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Spending Isn’t Saving – Don’t Fall Into This Money Trap

money savings.jpgYou’re bombarded with this message all day, every day. “SAVE BIG MONEY!!” or “SUPER SAVINGS”, usually accompanied with the empty threat that this will never be repeated again in your lifetime. The goal of this mental artillery is to convince you that by spending money, you’re actually saving it. That’s akin to saying that by killing someone, you’re really saving their life. 

Let’s get one thing straight right up front. Saving money and spending money are opposite sides of the same coin. One is your money flowing out to someone else in exchange for goods or services. The other is your money staying at home, in one of your accounts, or being converted to an investment vehicle.

The trap is letting yourself be convinced that by spending money, you’re actually saving it. You’re not. Unless you’re buying something you needed to purchase anyway, you’re just wasting your money. It just requires a shift in perception. Spending is spending and saving is contributing to an actual monetary fund, hopefully yours. Saving is not spending, just spending less.

So, the next time you hear those ads come flying out of your speakers, or see them jumping off the page while you’re reading the newspaper, don’t fall for it. Your finances will thank you for it. Spending isn’t saving.

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Comments

Heh, my dad used to use this logic on my mom all the time, when she'd come home with something and say, "I saved twenty dollars on this!" He'd just ask her for the twenty dollars.

my wife is a firm believer in this one......20% off think of the money I just saved by spending 80 instead of 100

The trap is letting yourself be convinced that by spending money, you’re actually saving it. You’re not. Unless you’re buying something you needed to purchase anyway, you’re just wasting your money. It just requires a shift in perception. Spending is spending and saving is contributing to an actual monetary fund, hopefully yours. Saving is not spending, just spending less.

Spending and saving are polar opposites. It is the trickery of advertising and markerting ploys that make consumers believe they are actually saving a few dollars when they spend $50.

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