July 18th, 2008
It's only...
How many times have you heard - or said - something like, "Let's buy it! It's only fifty bucks. That's a twenty-five dollar savings!"Guess what. There is no "only" when you are dealing with your money. And, savings are only savings when you put them into your "bank".
If, instead of spending it, you put your fifty bucks in your "bank", it would compound to over $400.00 in 30 years at 7.2%. Add to that the 25 bucks you "saved" and you'd have over $600.00. Consider that you make those kinds of decisions frequently - say 12 times a year - and your compounded savings total is over $7,000.00. Do it every year for 30 years and you be a lot closer to fifty grand than fifty bucks.
"Only" fifty bucks? Don't kid yourself. The old adage "every penny counts" is an old adage because it's true. We all tend to trick ourselves when it comes to money, and one of the oldest tricks in the world is the "it's only". The next time you think you are saving money buying a product on sale, ask yourself if the product you are buying and the money you are "saving" is really worth it.
Remember - only money is money. For everything else, including your "investments", you have to spend your money. When you're closer to pushing up daises than doing fifty push-ups, having money instead of the stuff you bought on sale will be a blessing.
"You can be young without money but you can't be old without it." Tennessee Williams
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www.TheMoneyForLifeBook.com - www.YouBeTheBank.com
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Thanks for reminding us of the fundamentals Jeffrey. Spending money is so seductive - especially when you are working like a dog and feel like you "owe" yourself something to make you feel good. Or when there is not enough work and you want something to feel better about! I try and remind myself that delayed gratification is so much more rewarding.