“A penny saved is a penny earned.” – Benjamin Franklin
It is true that a penny does not seem like much with our economy these days. Inflation has risen making it so that a dollar does not get us as much stuff anymore and it seems that many people are making less money. A big issue that many people have is spending more money than they have in their bank account or in cash. Today I am going to start explaining to you the importance of saving and how some day it can make you RICH.
The quote earlier from Benjamin Franklin expressed that saving money is basically the same thing as earning money. Here is a scenario. Let us say that Bob just got paid. He has $375 in his wallet and is looking to buy something nice. The same day that he gets his paycheck, he takes a girl out to a fancy restaurant. He buys a $35 bottle of wine and the total check after dinner and dessert comes out to $100.
The next day he buys a new video game console with a couple of the latest games. The total comes out to $290. This means that Bob is spending more than he earned at a total of $390. He had to put $15 on his credit card. Bob is now completely broke and even in debt because of the purchases he made. Now in Bob’s current position, does he FEEL like he earned $375? Probably not but what if he would have saved that money?
Every Penny Adds Up
Today it may be more appropriate and easier to understand that every DOLLAR adds up. Spending 2 or 3 dollars here and there is looked at as harmless by most people. After all, that tiny amount is not going to be able to buy anything that is really that useful. I can agree with this statement if we are talking about the present moment that is right here and now. However, consider this over the course of TIME.
I have decided that I am going to spend $2 per day on vending machine snacks while I am at school. I go to school 5 days a week which means that is $10 a week on snacks. I go to school 32 weeks out of the year so just on snacks, I am spending $320! That is almost enough to cover my rent for a month in just that price for snacks in one year. I might as well create an expense account in my budget for snacks.
Money Goes Quicker Than You Think
It is frustrating at times to feel like living paycheck to paycheck is the only possible way to survive. One day there is over $1,000 dollars sitting pretty in our bank account and then our BILLS get taken out of it the next day to show only about $100 left to our name. Many people fail to really see the ACTUAL amount of money that they have to their name.
Right here and now you may have $1000 but what about next week when you have to make a down payment on a new car because your old one breaks down? The ACTUAL amount of money that someone has is their INCOME – EXPENSES. John makes $1,200 a month with expenses of $1,000. In order to not overspend, John should realize he actually has $200 for himself (Income-Expenses).
Big Amounts Can Go Just as Fast as Little Amounts
People are always looking to find that “right” income that solves all of their problems. Here is my opinion of that fantasy-driven idea. As someone makes more money, they have access to more expensive things. In our society, many of the more expensive things are more desirable to own. These items can include a boat, a nice house, a nice car etc.
When you make a small amount of money, these high ticket items remain a dream with no money going toward them. There have been criminals that have literally stolen BILLIONS of dollars from people just to spend every bit of the money. $60,000 and $6,000 can be gone in the same amount of TIME. It just depends on the product being sold. The point is that there is NO amount of money that will ever fix ALL of your problems or allow you to have everything you want. There is more stuff than money in this world so even all the money combined cannot buy everything.
Conclusion of Part One
During this first part, I have attempted to instill a more ACCURATE picture of money. We must first adjust our spending and saving habits by understanding money with a certain MINDSET. The first step to developing this mindset is learning some fundamental things about money. Give these points some TIME to SINK IN and I will be back next week with a post that explains how to become rich.
If you have any INPUT for the perception of money, leave us a comment so that we can thank you for your ideas. Everybody has a voice and everybody has good things to say. Do not be quiet anymore and start showing people your true potential. We are excited to hear from you. If you liked this post you can click HERE to read part 2.
“We are the Young Life Perception”