Is a penny saved really a penny earned?
But most of you will disagree as you think that pennies can never make big money.
You are in for a surprise then.
You earn a lot and spend a lot. You put off saving money as you feel you have lots of important financial commitments to be met. Month after month passes with no savings in your kitty.
You never realize that slowly but steadily your financial security is being eroded because of your unsaved pennies.
‘My budget for the shopping was hundred dollars. You know what? I finished my shopping within ninety dollars’ my daughter told me after returning home from her shopping.
‘Well, you have earned ten dollars then’ I told her.
‘How can you say so?’ she was bewildered by my answer.
‘Since you planned your shopping properly you have ten dollars in your kitty’ my answer made her laugh.
My daughter saved ten dollars as she did some sensible shopping. She controlled the money she had with her.
Are you confused?
A penny saved is a penny earned – Golden words
‘A penny saved is not a penny earned if at the end of the day you still own a quarter’- Mary Landrieu
When you spend beyond your budget you are throwing away your money. It implies that you do not know how to manage your money. It means you have not planned your financial dealings. It emphatically states that you are allowing money to control you.
But when you spend within your budget you are totally in control of your money. You know how much to spend. You know how much to save. You are master of the money you earn.
Are you confused?
Money literally drains through your purse\wallet due to your unthinking spending.
When the penny you earn is out of your hands, you have lost it.
But when you save the penny, it becomes your earnings because you have it with you.
The literal meaning to this beautiful proverb is ‘spend money wisely. Save money cleverly.’
What is the use of earning thousands of dollars when you do not know how to spend it?
Life is so uncertain!
You might lose your job because of the recession and financial bankruptcy many countries are facing today. If you do not save money for such emergencies you will be knocked down by the deprived financial situation you put yourself in.
Are you venturing out for shopping?
You buy whatever catches your fancy!
But you know that most of the things you bought were not a necessity but a momentary lapse of control on your part. When you return home and count the balance from your salary your face turns ashen. You have spent beyond your means. So you have to eat out of your hands before the next month salary.
The earnings of today’s youngsters are something which was not possible a few years back.
You earn so much, but you are always in paucity of money.
Why is it so?
Since you earn a lot it gives you an aura of richness! You want to maintain a good lifestyle. You crave for the best things the world market has to offer.
You want to show your affluence to others. So you spend beyond your income!
Sadly in the bargain you never know the importance of saving money. Remember each and every penny you do not spend is each and every penny in your hand.
‘Does that mean I should not spend money? What is the use of me earning thousands of dollars when I cannot buy anything I like? I might as well not earn at all’.
‘I earn thousands of dollars. So I have the right to spend the money as I want. People judge me by the things I possess. So I must get the best’
This is your modern mentality in dealing with the money you earn.
So you spend recklessly without saving for a rainy day.
A rainy day comes in everyone’s life!
What happens to your life when you do not have any balance in your account?
- Your day-to-day life is a torture.
- You lose your self-esteem.
- You struggle to meet both ends meet.
Let us suppose you saved your pennies.
What is your financial status now?
- You are relaxed because of your savings.
- You are ready for any future emergency.
- You provide the best for your family.
The penny saved now becomes the penny you earned.
It is a simple mathematics!
I read about a funny incident in the newspaper and it somewhat amused me.
A villager in India won a big amount as a lottery prize. He was carried away by his lucky wealth. His lifestyle changed drastically and he always had a group of money leeching minions around him.
He did not plan the money that came to him by luck. He never knew the value of money as he did not earn it. He felt at the top of the world. The sudden richness blinded his commonsense. He literally threw his money around. He did not like the food in his village and would travel miles in a rented car for a breakfast.
How long do you think this sort of reckless spending would last?
Very soon he lost his money and now he is back to where he started – a daily wager.
Where did the daily wager go wrong?
He had the freak luck of winning a lottery prize.
But he spent money without saving his pennies for the future.
If he had saved money as much as he spent it, his plight would not have been pathetic.
- Take a piggy bank and put whatever left over money you have into it daily.
- Count the money after a month or so.
- You will be astonished by the sizable amount of money that had accumulated.
- The money you save is the money you have earned.
Money can disappear as fast as you earn it if you are not careful.
Anything can happen in your life. You might lose your job or you might have an increased expenditure in your family. If you do not have the back up money, you feel dizzy with confusion as to how to manage the money problems you face.
Be careful and save your pennies. Pennies become dollars and it is money you have earned.
A penny saved is indeed a penny earned!