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Friday, November 7, 2014

Find a penny...


 


     Find a penny pick it up, all day long you'll have good luck - have you heard this saying? It's popular here in America, it is popular in Poland too. We have something very similar there. If pennies bring you luck why don't we bother to pick them up?

     I keep finding pennies, nickels and dimes quite regularly. I must admit however, that 25 cents are rarity. Nevertheless, if my eagle eye spots a penny I will pick it up! Here is what I noticed though; some people look at me in a funny way when I pick a coin up. I wonder why? It is still money, is it not? My friends on the other hand joke about me finding pennies constantly. In fact, some time ago one of my friends, let's call her Magda challenged me on our walk from one bar to another. The challenge was who will find a penny first. She said that I keep finding the pennies because I look for them, which is not true. She figured out if she will look for them too she will spot a penny too. Well, it did not go as planned because it was still me who found the penny.

     I have to admit to something here, I truly believe that finding a penny will bring me luck. I honestly do! I consider myself very lucky girl - it must be all these pennies. Just checked in my lucky penny goblet. This month pennies are worth little above $2.00. It got me wondering, how much would I save in a year? I think I will test this, starting 2015.

     When I visit my friends, I see pennies, nickles and dimes usually in random places collecting dust. I never understood that. It is like treating the coins as if these were not money. It is crazy. How often do you go to buy a coffee or a gum and the checkout bill reads $5.32. What do you do? If you have five dollars you pay with it and dig the $0.32 from the valet. What happens if you keep the change at home? Now, the five dollars is useless because it is not enough. Next you have $20. You know how it goes, once you break your bigger bill it disappears much faster, doesn't it? Having little change on you would not only save the $20, but also would slow down how fast the $20 will be spend since it is still $20.

     Another option for abandoned coins are these machines that count your pennies, that can be found in supermarkets. Collect all your coins in one place and once its is substantial then you can go and exchange for bills. This pleasure will cost you 5%. I personally do not like to get $0.95 per each $1.00. So, I never use it. Also, I never have this much coins around  anyway, as I spend them as I go to save my big guys in my valet.

Here is a kicker: Have you ever heard of compounding interest? If you find pennies to amount of $5 per month. And you were to save it at 5.0% per year for 30 years, here is what would have happen:
source: www.investor.gov

  • Now, lets do our calculation: $5 per month per year (5x12 = 60) 
  • for 30 years (60x30 = 1800) would accumulate to $1800. 
  • Therefore this would be 233% return on your investment.
  • There is your Parada purse and Christian Louboutin for pennies a day :)


What do you do with your pennies? Save it or spend it? Let me know... 

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