Suppose you are trying to save money to build an emergency fund or for something similar. You have decided that you are going to begin saving by using a coin jar. At this same time you are saving for this fund, you also want to save toward a purchase of something you want, but do not absolutely need. How do you decide how much to put toward each of these?
There’s a fun game that you can play to save for both at the same time. While you could divide all money that you have over and above your budget evenly or at specified percentages toward each fund, there is also a way to make saving for both a bit more fun. What could be more fun than flipping a coin to decide where the money goes?
There are a couple of ways that this game can be played. When you arrive home, you take out all the coins in your pocket. Designate “heads” as your general fund while “tails” is for the purchase you want to make. Flip a single coin to decide which of the two funds all the coins go toward that day.
Another option that’s more fun is flipping all of your coins. Each day, when you empty your pockets, set aside all of your coins. Flip each coin with all “heads” going to the general savings, and all tosses resulting in “tails” being added to the savings fund for the purchase.
Since it is completely random into which jar the coins will go each day, you are forced to save for your general fund while also having fun as your purchase fund grows. This enables you to make your purchase (maybe a little later than you would like,) without sacrificing your general savings in the process.