When I went to the bank to take a fist full of dollars to the bank in exchange for a savings bond I was chatting with the teller who was looking at me askance since I had so many singles. I told her that I took them out of my wallet whenever I got some, because they didn’t fit in my wallet well. Her response was “ I always though about doing that but I always use my debit card so I never have any cash.”

Hmmmm… I wonder how many people are in the same boat if they use their debit cards more than using cash for everyday purchases. It may make me seem like a Luddite, but by using cash for daily purchases I am able to keep track of what I am spending. I know my limits and when I use a credit card or debit card sometimes I can lose track of purchases.

Back to the bank teller, I told her that by using cash and putting my dollars away that it was basically like free money and an easy way to save.

Saving is one thing but what is the purpose of saving money? Is the goal to reallocate for another purpose or saving money to actually put aside for short term or long term goals? Saving money on a haircut in order to afford that extra coffee isn’t allowing you to get ahead. Though I have never proscribed to the put the money aside that you have saved by using a coupon or by buying on sale theory, it could work for someone. Coupons and sale items makes your money go farther yet spending less on some items and pocketing the extra cash for unnecessary items can lead to unhealthy habits.