tip #10: the theory of fives

So, if you live in a big city, you might be unaccustomed to having modern appliances such as a dishwasher, washer/dryer, and garbage disposal in your home. I know I am. A long time ago, I taught myself to put all the quarters I get as change into a separate pocket than the dimes/nickels/pennies, because I always need them to do laundry. And laundry is a pain in the ass enough to lug down the hill and sit around watching it to think about also going to the bank for quarters. So now, automatically, every time I get change back, change goes in the wallet, quarters go into the side pocket. I clean out the side pocket every night and put them in a jar in my bedroom.

A while back, a girl friend and I were talking about budgeting and she told me about something called The Theory of Five. Full disclosure requires me to tell you that I remember absolutely nothing about The Theory of Five, so I just made up my own, and it's my very favourite of my money tips.

well hello, Mr. Lincoln!

Each night when I pull the quarters out of my bag, I also flip through my wallet. If there are any five-dollar bills in there, I put them in a jar in the pantry. Sometimes there is, sometimes there isn't. But I don't miss $5 really, and now at any given time I have between $20-$35 in the jar in the kitchen. I used to use it solely as my emergency take-out fund when I was working, because let's be honest, sometimes you work all day and just can't be bothered to cook. But now that I'm unemployed I use it for all kinds of things: a night out at the movies, to buy a bottle of wine to take to someone who's invited me over for dinner, last week I even used it for Christmas postage.

I don't do well with complete deprivation so it's nice for me to have a little fun cushion nearby.

Hope everyone had a wonderful Christmas. I was "good" over the weekend: Friday night, $20, Saturday AM, $26 for brunch and $5 on my BART card to get to San Leandro, and spent NOTHING on Sunday or Monday. But today I'm going to the movies.

Start saving your fives so you can buy me a drink next time I see you. :)