Dec 7th, 2007
Ask the readers: When do you save by spending?
I’ve never been sure if this was proper use of the word, but I object to advertisers telling people that you’ll save money if you buy something. “Buy today, save 75%!” I don’t really think that’s actually saving.
A coworker of mine once perused Amazon and saw a watch that was on special. “Look! If I buy it today, I save 75%!”
“Well, do you need a watch?”
“No.”
“Do you have someone in mind to give it to as a gift?”
“No.”
“Would you resell it somewhere for a profit?”
“No.”
“Then guess what… save 100% by… not buying it!”
I’m not sure if she understood that or not, but I think that’s as eloquently as I can make the point. A sale, discount, special, or whatever may help you spend less money; it doesn’t actually help you save money. Saving money means putting it somewhere you won’t spend it where it will hopefully earn a few bucks worth of interest or dividends or capital gains. Yes, there are many, many times when some kind of sale can be a huge financial help, especially if it’s an item you’re going to need anyway–a Costco coupon for toilet paper is immensely helpful–but there may be times when you’re tempted to buy something you don’t need (and maybe don’t actually want!) just because it’s “too good of a deal to pass up.”
Saving money doesn’t involve spending it; rather the opposite. It involves finding ways to not spend money, especially on items that you either don’t need or can do without by substituting something that costs less; it involves discipline and learning to do without instant gratification. It’s not easy, and often requires remembering your goals and long term wishes. Many times I don’t live up to my own expectations in this area, but I try to think long term and figure out creative ways to meet my needs without spending more money than I need to.
Are there times you actually save by spending? Am I missing something here? Please let me know!
What a great point! I try not to fall into this trap, too, but I don’t always succeed.
Thanks for reminding me not to get sucked into the marketing machine’s evil ploys.
You’re welcome, Donna. The truth is there are times I do buy stuff just because it’s a great deal, but I try to limit those seriously. The last “great deal” thing I bought was an iPod touch, but I justified it to myself because I had my Sony Clie die and I could seriously use a replacement.
The thing with people like that is they see the ’save 75%” part but they forget they have to SPEND the 25%.
I used to be like that until I started my blog and started reading other PF blogs to see what I was really doing.