See a penny, pick it up!

It amazes me that there are people who would be embarrassed to pick up a penny if they saw one on the ground, yet if it were a greenback they wouldn’t hesitate.  I’m not one of those people.  In fact, I love “found money”, it’s a form of extra income.  Pennies add up to nickels, nickels add up to dimes, dimes add up to quarters and on and on.  Before you know it, you’ve got a dollar.  It may not be a paper dollar, but a dollar is a dollar, no matter the form.

Just today I picked up 3 dimes and a penny.  That’s 31 cents I didn’t have when I got up this morning.  Let’s say that on average I pick up $1 per week and I throw that change in a jar.  After 3 months I would have $12.

I then deposit that $12 into a savings account.  I deposit an additional $12 every 3 months.  Currently my savings account is earning a paltry .80%.  The compounding would look like this over a five year period:

Starting amount				$12.00
Years				5 years.
Additional contributions				$12.00 per quarter
Rate of return				0.80% compounded annually
Total amount you will have contributed				$252.00
Total interest				$6
Total at end of investment				$257.57
Year	Additions	Interest		Balance
Start	$12			$12
1	$48.00	$0.34		$60.34
2	$48.00	$0.72		$109.06
3	$48.00	$1.11		$158.17
4	$48.00	$1.50		$207.67
5	$48.00	$1.90		$257.57

 

As you can see, I would have accumulated $257.57 after 5 years.  All for picking up $1 worth of loose change that I saw lying on the ground.  Free money!  Who doesn’t love free money? 

To all those people who will only pick up paper money I say thank you for leaving more for me!