I recently read a post by The Norwegian Girl regarding old school savings method of piggy banks and remembered my two success stories in the past that I completely forgot about. Yes, there’s no interest accruing in the can or jar or whatever you put your cash into, but I make less than .5% in my savings account anyway. It really doesn’t make much difference. Like I mentioned before, motivation is really important for me, so for me to know that physical cash is stacking up inside the piggy bank will push me to put more in it to fatten it up.
Niagara Falls, Canada
I used this method twice in my adult life for specific goals. The first time I did it was when I was saving money to take my mom and my brother to Niagara Falls in Canada. I was in my mid 20’s and was making very little money with no concept of personal finance. I was just living day to day and pay check to pay check. But I knew I wanted to take this trip. So I started putting cash and coins I had on me every day to this piggy bank. Sometimes I didn’t have any and sometimes I had a quarter. But I continued to dump all I had in that piggy bank. My birthday money, Christmas money, coins on the street, or what have you all went in there.
It took me two years to save $2,000.00. So finally we took the trip. It was a great feeling to eat whatever we wanted and buy whatever we wanted with cash on vacation without worrying about credit card bill that will crush me later. Flights, hotel, food, rental car, entrance fee, pictures, souvenir were all paid for with cash and $2,000.00 was enough for three of us for three day trip. We were poor after moving to the U.S., so this was the first family trip in a decade. My mom was so happy and we all had so much fun.
The second time was after I started dating my now husband. I suggested that we put cash in a piggy bank to save up for a trip. We spent a lot of time at his house and we saw each other every day, so I set the piggy bank at his house. In 6 months, we saved $1,800.00. We took a back packing trip to Costa Rica for 10 days.
We had to be frugal when we were there, but it was a backpacking trip after all. We stayed in hostels and ate a lot of arroz con pollo (rice with chicken). We met a couple of people when we were in Motezuma and ended doing an Isla Tortuga (turtle island) tour together for a day. In the evening time, there was a thunderstorm and we ate at this small restaurant under a small lamp eating great food and chatting together until very late at night with rain drops as background. It was truly a memorable time.
Have you guys tried this method and if you did, what did you do with the money you saved in your piggy bank?