Squirrels are known for their habit of hiding nuts for use later. This process means that there are little bits of food scattered about in safe places for the squirrel when it needs it. This concept when applied to money means that you don’t have to necessarily have a specific purpose for funds like a true savings account. Squirreling means you have small amounts of money stashed in various places such as savings accounts, jars, drawers, etc.

Where, and how much you squirrel will depend on you. Some banks have accounts where every time you make an electronic transaction an amount of money that you pre-determine, will be automatically deposited into a savings account. It’s amazing how quickly $1 per transaction will add up when you leave it for a while. The same thing works with keeping a small amount of cash (not just loose change) in a jar in your bedroom or office, or car. You have to be strategic with creating your stash, however, squirreling isn’t the same as allocating a specific purpose to a specific denomination of coin or bill; nor is squirreling the same as a giant jar of loose change sitting on your counter collecting dust. Squirreling means you have consciously stashed small amounts of money for no particular purpose, other than the knowledge that some day you might need or want it.