Sunday, May 6, 2012

Saving vs. Spending (this might surprise you)

This quote is from Money, Possessions and Eternity by Randy Alcorn. I hope I always remember this lesson!

Practical Guidelines to Control Spending.


"Understand the difference between spending money and saving money. 



Saving money is setting aside money for a future purpose. Money that is saved stays in your wallet or the bank and can be used for other purposes, including your needs or the needs of others that arise.  On the other hand, money that is spent leaves your hands and is no longer at your disposal.  Hence, when you buy a fifty-five dollar sweater for thrifty-five dollars, you do not save twenty dollars - you spend thirty-five dollars.  Whether the sweater was worth thirty-five, fifty-five or two hundred dollars is irrelevant.  The point is, the thrifty-five dollars is gone, and you have saved nothing.  The next time you hear of a great sale on something you don't need, remember- if you keep 'saving' like this you will soon be broke!"

12 comments:

  1. Good point, we always think a sale is something we should involve ourselves in for the "savings." "A penny saved is a penny earned" said B. Franklin

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    1. Our generation does not value a penny.. do you think? I'm trying to find value in saving small amounts towards larger goals.

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  2. What he says is very true. Nonetheless I still prefer to spend less when something is on sale. Overall it makes a big difference.

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    1. Absolutely! I think the point he is trying to make is the difference between the TERMS used.

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  3. The thirty five dollar sweater will never be worth thirty five dollars again, after it leaves the store the value drops dramatically.
    I have been getting items ready for a garage sale and realizing all of the money that we have spent over the years. It is amazing how many things we have that were bought for hundreds of dollars in the past, that we would now be lucky to get five dollars for in a garage sale.
    Thankyou for your wise words.
    Blessings to you NEll

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  4. Oh yes, and do you need it even though it is a bargain! You can't bank bargains!

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    1. Yep! I'm on a 'no spend kick' to save for some dental work. Great motivator! :-)

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  5. Just wanted to say this is excellent advice".thanks..

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    1. You are on my heart today Dolores and I've prayed for you.

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  6. Guess I can't use that one on my husband anymore :) He always reminds me, "You wouldn't have bought it at 50, so you COULD have saved 50."

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  7. This is very good. My Dad use to say this same thing to us when I was growing up.
    God Bless,
    Sharon

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