Feed the pig!
In the beginning of my senior year in college I found myself with a very abstract travel dream. I knew I wanted to take an extended backpacking trip when I graduated, but I had very little idea where to go, and I definitely didn’t know how I was going to pay for it. There were clear indications of a dream begging to be realized, but the uncertainty and lack of funding were daunting, to say the least.
With graduation well over a year away, I knew there was plenty of time to obsess over travel blogs and decide on the perfect destination. That was going to be the fun part.
The money was the real issue, and I knew it. Up to that point I’d been completely incompetent at saving money. I knew a thing or two about spending binges, but I was purely a rookie when it came to financial self control. Defeating my irresponsible spending habits wasn’t going to be easy, but I was determined.
I started small.
When I say small, I don’t mean 10-15% from every paycheck into a savings account. Even that was far too robust for me at that time. When I say small, I’m talking about a piggy bank- the undergrad version anyway, a 2 gallon Carlo Rossi wine jug. I had my travel savings receptacle ready to go. And more importantly, I had two simple rules that, if followed, would eventually fill it.
Rule one- Respect the value of spare change- Kids seem to be acutely aware that the accumulation of spare change can yield powerful results. We teach them to value quarters, dimes, nickels, and even pennies, which they often do with fantastic results, yet we forget to remember this important lesson as adults. From the moment I started my savings jug, I was adament about depositing my loose change into it. I set a mark about a third of the way up the jug, and vowed not to count the money until the change had reached that level. Eager to get there, I found myself paying for things in whole dollar increments, even when I had the change to avoid it. I became fully invested in the accumulation of cents, and the jar became heavier and heavier as the days and weeks went by.
Rule Two: Cut out $2-3 from the budget every day- This was where the magic happened. Every single day I looked for a way to save $2-3- skipping the gas station energy drink, ordering a smaller item on the menu, sharing an entree, cooking at home, seeking free entertainment, etc. Not only did I find it to be extremely easy, it was also great fun. The choices I made didn’t feel like sacrifices at all- they often involved finding healthy alternatives to excessive consumption, or exploring certain opportunities in my city that I hadn’t known existed. Saving $2-3 became a game, and one that I loved to play. Each day I’d stuff a couple ones, sometimes even a five, into the mouth of my savings jug, until six months later…
…the change reached the line. I’d done it. With great joy I dumped the contents of the jar onto the floor and began counting it by hand. One hour and $500 later, the world had opened up in a way that was completely new to me. I couldn’t afford an entire trip just yet, but I could afford a plane ticket, and that was enough to make the dream feel real. I shopped around for a few days and purchased a one way ticket to Lima, Peru. The months of waiting and continued saving that followed, as well as the 2 months I spent backpacking through South America, came together as a crucial lesson in saving and delayed gratification. Never before had I felt so accomplished, independent, or free than the moment I stepped foot on Peruvian soil. It’s a feeling that sticks with me to this day.
I saved $500 in 6 months, and it couldn’t have been more painless. It was as if the money had been created out of thin air. Just to illustrate the power of this simple savings method, here’s some simple math.
$2.50 per day ($2 cash, $.50 change) for……1 week= $17.50…1 month=$75…6 months= $455…1 year- $900…2 years- $1,800…10 years- $9,000
Imagine the feeling of accomplishment you’d get after having the patience to generate $9,000 in this way. Pretty powerful, isn’t it?
Update: Having used this strategy for the duration of my time in Seoul, I will soon be cashing in my change and low value bill collection in order to purchase a $450 camera lens I’ve been drooling over for some time. It would normally give me considerable anxiety to spend this kind of money on a lens, but again, because I saved slowly, I am experiencing nothing of the sort. In fact, I’m happy to spend the money. It feels good to know that I had the patience to wait for something I really wanted.
