How to Use Found Money to Jump Start a Savings Plan

Short of cash and no savings account? You're not alone. According to the
2010 MetLife Study of the American Dream (read it at www.metlife.com), 59% of Americans are living from paycheck to paycheck.

Living from paycheck to paycheck is not a very good financial strategy. Ideally you should have at least 3-6 months of money reserves to cover expenses during a layoff, medical leave, or if taking time off for a family crisis.

For those of us who aren't very good at saving money, one easy way to jump start a savings account is by searching for loose change to start the ball rolling. Here's the top 10 places to look for loose change.

1. Under the sofa and seat cushions.. Don't just stop beneath the cushions, run your hands down behind the springs as well to find spare cash.

2. In the pockets of blazers, jackets and coats. Whereas women tend to throw their loose change in their purses, guys seem to use pockets instead. Be sure to check 'em all, including your winter gear.

3. In the washing machine. As a Mom, I can attest that my washing machine must have an automatic coin dispenser since it spits out several coins with every load.

4. Buried in a junk drawer along with all the other stuff that guys (and gals) empty out of their pockets.

5. Out in the car under and behind the seats, especially the rear seat.

6. Beneath benches at the mall. This tip comes from my teen daughter who claims she usually finds enough money to buy a smoothie.

7. Grocery store parking lots. Where there are cars and shopping opportunities, there's loose change to be found. I find at least a dollar every time I cross the parking lot of my neighborhood grocery store.

8. Vending machines and arcade change slots are also a great place to turn up a few coins. The real jackpots are at the mall and mega plexes.

9. Floor of the school cafeteria or other self service cafeteria. Do wait until the diners leave before scrambling under the table for that loose change.

10. Everywhere you walk. Every time you walk through the park, jog down the street, go to the beach, or do any one of a million other things, keep your eyes to the ground for loose change. Read AC contributor G. Gadfly A Scientific Approach to Finding Loose Change to learn how it's done.

So now what?.

The coins you find should go into a jar until there's enough to open a savings account. And once you've got that going, build on those savings by adding to it with other "found" money. Rebate checks, refunds, jury pay, gift money, cash found through Missingmoney.com, and tax refunds should all be diverted to this savings account as well. In no time at all, those coins and odd bits of found cash will turn into a sizable nest egg.

More by this contributor:
How to build up wealth through frugal living.
How to save money and budget when you're a teen.
How to build up a savings account in a tough economy.