4 Reasons Why You Really Ought to Keep the Change

We live in an interesting time. On one hand, we’re reminded to be mindful, to slow down, to live intentionally. On the other hand, the automated life is increasingly gaining traction—from self-regulating thermostats and cars that drive themselves, to apps that can assist us with just about everything.

And there’s nothing wrong with some automation. By unburdening ourselves with minutiae, we have more time for the things that really matter. But with all of the choices that we have for outsourcing, it’s easy to lose sight of how, in some cases, actually doing the work might be better (and enjoyable, even).

Take, for example, saving. In the good old days, we had three options: a savings account, a mattress, or a ceramic pig. No matter which one you chose, you had to manually deposit your money in order to build up your savings.

But now? Automated options abound. Transaction-rounding apps like Acorns or services from many, many banks will round up every purchase to the nearest dollar and move the difference into a savings or investment account for you automatically. All you have to do is set it up, go about your normal spending, and you’ll save money automatically! 

But should you actually leave your saving strategy up to an app? Are you really saving money with automated services? Consider the following.

1. You can’t automate real life change.

The problem with rounding apps is that they shuffle your money around while you’re not looking, taking you out of the process entirely. Even though saving is a good idea, removing yourself from the decision to save isn’t. The key to financial success is to Give Every Dollar A Job, and that requires you to decide exactly what each of your dollars should do before you spend (or save) them. 

Intentional trade-off decisions with your money will lead to actual behavior change. Planning and spending with a purpose—that’s the secret sauce, not blindly moving money into a separate account. 

And, think about it. Once you’ve established your goals and planned exactly how your dollars can help you achieve them, do you want an app moving things around on you? You might actually need all of the dollars that you assigned for groceries because you already stashed as much as possible into specific savings categories for the month.

And, if you’re a YNABer that uses a rounding app, consider that you’ll have to account for not just your transactions, but all of the change that’s automatically moved by the app to your savings. It would be easier to decide what to save ahead of time, and then stick to your plan!

2. Purposeless saving isn’t saving at all.

If you grab any random person off the street and ask them, “What does it mean to save money?” they’ll probably say something like “putting money into a savings account.” But the truth is, there is nothing special about putting money in a separate account. If you don’t save with a specific purpose, it doesn’t matter where your money is being stored. There’s nothing stopping you from simply moving that money back to checking and spending it without intention. 

But if you save with a clear purpose in mind, you’ll be forced to make a trade-off decision when you reallocate those dollars. It’s fine to spend money that you’ve been saving for a different purpose, but it’s important to know exactly what you’re giving up when you do. 

Budget Nerd hot take: all saving is spending.

‍Saving money is just delayed spending. It’s deferring the use of your money for a specific purpose. And that has nothing to do with accounts and everything to do with intention. Rounding apps and services may help you put more money into a savings account, but they won’t help you save. 

3. It may reinforce spending behaviors you might want to change.

Maybe rounding apps appeal to you because you just love to spend money? If automation seems like the best solution to your non-existent savings, then consider that these apps might have the opposite effect than intended. It’s easier to justify splurges if you feel good about saving a little in the process—and I can’t stress the ‘little‘ enough, especially as it relates to the expense of your purchase!

If you want to change your spending behavior, stop focusing on spending less, but instead on spending right. If you feel you have a spending problem, you need to change the incentives. “Keep the change” programs are about hiding money and fooling yourself. YNAB guides you in discovering real, compelling reasons to create a behavior change. I don’t have to tell you which method is more likely to stick with you long term.

For more help on changing your behavior around money, sign up for the Change Your Money Mindset email series!

4. You’ll miss the best part.

Finally, make saving a fun and meaningful pursuit. It’s a lot easier to stick with your goal when you know your why. And that’s what YNAB is all about. Yes, it requires more attention than a set-it-and-forget-it app, but you’ll get so much more out of it. That’s because when you face your situation and analyze the difference between where you are now and what you’d like your life to look like, you’ll be compelled to save more consistently.

It’s no longer “no big deal” to spend another fifty bucks because you’re well aware of what you’re sacrificing to spend it. Maybe you want to have zero debt payments. Maybe you’re dreaming of moving to your favorite city. Maybe you just want to retire comfortably. YNAB is your plan to make it happen. 

And aren’t your plans worth more than the few cents that are left after you buy your coffee to go? Imagine what you could accomplish if you started spending and saving more intentionally. When your savings goals are aligned with your true priorities, you’ll find your best life is worth so much more than spare change.

Are you tired of automated solutions that don’t really change your life? Try a financial method that puts you in the driver’s seat. Sign up for a free 34-day trial of YNAB today.

YNAB IRL: Finding the key to freedom

Tasheena Barret experienced the power of intentional saving. Before YNAB, Tasheena always had to scramble when something unexpected happened.  With YNAB, she saves more intentionally so she can reach her financial goals faster and with way less stress.

It’s been so good for me to plan ahead for true expenses instead of fitting them in after the fact.

Even though I never had any credit card debt, what I did before was just as stressful as being in debt because I had to take money out of my future budget for something I had already spent money on.

With YNAB I am proactive about my true expenses and feel like I have more control over my finances.