Less may be more in a lot of respects, but when it comes to personal finance, more is definitely better. Ideas should be scalable. Why double when you can 10X? In a world so focused on growing gaps, increasing income, and building entrepreneurial empires, it makes sense to focus on more. Still, after reaching some pretty serious financial milestones, I still find myself getting just as excited about bronze and silver as I do about those crisp evergreen bills…and direct deposit.
Spare Change
I still pick up pennies. And quarters. And whatever else I can find to squirrel away in my piggy bank. In fact, I would argue that there is no feeling quite like setting out on a walk and stumbling across a few cents or finishing up your grocery shopping at Aldi only to discover that someone failed to return the cart so now you get the steps and the quarter. It’s equal parts nostalgia and delighting in the unexpected that keep me stooping over for spare change.
Mobile Apps
In many respected, I traded my extreme and extremely stupid coupon habit for spending apps. Ibotta, Checkout 51, Receipt Hog, Shopkick, MobySave. I think I have them all. What’s more is that I use them fairly regularly. There’s definitely a right and a wrong way to use them. If you’re not careful, these apps can end up using you. Still, I probably have about $200 waiting to be cashed out on my phone, with $171 sitting in Ibotta alone. I can’t say that it adds up quickly, but it does add up. (And oh my gosh, is it the most exciting thing ever when someone signs up with my link and they get a $10 bonus, and I get FIVE WHOLE DOLLARS. ::squeals with delight::)
Reselling Clutter
I have been back in the Poshmark game for a few months now. The effort I have put in has been just about as minimal as it gets, but I am still raking in smalls sales on a fairly regular basis. $13 here, $5.05 there. This isn’t going to make me rich. I’m certainly not going to open a boutique or a business flipping designer items and discount finds. Instead, I am perfectly content accepting pennies on the dollar as I look to streamline and simplify my life.
Why I Still Haven’t Changed
There has been a lot said about chasing pennies lately. A lot of people want to chalk it up to a scarcity mindset. While I certainly know what it is like to be in precarious money situations, I don’t believe that explains my current situation. I also don’t think it is because I believe in setting smaller goals. Don’t get me wrong. I can dream big with the best of them. So it’s not that either. Why, then, do I still get so fired up over a few pennies here and a $5 payout there?
The short answer: All my pennies have a purpose. Let me explain. While I probably never will master the art of picking up pennies (or playing poker) like my nana, I did pay close attention to what she did with all of those pennies. They rattled around in a red Pringles can on top of the shoe cubby in the back of her closet. Once the can was full, she would walk the 1.4 miles (one way!) to her bank and deposit the money. She would also flutter into her room for a handful of coins at the first mention of Pinochle or poker. It was equal parts savings and fun money, and I have started looking at these little earnings here and there the same way.
Sometimes, I use the money to cover the cost of jaunts to Vegas or giving during the holidays. Usually, I use the money to chip away at our mortgage or to meet other savings goals. I would certainly never deny the power of increasing income exponentially. Nor would I turn down a small fortune inherited from a thrice-removed long-lost aunt. But when it comes to money, at least in my mind, a little matters a lot.
So Tell Me…Do you ever feel like you are chasing pennies? Do you mind?
Why not chase pennies and dream? Sounds like you are doing both 🙂 I’m not sure if you have ever tracked all of those little wins in a given year. They really do add up. People might say – so it’s $400 or $500 big deal. YES IT IS A BIG DEAL. It’s (mostly) tax free money too – and how many extra hours would you have to work to make that? Again – you have to balance time and energy, but chasing pennies is in some of our DNA thanks to our nana’s. And who would want to trade that? Not me.
Revanche at A Gai Shan life even has a page on her blog that tracks all of her little wins for the year. I should copy her! The only thing I track in a spreadsheet right now is money from decluttering. Maybe I will expand it!
I think that concentrating on the little things in life helps us with the big. When I start focusing my efforts on my little spending, I inevitably save exponentially more during that time period. Maybe that’s not true for everyone, and there is definitely a benefit to learning to spend money strategically. But if I’m careful and thoughtful about little bits of money, I find that translates into better spending/ saving/ investing decisions overall.
You’re right! I think it is an awesome starting point to sorting out the bigger financial picture.
I have a few hilarious moments when I realize I’m chasing a $1 savings when a raise at work is clearly more important and has a bigger impact, etc. But I also find the small savings can be a fun way to keep motivated (especially for regular expenses like groceries) and gamify finances a bit 🙂
That is important, Mrs. AR. To not chase pennies at the expense of dollars (time, salary, etc.).
I once kept a journal of the money I saved buying gasoline at off brand places instead of name outlets. Over the course of a few years, I saved about $35 a penny or two at t a time. I gave it up when my then girlfriend, now wife, made fun of me (the only time I remember giving up a frugal habit for that reason). Pennies matter, not because of their worth, but because they imply something. If pennies don’t matter, do nickles? Dimes? Where is the line drawn? If pennies always matter, then dollars will too. If they don’t, well, . . .
I wonder that. How much money do I have to make before I stop caring? I once had a student explain to me that Bill Gates loses money by stopping to bend over to pick up change. Don’t care! I’m picking it up! Maybe if I get to his bank account status I’ll stop…but I don’t think so!
