Working a job where you make tips is one of the most satisfying thing I have ever experienced. Even if it’s just a few cents or a dollar every purchase, it quickly adds up. When I first started making tips as a barista, I would always ignore the change at the bottom of the jar unless it evened out to a full dollar. This small daily habit could have ended up making me lose out on a considerable amount of money if I hadn’t noticed.
Below I have a chart showing how much money you could save in a year just by grabbing the leftover change at the bottom of the jar.
|Days/week||Cents||Total in a Year|
Although this may not seem like a lot of money compared to how much you make in dollars, you have to calculate the marginal cost/benefit. Marginal cost is how much it burdens you to do something. Marginal cost can include money, time, and stress. In this case, the marginal cost is small, because it’s money you have already earned. One inconvenience is getting the change into your bank account or into a more liquid form. But this can easily solved with Coinstar, or finding a bank with a coin machine. Just get a large jar in your house to keep your change in and convert it to cash once a year. The marginal benefit can be substantial, depending on the number of days you work.
Here’s the formula you can use to calculate how much you could earn:
Tips in a year=(Days working)*(52)*(Average change)
Do you grab the change in your tip jar? How much could you earn?