I was given a challenge last week by the Mozo team to see how much I could save by using the Rounding Up savings method. And I can tell you this was the easiest challenge I’ve ever taken on because all I had to do was spend money.
The Rounding Up method is pretty simple and is an effortless savings solution for ‘someone’ who finds it difficult to save and I’m definitely that ‘someone.’ How it works is every time you make a purchase, you round up your transaction to the next dollar and deposit the excess into a savings jar (or a piggy bank!).
For example, today I strolled down to my local cafe and ordered a tuna sandwich and a skim latte totalling $10.50. I rounded up my purchase to $11.00, with $10.50 going to the friendly barista and $0.50 going into my savings jar.
Looking over my weekly spending from last week, I was pleasantly surprised to see that I spend way less than I thought and I’m a Gen Y! From Monday to Thursday my spending was pretty limited. Usually consisting of my daily return train ticket and takeaway lunch because I’m too lazy to bring my own. As would be expected, my spending increased over the weekend, thanks to a few friendly beverages.
Some lessons I learnt over my Rounding Up experiment week were that I eat far too much junk food and the little things count. My overall weekly spend was $384.40 and my total weekly rounding up savings was $30.60. This might not sound like a lot but over a year this will amount to $1621.80. That’s more than enough for my end of year holiday!
Of course, not everyone can be bothered to diligently round up and put money into a savings jar. Luckily a few financial providers now offer Rounding Up as an automatic feature, such as the St.George SENSE and the Bank of Melbourne SENSE. If this doesn’t tickle your fancy, try the Rounding Up experiment for just one week (like me!) then set up automatic weekly deposits to any high interest savings account, to the equivalent of the Rounding Up amount – easy!
The ultimate reason for using the Rounding Up method is to help you save with little effort. If you make a conscious effort to round up to the next dollar every time you make a purchase and put the excess into your savings jar (savings account) whenever/wherever possible, the rounding up feature will help you (yes you!) become a saver.
Here’s a closer look at my spending over the week and the daily Rounding Up. Keep in mind that I’m a recent uni graduate, living at home, otherwise known as a Kidult, so my spending won’t be as high as some of you out there!
Monday: Train ticket ($4.20), Thai stir fry ($8.50), gum ($1.95), bottle of water ($2.20)
Total spend: $16.85 Total Rounding Up: $2.15
Total spend: $12.70 Total Rounding Up: $2.30
Wednesday: Train ticket ($4.20), pork roll ($4.20), green tea (3.50)
Total spend: $11.90 Total Rounding Up: $2.30
Thursday: Train ticket ($4.20), chicken sandwich ($7.40), milkshake ($5.60), magazine ($4.95), bottle of water ($2.20)
Total spend: $24.35 Total Rounding Up: $2.65
Friday: Train ticket ($3.40), Thai food ($23.70), club/bar entry ($8.50), pretzels ($7.30), 2x vodka lemon, lime & bitters ($6.40 each), 2x vodka lemonade ($6.10 each)
Total spend: $67.90 Total Rounding Up: $5.10
Saturday: Can of coke ($2.50), hot chips ($5.60), sunscreen ($11.45), shampoo ($9.10), conditioner ($9.10), pedicure ($35.20), skirt ($34.50), thongs (29.05), movies ($21.50), popcorn ($9.10), large coke ($6.50), x3 Beer ($6.20)
Total spend: $192.20 Total Rounding Up: $9.80
Sunday: Coffee ($3.20), bacon and egg roll ($6.10), 2x DVDs ($6.50), salt and vinegar chips ($3.20), Maltesers ($3.20), can of coke ($2.50), petrol ($25.10), bottle of water ($2.20)
Total spend: $58.50 Total Rounding Up: $6.50
TOTAL WEEK SPEND: $384.40
TOTAL WEEKLY ROUNDING UP: $30.60
Every one has their own savings secret (cash under the mattress). What are some of your unique ways of savvy saving?