A Stash of Cash

One of our washing machines has just died for the second time this year. As a white good it’s more of a white elephant. We’re currently discussing whether we should toss another hard earned $250 at it for repairs or buy a new one for $1000 (which comes complete with a splendid warranty and shiny newness).

You never know when something will happen that will require quick cash fix. One thing for sure though, with a house full of kids it will happen. We’ve had numerous operations, broken washing machines and hot water systems, car accidents, to name a few. Trouble is, if there’s so much as a fiver in my wallet, it tends to get spent.

Some people have success with putting their loose change into a jar or large bottle. At the bank we have a steady stream of people bringing in their pickle jars of coin and the odd button for us to exchange for notes. In many cases this can add up to hundreds of dollars. I have one customer who takes her family away every year with the one to two thousand she saves this way. Good for her. We couldn’t afford the postage for a travel brochure on what we’d manage to save using this method.

We save our rainy-day money in our home loan. By making higher than necessary weekly payments to our loan we build up a lump of money we can draw out whenever we really need it. Plus we don’t miss the money so much because we view it as a bill and we save a little on interest while there’s extra in the loan.

Another method you might consider is a separate savings account with a transfer set up so that it automatically comes out of your account. If you make this new account ‘both must sign’ you ensure some discussion has to entered into before any funds are withdrawn, meaning you’re less likely to spend the money on mundane stuff like pizza or a slab.

Whatever method you use, you need to find one.

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1 Comment

Luke says:

September 12, 2010 at 12:32 pm

I had $4000 in my change jar. $2 coins really add up. I bought a wallet with a change pocket to eliminate this pool of lazy money.