 2007 $20 Challenge Information

I am confused by change savings. I never count it as income. I have not reduced my spending or earned more when I spend 75 cents and have a quarter left. I do almost all my spending with debit cards-no change, but that doesn't mean I have any less savings. My left over quarter is still in my account, it doesn't sit on my dresser for a month. I don't see how that change sitting in a change jar (which I do have, it just fills really slowly) is somehow a boost. I prefer to not get out a new bill. Taking out $40 and depositing $10 is not more smart to me than taking out $30 and having no remainder. I just don't get it. I can see for some folks who are unable to save that the BofA round up thing may help, but other than that, unless it's found money, I continue to remain confused on how it's income.

ETA: I do get a kick out of LuxLiving's change stories, I must admit.

[LuxLiving]

Re: 2007 $20 Challenge Information

It's not income to me per say-- it's a capture method for not spending what I could. I do see your point. It is income to me when it's some that my kids bring to me or that I find on the streets, otherwise it's money we've already had.

The idea for me is to capture it and direct it to where I'm currently focusing - the mortgage. For me it's an OPTIONs thing - I could conceivably spend my entire spending/allowance/blow money if I want to buying a pack of gum or a soda, but if I decide NOT TO, then I capture it and take it to the challenge. That allowance part is not income, just a saving that before the challenge might have later been frittered away. This way, once or twice a week I might capture the change or dollars in my wallet and take them over to savings.

I guess in my mind I consider myself different than the "house" budget and so in some strange mind warp I do kinda consider it income to ME from the house. This would be different in fact for a single person who is the sole wage earner for themselves.

Hope that clarifies it for someone.

BEFORE coming to Saving Advice I just did this by taking my captured change to the bank immediately and then moving it over to my online savings (Bank Runs) to start earning interest. Only then I was using it to fund my retirement (of which I guess I could consider myself already retired)...to fund my old age might be a better way of putting it. I am still trying to do both but my margins are already small, so it's difficult to come up w/dollars for both the $20 Challenge and the Bank Runs.

I guess it might be helpful for you to know that we DO already pay extra on the mortgage and we DO already have automatic drafts for funding my Roth IRA, so this is a way to capture ADDITIONAL funds for those things. It is above and beyond our normal allocations.

Maybe someone else who is saving change or bills has other reasonings for doing it this way...I'd enjoy hearing their explanations as well.

[tinapbeana]

Re: 2007 $20 Challenge Information

i save my change and my bills b/c it has cut down on my spending. i wind up saving approximately 25-30% of my monthly allowance by saving change and bills, whereas before is pent it b/c it was 'fun money' allocated to be spent.

and to be honest, it saves me a little bit of time and frustration, too. no more looking for change in the car at the drive through, no more digging through my purse looking for a penny at the grocery check-out. just hand the person a $5 or higher and get on with it!

[lrjohnson]

Re: 2007 $20 Challenge Information

i save my change and my bills b/c it has cut down on my spending. i wind up saving approximately 25-30% of my monthly allowance by saving change and bills, whereas before is pent it b/c it was 'fun money' allocated to be spent.

Okay, this I can see. The money starts off in the fun allowance categroy, but gets moved to the savings category. You are tricking yourself, a bit, to spend less in allowance. You could just reduce the fun allowance by a few bucks, but, this way it's a little les spainful and a little more fun, I'm guessing.

And with the extra towards mortgage, that makes sense too. Freefloating money becomes laser pointed at a particular debt.

So now I can at least understand some change savings. For me, unspent money goes to savings, so it's all the same if that unspent money is in my acocunt or in a change jar.

Re: 2007 $20 Challenge Information

Count me in. I've been saving "extra" money in a coffee can and calling it my 'bread,milk and eggs' money. I'll count it out and post the total on my blog.

[tinapbeana]

Re: 2007 $20 Challenge Information

nice to have you join us, nic!

[sjmey]

Hopefully this is makes it to the 20.00 challenge room. Because I am in. I really dont know what i want to do as of yet. there are a few ideas but nothing firm yet. But I am excited about this challenge. Becasue it forces me to look out side the box.

One thing I have been toying with is actually paying myself 25 cents whenever I discuss this sight or others like it. For instance when I help someone who is struggling with money issues by giving them advice or sharing ideas that I have learned over the years.

What do you think of this idea? One thing it forces me to think of ways of saving money and helping others.

I can't call it a hobby but I really enjoy reading and listening about ways to save and invest money. I am really happy I found this site.

A side note:
Many thanks to all of you. Since reading a lot of archived info from this site, I opened a seperate savings account. I call this my dream account. What to put in it? You guys and gals opened the flood gates for me. So many ideas. Many thanks.

This is what I did to start my account! It made perfect cents to me. LOL
I decided to take a personal history of my interest over the past five years, from CDs and savings savings accounts. I am really focussing in on Compound interest and all. I decided not to move money from my investments. That was too confusing. I didnt get into any of the investments. Just simple savings.

Its not a lot but I opened my dream account with 500.00. From now on I will add my interest into this account. I want to watch it explode and grow.

[Ima saver]

sj, welcome and glad you have joined the challenge. I pay myself a $1 for every mile I walk and everytime I do 20 flights of stairs. I also save all money using coupons or my store advantage cards. Many of us do surveys for money, like Pinecone and we save that. There are lots of ways of adding to your $20 challenge. good luck!!

[Amorphous02]

I am sooo in. I also count my earnings via icardbonus.com gift cards.
I have acquired the "Keep the change" benefit from BOA.
I have saved $2000 in groceries in the past 10 mos.
Have saved 60% of my allowance, 30% being spent on loans to the needful.
Savings since Jan 2007 = $2610
April looks very lean.

[Gailete]

2007 challenge

I did the 2005 challenge and ended the year with close to $700. I then got busy and a bit sloppy about trying to save those little odd bits that came my way, so I want to jump into the 2007 challenge and continue and improve upon what I was doing in 2005.

My ING account that I opened in 2005 has just been sitting there with about $90 in it. At the same time we have a bank savings account where the mortgage is automatically deducted. For the past month I have been setting aside 1/4 of the mortgage and 1/52 of the yearly taxes into that account. Well it pays 1.25%. I realized for not much trouble I could deposit the money weekly into my ING account and then drop the morgage money into the bank acount as needed. So that is one way to make a bit more in interest.

I've been catching up on posts today and realize that keeping frugality in the front of your mind, helps make it easier to put it into action.

Gail

[Fred333]

$20 to 700 that is pretty nice. After ready this challenge I am going to try it out too.

[Aleta]

Fred333: This adds up faster than you can imagine and because it has its own category that belongs to you - you have direct responsiblity in building it up.

[k1w11]

I'll see what I can do but I am definitly interested and my friend in this forum told me a lot about you and that you would be able to help me in several areas which would be interesting to learn once I know a little more how to move aorund in this website.

[JanH]

I'll see what I can do but I am definitly interested and my friend in this forum told me a lot about you and that you would be able to help me in several areas which would be interesting to learn once I know a little more how to move aorund in this website.

Are you Tina's friend? She mentioned you joined. Welcome! There are a lot of great ideas on here!

[myself]

This could be a tough one.
We (my wife and I) recently borrowed about $130,000, with $0.00 out of our own pocket.
And when we're done (around Nov 19, 2007 - Dec 1, 2007), we'll have an asset that is worth an estimated $172,000 (and that's assuming 3% less than what the other houses have sold for in the same area for the last 6 months).
And the rents in the area will cover all the bills that are exclusively on the house itself.
And yes, this is the first time we tried this (although we've been talking about doing this for a while).