Until about 2 months ago, I had always used a Debit or Credit card to make all of my purchases. Whether this was a $.50 pack of gum, or a big screen T.V.. I was under the impression that this was the best way to manage your money, but I think I might have been wrong all along.

I was talking with a friend, who unlike me, uses cash for all of his purchases. I really couldn’t understand that, simply because the debit card route seems so safe and convenient. So I was surprised to find out that he actually switched from plastic to cash to save money. Save money? How?

The Plan

It’s really quite simple actually. During the course of a regular day, he spends his cash, and puts the change in his pocket. At the end of the day, he takes all the bills and change out of his pocket. He then separates the $1 bills from the 5′s, 10′s, and 20′s, and puts the dollar bills and coins into a cigar box he keeps. The large bills go back into the wallet, and the process starts all over again the next day.

It made sense to me, but I was still a bit skeptical, and really didn’t see how I would save enough to really see a difference. Well, as I have been so many times before, I was WRONG! After the first month of repeating this process day in and day out, I sat down and started counting the contents of my savings box. To my absolute shock, I had a grand total of $190.46! The best part about the plan, is the fact that I didn’t feel a financial strain in any aspect of my life. It took some getting used to at first, as I made way too many trips to the bank, but after the first week I was hooked.

What You Need For This Plan

• A cigar box or the like.
• Discipline
• Large pockets or purse.
• A car to make your weekly bank trips.

I know it sounds goofy and far too simple, and those were my initial thoughts exactly. After implementing for a couple months now though, I can see the benefit, and am on pace to save over $3,000 this year just following this simple plan.