Never Spending Dollar Bills?

**miss_annie** · 06-30-2008, 02:29 AM

I apologize in advance if there is already a thread somewhere about this, but I looked back awhile and I didn't see one...

One of my teachers has told our classes on a few seperate occasions about his big saving strategy - he never spends $1 bills. If he wants to buy something that is $2.00, for example, he will give the cashier a $5 bill and set aside the $3 in change for savings. If he finds another $2 item five minutes later, out comes another $5 bill and another $3 goes into savings.

When he first told us that he did this I was horrified, thinking I could never possibly afford to do this, but then he explained his reasoning: You will think harder about what you are buying, and ask yourself if you really NEED whatever it is. You will cut back drastically on impulse buys, and force yourself to plan ahead.

An example: buying $1.25 bottled water from the machines at school. If I couldn't spend dollar bills I'd have to plan ahead and buy a case of water and bring a bottle with me. At $4 a case, that is about $0.17 a bottle - I would be saving over $20 a month just in water alone!
(And yes, I know I shouldn't be buying bottled water in the first place, but I haven't gotten there quite yet...)

My teacher cashed in his 'dollar fund' twice a year and used it to pay for Christmas presents and baseball tickets, but you could really do whatever you wanted with it. I just think it is 1)a good way to identify and curb wasteful spending and 2)save a bit of money.

Has anyone ever tried anything like this? If so, how did it go?? I am really starting to work on saving money, lowering debts, and just being less wasteful in general and it seems like this just might work!

**Clutterbug Jen** · 06-30-2008, 02:32 AM

Hi!

I've never done this but it sure does sound like a good idea.

I can see where if you were to have to use bigger bills to pay for things that it might just make a person stop and think before buying.

Can't wait to see what others say about this and if anyone has tried it!

Love,

Jen

**kmsinsa** · 06-30-2008, 06:05 AM

I haven't tried this either, but it makes sense.

I did try this though: I went without my debit card for a few months, and if i wanted cash for a purchase i had to go to the bank and get it, that curbed my frivilous spending a lot.

**Michelle** · 06-30-2008, 07:35 AM

I have never heard of anyone doing this with dollar bills, but I have heard of people doing this with their change. They don't spend it--they put it in a fund instead.

**Jellybeanz** · 06-30-2008, 07:50 AM

I've done this for about 8 years now.I started because we had planned on a trip to the beach for a week. I think I had like 200 dollars saved in single dollar bills when we went. That was our last vacation, but I"ve kept up the habit. I must add, I always keep around 20 dollars or so in my purse in an envelope of one's in case I'm hungry... comes in handy on the dollar menus. But of course, you gotta have change for tax...

Sooo......... I also save all my change. Cashed it in last year ( need to change that in my siggie) and got about 1400.00 altogether. I took it in in three different trips to the bank, the bank lady said she didn't want to see me again for a long time! LOL

The point is, one dollar bills and change are the easiest to save. Try it if you haven't and your budget is tight and just forget about it for a year or so, except to add to it.

It really does add up. We are hoping for a few days at the beach again either this summer or next, but regardless, it's comforting and FUN to save in small ways too.

**blitzen** · 06-30-2008, 08:27 AM

I do this! We pay cash for groceries each week, so all the singles end up going in a little box. I don't have a specific purpose for the singles, but we've used it to pay tolls on a recent trip, buy a bottle of wine or supplement the grocery budget. It's kind of a 'rainy day' fund for us. Occasionally, I put five dollar bills in there too. I find it to be a pretty painless way to save a little extra.

**cmdarlin** · 06-30-2008, 08:54 AM

This sounds like a great way to save! I already do it with my change, will have to try throwing in a few dollars especially when I'm doing the Farmer's Market right now. Always getting paid in ones.

Debbie in Missouri

**FrugalMomof3** · 06-30-2008, 09:10 AM

Sounds like a good idea and it surely would curb alot of spending that's for sure.

**TheRootedNomad** · 06-30-2008, 09:14 AM

I've been doing this with change for years and cashing it out once a year for something we'd been saving for. I'm religious about it and DH does it about 50% of the time. (I up that percentage by picking up whatever change he leaves lying about.) Anyway, it ended up being a few hundred dollars every time. We never did FILL the change jug we use though. This time we're attempting to fill it before cashing it in. Maybe instead of something like gas money to drive to a relatives there might be enough for a Vegas trip (and I might be dreamin' here) or instead of having enough for the living room to get a new peice of carpet there might be enough to get new cabinets. As for dollars though I occassionally throw the odd single or 5 in the change jug I've never just said I won't s[end any. It's probably a much better system to save dollars as the teacher sugested and would make you think more about spending the money. It is definately something to think about. I'll onder it for a few days and then discuss with DH. It might be a good savings technique for us

Thanks!!!

**freyadog** · 06-30-2008, 09:28 AM

Originally Posted by FrugalMomof3

Sounds like a good idea and it surely would curb alot of spending that's for sure.

Yep, just what I was thinking.

**DonnainME** · 06-30-2008, 09:42 AM

I just started doing the change thing. I can't really afford to do anything with bills - we need them all. I hope to be able to stay out of the change jar too.

**Iansmommy** · 06-30-2008, 10:06 AM

I think I'm going to try this. We'll see how it goes and if I really miss all of the 1's.

**Monner 1** · 06-30-2008, 10:07 AM

My girlfriend started saving the dollar bills and she said you wouldn't believe how fast they add up so now she has started saving 5 dollar bills. I don't have that kind of money to play with but the dollar thing might work.
Monner

**cheles2kids** · 06-30-2008, 11:06 AM

I really like this idea too!
I think this would be a great way to save our "allowance" money each week.
I'm going to mention it to my hubby.
I usually don't get an "allowance", but my hubby needs one, so from now on, I'm to check his pockets and see how many $ bills he can bring me home.

We are currently saving for another computer, now that the kids are teenagers and spend almost as much time on it as we do, one computer just isn't cutting it anymore.
So, that is what our change jar money is being saved for.

Thanks so sharing!!

**Holly** · 06-30-2008, 11:18 AM

I have a thread on my blog about this.
I started saving all $1 bills in April. It the beginning of my emergency fund.
Had $228 dollars saved by may 15th. then before payday my fiance had to go to Mass for a week and he had to have gas to get there.
I had to live at home for over a week with the rest and its saved our butts big time.
Now I'm back up to around $70.00 and when It gets to
$200.00 I'm opening a savings account at the bank.
It does really make you think about buying stuff but it also looks good to have all the ones growing.. ( double edge sword so to speak )