Cash Management Tips: Don’t Make Change

Small change that is.  One of the best ways that people find to not spend money is to keep money in large denominations.  For whatever reason, many people (including me) find it much easier to spend small bills like $5 and $1′s rather than breaking large bills like a $20. Hasn’t it happened, that you were tempted to buy something small, or get an extra item, but didn’t want to break the next large bill.  Here are other wallet management tips:

–Keep an extra $20 tucked into a secret compartment for emergencies – this way you have it if necessary, but don’t think of yourself as flush with cash.

–Maintain a change purse with adequate coins so that something that is $5.12 can be paid for without breaking a large $20 bill.

–If you keep a jar with change accumulating on your dresser, take it in to a bank or coinstar and convert it to large bills.

–If you go out with friends or colleagues for lunch or coffee to socialize, plan a budget for how much you want to spend before going, so that you aren’t caught off guard. For example, plan to have a large cinnamon tea, and not the blueberry scone, so that you aren’t tempted to browse and graze. This is not only frugal but better for the waistline.

–Keep adequate change for tipping, especially when travelling. Good cash management shouldn’t come at the expense of people who depend on tips for a living.

shared at Frugal Friday