It’s like Finding Free Money!

pennies-15402_1280-PDIf you have ever found a $1 bill on the ground, you sometimes feel like you just scammed the entire world.  Free Money!  It’s not like you just saw someone drop it, but you see a dollar bill and no one is around.  Somehow, that measly $1 is very enjoyable feeling.  Even a quarter, when there are also a few other coins around, feels great.

I found a bit of money this week, when I was reconciling my bank statement.  I am sure you all reconcile your statement too, and not just rely on the bank to keep track for you.

The first $925 I found was a deposit I made for rent, and forgot to log in Quicken.  It’s always a great feeling to find a missed deposit and not a check.  Free money!

I then found another deposit I missed.  Normally, I am on spot when it comes to the deposits.  Online purchases I sometimes get sloppy on.  I received a $320 payment in a direct deposit from a customer paying an invoice.  I never get a notice for these direct deposits, so it’s just whether or not I happen to see it and log it.  Free money!

So, I was looking great, there was $1,245 that I had but never knew it.  I then found a couple of checks I wrote, which lowered the amount by ~$50, so that dampened the mood, just a bit.

And lastly, my last renter that still owed April rent put a check in the box on the 4th and I picked it up this AM.  There was never a doubt, but I like it when I am 100% collected.  So, I have 100% of my rents collected by the 5th of the month.  25 for 25 rents collected.  I challenge any property manager or landlord, to have a better batting average.  Getting all of your rents in a timely manner is easy.  It’s all about tenant quality.

 Technically rent is late on the second of the month.  I have a late fee clause in the leases that goes into effect on the 5th.  Knowing the time value of money, if I was a renter I would always pay on the fifth, but I would have automatic payments set up so I would never miss a payment.

Even as a homeowner, I don’t pay my mortgage until the fifth; I can appreciate a tenant that does that.  Even though I prefer to receive the rent on the first.  I do get a few prior to the first, so it evens out.

And another note.  For those of you, who do not pick up pennies when you see them on the ground, thank you! I pick them up, always.  You might say is it not worth your time.  What other task were you doing that by interrupting it for five seconds to pick up the penny, you lost money?  Were you going to make $7.20 an hour somewhere else for those five seconds?  And if it only took two and a half seconds, that’s $14.40.  Of course, if it was a piece of gum, or trash, you got suckered.

Do you stop and pick up pennies?  Do you reconcile your check book on a regular basis? Have you received all of your April rent yet?  If you are a tenant, hopefully you have paid yours by now…

9 Replies to “It’s like Finding Free Money!”

  1. They’ve stopped penny circulation in Canada so we don’t see them much anymore. I’ve got a piggy bank here I need to get rolled and take to the bank though. I used credit for most everything now anyways and rarely have cash in my wallet.

  2. I’m 1/1 on rent collection! Haha it’s not that difficult when you only have one renter, but I suppose if they didn’t pay one month we’d be out 100% on rental income. I really enjoyed this -> “What other task were you doing that by interrupting it for five seconds to pick up the penny, you lost money? Were you going to make $7.20 an hour somewhere else for those five seconds? And if it only took two and a half seconds, that’s $14.40. ”
    This rationale can be used for many things that people say “aren’t worth the time.”

  3. I really need to get on top of creating some passive streams of income. I can’t say I’ve ever just “accidentally” come across money in that fashion. I have found money out on the street before but I feel guilty taking it. (Unless it’s only change of course)

    1. Thank you for the comment!

      Finding money while balancing a checkbook isn’t really finding extra money, but it is a nice feeling. I do know people that do not pick up pennies on the ground. Saying it isn’t worth their time, but yet they are broke…

      And I nearly always find coins when I clean out a rental. Not a lot, but typically five to 10 coins, maybe fifty cents or so. I always pick them up. I hauled away a couch once, charged $35 to do it, and found another $2+ in the couch.

  4. Great blog (first time reader).
    I think if you pay your mortgage earlier in the month vs. later (or the 15th), your remaining interest will be lower and the portion of your payment goes to the principal will be higher from them on..right?

    1. thank you for the comment. It really does not matter when you pay your mortgage, the banks have a set amortisation schedule that you need to pay. The way to reduce your interest payments is paying by every two weeks, which gives you an extra payment per year.

  5. Sorry, but I have to disagree about the pennies. I’m actually the one who tosses them on the ground for you. I do manage my finances pretty carefully, but saving pennies just isn’t worth my time. Worst case I probably throw away 10-12 of them a week, and the $5 or $6 dollars a year I could be saving simply isn’t worth the bother to me. I’m happy to keep the sidewalk stocked for you though. 🙂

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