Here’s the thing. You’ll probably always care. I’ve been FI for some time now, but still chafe when I know I’ve misspent a dollar or two. Will it matter to my family in the long (or short) run? No. But habits built on a lifetime don’t easily wither.
Sure, we’ve got to set the big wheels in motion (like maxing out your salary, education, living debt free) but the micro-actions are the daily motivators, I think. Once my mindset changed to “my money has a purpose” I’ve enjoyed frugality even more, including picking up pennies and saving plastic bottles for redemption, coupon chasing, travel hacking etc. I enjoy knowing that every little bit gets us closer to our dreams.
That is an awesome point, Karen. And I’m jealous that you can redeem plastic bottles. I love when frugality and eco-friendly living overlap!
Huh, this is interesting because I still struggle with a scarcity mindset and I DO chase pennies, even though as you said the big wins are where it adds up fastest. I think in my case maybe, the chasing pennies is the fun part, and the worrying about the big expenses comes more from a scarcity mindset since my salary isn’t huge for someone who lives in DC. Sounds weird, but the more I think about it, the more true that seems.
I absolutely love all of my savings apps, and one of my favorite things to do lately is keep my receipt after I go grocery shopping and transfer the money I saved buying things on sale over to a savings account I keep for that very reason. It’s been awesome watching that number grow through zero extra effort!
I love that! I struggle with savings/spavings because there are honestly so many things that I wouldn’t buy if they weren’t on sale. I try to let meal planning AND weekly ads determine what we eat for the week. It would be an interesting experiment for sure!
I used to, but now I don’t. I chase time instead.
That’s such an important statement!
I try to only chase the pennies that bring me joy. There’s very little I will chase for pennies anymore. I used to walk to the grocery store 10 minutes further away to save 50 cents a gallon on milk. I won’t do that anymore.
I even took them off our net worth statements! I decided that the seventh figure plus the comma and the decimal and two decimal places was too wide and got rid of them. The spreadsheet looks much tidier now!
That’s so funny that you say that. I don’t budget to the penny (but I do track to it!).
I gave up chasing the pennies in favor of focusing my effort on my career and now I am making 200% of what I was making five years ago, I’m more professionally satisfied, our family life is happier and less stressed, and we are saving more than ever. I had to stop visiting three grocery stores to get the absolute beat price on everything, or even time spent looking for coupons or the savings apps – my time is better spent earning than saving. It’s been really freeing. I still make the more frugal choice when it is as easy as any other choice – I bring my lunch unless I have a business lunch – but I let the pennies go.
I agree with most of this! I don’t coupon anymore, and I do just about all of my shopping at Aldi. Loss leaders are such come-ons anyway! I suppose if I could earn overtime or things like that, maybe I would feel differently. But for now, snapping a few photos of my receipts is pretty painless. Plus, it helps if I need to return something later. Inevitably, I’ve recycled the paper receipt!
I still chase coins, as well as dollars, because they do add up. But having the luxury of time during retirement makes quite a difference in my perspective. Although really it doesn’t take much time or even much chase to find that extra money. Plus it’s like a game to see how much I can save or earn.
The gamification of money is so fascinating!
We just had a chat on Twitter about this. I don’t mind spending the odd five or ten minutes a day chasing pennies when they add up to substantial dollars in the end or if there’s benefit to the environment for my effort like keeping things out of landfill. My deal with myself I won’t give up money that’s literally just there for the picking and I have to drop anything that bets ONLY pennies but requires increasing amounts of time. Also for every pennies-level chase, I have to have a dollars-level chase to balance it out.
You should totally have a side income page too 🙂 it’s excellent perspective!
I love visiting your page. And I never told you…now that I have my Fitbit going, I think I’m actually going to get the Amazon gift card from Achievement (linked from your page, of course) before I die. Ha! It goes so much faster now!
I agree with this perspective, Penny. Some times in the larger scheme of things, we easily forget the little things that can often mean much more than their magnitude.
While a lot of people scoff at the Latte factor, I really think there is merit to it. So many times, the little things add up to something bigger.
Personally, I have revelled in small wins. However, sometimes it is difficult for me to maintain that considering my husband is all about the larger picture :-/
That would be challenging if he usually looks at things from a different perspective!
At my, comparatively, poorly-paying gig I somtimes feel that I am chasing pennies. But I remember that 1. This is the first gig in nearly six years where I am having a pleasant experience, and 2. I’m diligently working on a skill to double my gig pay. Until I get to the higher pay, I definitely need these pennies to keep me afloat. And I need the pleasant work environment to remind me that such a thing is possible.
This is such an important comment, ZJ. Focusing only on higher-paying things dismisses not only the enjoyment that some of the “pennies” bring, but also the necessity of them, right?
I feel like I just read an article about myself! All of these small amounts are deposited into my “Thrifty” account. I always like to see how much I’m able to accumulate by the end of the year. Whether it’s through couponing or finding money, it’s money saved. And it does add up! I average around $2k every year that is completely fun money without the guilt!
I love that you have a “Thrifty” account. I normally only track when I make (re-make? earn back?) from re-selling my clutter. Maybe I should track it all!