Back in college, I remember my roommate telling me about his habit of collecting 5-peso coins. He would empty his piggy bank every month and show me his savings. I was always surprised to see how much he was able to accumulate at such a short period of time. I asked him one time what he does with the money and he simply said that he uses it to buy himself something nice every month while keeping the rest in his savings account.

Thinking about those times made me realize how effective his strategy was to stash away some extra cash every month. I now call it the Picky Piggy Bank strategy.

Here’s how to do it:

1. Choose a denomination that you often come across with but small enough that you can afford not to spend it. To my fellow Pinoys, I recommend the 5-peso or the 10-peso coin but if you’re feeling bold, try the 20-peso bill.

2. The cardinal rule is that you are not allowed to spend the chosen denomination, so everytime you receive it you are supposed to keep it.

3. When you get home at the end of the day, stash the chosen denomination into your piggy bank.

That’s it!

So what do you do with the money? It’s really up to you but I suggest putting it in your savings account and use it for future investments. You will really be surprised at how easy and effective this technique is in saving you money. Moreover, it is a practical application of the principle of abundance.

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Photo courtesy of SXC