Benefits of Saving Pennies, Cash, or Bank

In the digital age, we’ve got countless options for managing and storing our money—bank accounts, apps, digital wallets, and more. But despite the convenience of electronic payments, there’s something about cash that still holds a special appeal when it comes to saving. Whether you’re looking to build an emergency fund, save for a specific goal, or just try a more tactile approach to saving, using cash can offer unique benefits. Ive found that its a suitable option for me to save without thinking.

The Surprise Factor: One of the main Benefits of Saving Pennies, Cash, or Bank and One of the most enjoyable (and somewhat surprising) ways to save cash is by using a money tin—specifically, one that you can’t easily open or see inside. These money tins are designed with a one-way slot, meaning once you’ve put cash in, you can’t access it until the container is full.

• Out of Sight, Out of Mind: Since you can’t see how much you’re saving, you’re less likely to take out small amounts here and there, which can derail savings efforts. The surprise factor is key—when you finally open the tin after months of saving, you’re often amazed by how much you’ve accumulated in such a short amount of time.
  

• Psychological Commitment: The fact that you can’t count or access the money makes it easier to stick with the habit. There's no temptation to withdraw “just a little” for something you don't really need, and the feeling of excitement when you finally break open the tin is a rewarding way to see your hard work pay off.
  

It’s a simple, almost childlike method of saving, but for many including myself, it provides a sense of achievement and satisfaction that digital or bank-based savings can’t match.

The Hidden Stash: The Power of a Hiding Place Another method that some people find effective is saving in cash and keeping it in a hidden spot—be it a drawer, a safe, or somewhere in your home that only you know about. But here’s where things get interesting: the psychological aspect of keeping money in a hiding place often makes it harder to dip into it...

• The Barrier of Effort: Unlike transferring funds between bank accounts or tapping your phone to pay, accessing cash you’ve hidden requires effort. You need to physically go to the spot where the money is stashed and take it out. This small barrier of effort—getting up, going to the location, and physically retrieving the cash—actually acts as a deterrent. The more effort it takes, the less likely you are to take that money unless it's absolutely necessary.

• Conscious Decision Making: When cash is hidden away, every time you consider accessing it, you need to consciously decide if it’s really worth it. Unlike the instant gratification of digital payments, the process of “going to get the cash” involves more decision-making, which gives you a moment to pause and think. That brief moment can be enough to stop impulse spending in its tracks.

• The Mindset Shift: When your cash is out of sight and out of reach, you may start seeing it as something “untouchable” or “for a purpose.” It becomes less like regular spending money and more like something you're saving for an important goal—whether that’s a vacation, an emergency fund, or a special treat. This mental separation from everyday funds helps reinforce the idea that it’s “off-limits.”
  

The Challenge of Cash: The Temptation to Spend

While saving in cash has many advantages, there are also some challenges. Cash can be hard to track, and without a clear record of your spending, it’s easy to misplace or forget about it. Plus, carrying cash around can sometimes lead to spontaneous spending—it’s all too easy to make small purchases without realizing just how much you’ve spent until it’s gone.

Also, if your cash is stored at home, there's always the risk of losing it or not being able to access it in an emergency. For these reasons, some people prefer digital savings options, where everything is neatly accounted for and already tracked for how much is there.

Benefits of Saving Pennies, Cash, or Bank

So, is cash easier to save? The answer depends on the person. For those who find it challenging to save digitally or who are tempted by the ease of online payments, cash can be an effective tool for building a savings habit. The tactile experience of saving, the surprise factor of the money tin, and the effort required to access hidden savings can all help reinforce the act of saving in a meaningful way.

That said, you don’t have to choose between digital and cash savings—you can combine both. For example, use cash to save for a specific goal (like a holiday) and keep it sealed. At the same time, use digital savings accounts or budgeting apps to track your overall financial health, set goals, and ensure you’re on track with larger savings targets.

Final Thoughts:

In a world where digital payments are the norm, it’s easy to forget the old-fashioned way of saving—cash money. Whichever method you decide the act of physically saving cash can create a sense of discipline, provide a tangible goal, and help you resist impulse spending. While there are certainly challenges to managing cash, the psychological benefits of out-of-sight savings and the effort involved in accessing it can make it an effective tool for reaching your financial goals.

So, next time you're thinking about how to save for something special, consider going back to basics with cash. For me with a commissions role also, I can manage to put away small useless change and noted each week which easily builds up and I can forget about it being there and not with me when I'm on the go meaning I wont just waste it!