Saving Money – Rounding up Saves Big In the Long Run

saving-moneySaving Money – Rounding up a Little Results in Big Savings over Time

Saving money is highlighted as an exceptionally difficult task, according to most. Not only do you face the task of determining which, of the many, money hacks will work for you, but, you also have to determine which technique will allow you to save up cash and bring about long-term, highly sustainable results for your financial future. While there is an abundance of information readily available on the subject of saving money – such as books, websites, blogs, radio shows, television shows, and courses – many continue to struggle with the task of saving up money. In most instances, the inability to successfully save stems from agonizing over choices we must make in life, schedules that are too hectic, and consistently living in a state of “want” and experiencing high levels of dissatisfaction if our “wants” are not met. Making smart financial decisions, productively planning how our money is spent, and creating a spending plan that is not only workable to our current circumstances, but optimizes our financial future are critical aspects when it comes to saving money. Today, you will be introduced to a concept that turns your small change today into huge profits tomorrow. This concept is referred to as, “Rounding Up”.

What is “Rounding Up”, as it Pertains to Saving Money?

Rounding up is one of the most popular and age-old money hacks in the history of the financial world. When engaging in this act, you simply force yourself to round up each transaction when spending money. Not only does this allow you to save a few cents, it opens up the door to also allow you to save a few dollars each time that you spend money. The goal is that, over time, you will accumulate a large amount of money based on the small change that you saved as a result of rounding up. Many of us end up with additional change in our pockets at the end of the day. By taking this change and placing it in an interest-bearing savings account, you have the potential to save a great deal of money. As you continue reading this guide on saving money, you will learn how to apply the concept of rounding up in your day-to-day life.

Rounding Up Cash Transactions

One of the most productive money hacks involving the concept of rounding up is to ensure that all of your purchases are made with cash. You should attempt to avoid using your spare change in order to hit an exact number when paying for each of your transactions. For example, if you purchase a small breakfast for $4.50, you should pay for the meal using $5.00. Once you receive the 50 cents from the transaction, you should place that amount in a bank at your home. Once the bank is full, you should add up the total amount and then deposit it into the real bank – where your savings account is located. If this purchase is a regular purchase, you could – potentially – save $3.50 a week. At the end of the year, that total is $182.00. If you placed it in a savings account that offers you 2% interest, the total changes to $185.64. That is not a bad amount of savings!

Rounding Up Checking Accounts

If you would like to engage in a completely painless and exceptionally easy rounding up program, you should consider rounding up in your checking account. For example, if you have to write a check for $92.00, simply round the amount up to $95.00 or even $100.00 to allow yourself to save $3.00 to $8.00! You do not have to simply round to the next dollar amount based on change, you may round by $1.00, $5.00, or even $10.00 – the choice is yours!

Rounding Up Debt Payments

If you owe money on a loan, credit cards, or other types of debt, you should round up those debt payments upon making them. Loans and credit cards carry the highest interest rates of all debt. By simply rounding up the amount that you pay each month, you will be able to eliminate these debts more quickly than if you just elected to make the monthly payment. For example, if your credit card payment is $25.00 a month, you may benefit by rounding that up to $30.00 and paying the extra $5.00 each month. Additionally, you may keep a record of all purchases made with that credit card and, at the end of the month, round those up and pay the difference on top of your monthly payment. For example, if you made 3 purchases of $59.82, $27.00, and $84.01, you could round the first to $60.00, leaving 18 cents. You could round the second to $30.00, leaving $3.00. You could round the final purchase to $85.00, leaving 99 cents. In total, that would make $4.17 that you could put with your minimum payment.

Rounding Up Your Mortgage

In addition to loans and credit card debt, the most common type of debt is your mortgage. By rounding up the amount that you pay on your mortgage, you will be applying more money to your principal. Every single dollar that is put towards the principal reduces it. This means that, ultimately, you will pay less in interest each month. This will reduce the total amount of the life of the loan. For example, if your mortgage is $341.00 a month, simply round it up to $345.00 a month. That will put $4.00 towards your principal extra each month. Before engaging in this type of rounding up, be absolutely certain that your lender does not impose a penalty for extra payments. If you find that you will incur charges by taking this step, simply round up the figure and keep the extra money in a personal bank at your home, in your savings account, or in a cash deposit box. Then, as you near the end of the mortgage, perhaps you could use the money for a quicker payoff or for home repairs and/or improvements.


Saving money does not have to be a challenging endeavor. There are many money hacks that you may engage in that will allow you to save quite a bit of money. Rounding up is considered to be one of the most popular methods for putting aside money. By rounding up your cash purchases, your debt payments, and your mortgage payments, you will discover that it is possible to save a tremendous amount of cash. There are many stories documented about individuals who have acquired enough money to fund large purchases or certain stages throughout life, such as retirement, by simply rounding up. By taking this step in saving money today, you may be the subject of such story!

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