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Spare Change Tips

How You Can Turn Spare Change into Savings

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What to Do With Spare Change: 9 Tips to Build Wealth

Everyone is looking for ways to build wealth. It doesn’t matter if you’re starting to build a fortune from coins and spare change because the truth is, there are no shortcuts to getting rich. You don’t just wake up one day and get rich; you need to work hard for it. According to the 2019 Fidelity Millionaire Outlook study, the average age of millionaires in the US is 66 years, meaning most millionaires require decades of years working, saving, and investing before reaching a 7-figure net worth.

Are you looking for ways to build your wealth? If so, here are some ideas you can try that include money management tips and micro-business ideas. Not only should you follow these tips but you also need to acquire the right investment attitude, which will help you persevere in turning your dream to reality.

1. Start Saving Now

People think that they should start saving once they have regular work with a steady income. However, if you start saving now, despite not yet having a steady income, it will become your habit. Once saving becomes a habit, it will not be hard for you to set aside an amount when you have a steady income. These savings, no matter how small they may be at first, will help you survive your “rainy days” and will keep you from liquidating your investments for emergencies.

2. Invest Your “Spare Change”

Investing is one of the sure ways to earn money. However, if you have limited money saved for investments, you can try to invest in “spare change” investment apps that allow you to start investing with just $5. This form of investment is popular with college graduates and younger people who are planning to build wealth at a young age due to its low minimum deposit requirement and simplicity of usage.

Before submerging yourself into this type of investment, learn its pros and cons to know if this is right for you. There are also low initial investment mutual funds offered by some mutual fund companies who are willing to waive the account minimums if you can commit to a minimum monthly investment of $50 to $100.

On the other hand, if you have long-term financial goals, you can set aside your spare change and put them in a jar until you reach the usual initial minimum required investment deposit of $500 to $5,000 for mutual funds. The important thing is not to let your savings sit inside your piggy bank or savings account. Make your money work for you by investing it. That way, you can build a fortune out of your spare change at a slow and steady pace.

3. Automate Your Finances

Automating your finances involves dividing your salary and automatically depositing certain amounts to your savings accounts for savings, emergency funds, bills, and/or investments. This way, you will not be tempted to spend your money on bill payments and investments you haven’t planned for. Every year, you can review your automated plan strategy and try to increase your transfers over time so you increase your savings and investment fund.

4. Cut Back on Your Spending

Before cutting down on spending, it would be wise to track your finances first. Remember that you are not obliged to spend all the money you earn on things you want just because your salary enables you to do so. Why not make it a goal to spend only 70 to 90 percent or less of your income? You can do this by cutting a portion of your spending on less important things, such as buying overpriced meals in convenient stores when you get hungry in the middle of the night. To save more and build a fortune out of your small income, why not buy snacks in bulk in grocery stores or look for cheaper and healthier ways to satisfy your cravings and hunger? The point is, to avoid splurging on things you don’t need. If you do your best to live simply and below your means, you are building a fortune in a stress-free way.

5. Pay Your Debts on Time

Credit cards allow you to spend money you don’t have. While using credit cards can be very convenient, especially for emergencies and other important expenses, you can bury yourself in debt if you’re not careful. If you are in deep debt, you’ll never get rich.

The lesson: avoid using credit cards for emergencies anything you cannot already pay for in cash. Pay all your bills on time to avoid accumulating interest and drowning yourself in consumer debt. Do not be fooled by “buy now, pay later” promos. The longer you pay for something you owe, the farther you are from achieving financial freedom. Better yet, weigh the pros and cons of credit cards before getting one.

6. Get Rid of Unnecessary Stuff

Aside from cutting back on your expenses, you can save more and build wealth by getting rid of unnecessary things you already own. The fewer things you own, the less you need to spend to maintain them. Check the appliances you have at home. Are there things that are just sitting there you haven’t used for a year or more? If so, why not sell them and add the money to your savings and investments? You can also lower your electricity bill by doing so and making your home more spacious.

7. Invest in Yourself

Another way you can get rich is by investing in yourself. You can get financial education or seek the help of a professional financial company that will help you understand how to manage your finances wisely and achieve your long-term financial goals such as building wealth, even on a modest income.

Another way you can invest in yourself is by studying and learning new things and skills that you can use to get freelance work or start your own business. These skills will not only help you earn more money, but it will also boost your self-confidence and overall sense of self-worth.

8. Have Multiple Streams of Income

It has been predicted that the 2020 inflation rate in the United States will average at 1.9%. With consistent inflation, holding one regular job may not be enough for you to build a fortune. To keep up with the cost of living and save up for your future, you might consider multiple streams of income.

Aside from taking a part-time job, why not think of business ideas you can start at home? These can include doing jobs that will help you earn passive income such as producing digital products like writing your own ebook, selling advertising on your blog or website, or producing videos on YouTube. If you’re knowledgeable about graphic design and digital art, why not take commissions and earn by practicing your talent? Really, you just have to think of how you can earn from the skills and interests you already have.

9. Surround Yourself with People Who Have Similar Financial Goals

People who share your financial goals will understand the financial decisions you will make. They won’t laugh at you or scold you for cutting back on your expenses or adapting to a simpler lifestyle. They will share with you tips on how you can stick to your goal of building wealth without depriving yourself too much. On the other hand, they can also learn from your experiences and sound advice in securing a solid financial future. Good friends from your financial goals support system.

If you are planning to build wealth, do not wait for the perfect time to make this a reality; the perfect time may never come. Rather, act now and apply these nine tips so that you can build a fortune with what you have right now.

About the Author

Rick Munster

Rick Munster

Rick Munster is a personal finance expert and author with over 21 years of experience in the credit counseling industry. He currently serves on the board of directors for the Financial Counseling Association of America and has written over 200 articles on personal finance. Rick's expertise has been recognized by several prominent online organizations, which have quoted him on issues related to credit counseling, debt management, and financial education. With more than 20 years of experience at Money Fit, a non-profit credit counseling organization, Rick has established himself as a trusted authority in the field of personal finance.
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Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

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NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).