A Penny Saved is a Penny Earned
Savings. So simple. So important. Yet today this is something that is almost totally ignored.Years ago, people made very little money compared to today. Often work was very hard to find. Even so, people still saved.This was very important because to buy almost anything, they had to pay full price, not just make a down payment and pay so much a month.As years went by it got easier to find work and people made more money.Then a wonderful thing happened. It was possible to buy anything with a small down-payment so it didn't seem important to save anymore.There was no need to wait until we saved enought to buy something, we can just buy now, and pay later.In life or in business the penny that you can make is easy to work with. You can spend, invest it or save it. The penny you might make isn't so easy to work with.Many have gone from a penny saved to a penny spent, then borrowed and spent again. They want something and they want it NOW.The government spends more than their income. No matter how large the income, they spend more.Companies large and small have learned how to spend. This allows, or causes them, to make bad business decisions.Citigroup, one of the large financial businesses lost over 40 billion dollars in the last few months. It doesn't seem possible that any company would lose that much and not be aware of it, but the news is just coming out. Earlier, they thouught the loss would be near three or four billion dollars.This loss is from spending and hoping to make it back.General Motors' loss in the last quarter is over three billion dollars, yet they say "they are headed in the right direction."Today we have a wonderful economy. Our worst is better than the best was 100 years ago, yet almost everything we hear is tellling us how difficult it is.There are lots of jobs for anyone who wants to work.People make a lot of money but it still isn't enough.We have learned how to spend and we have gotten very good at it. We have just forgotten about saving.When we spend first, almost everything will cost us more by the time it is paid for.When we save, then buy, it will cost less as there will be no interest charge.It will be ours, No ours and the finance company, just ours.When we save to buy something, by the time the money is saved it might not be that important to us to buuy the item. It might just be nice to keep the money we saved.Saving is kind of like spending, it gets to be a habit and lots of fun. To see a bank balance grow is more fun than worrying about how to make the next payment.Remember, make money first then spend only what is needed and save the rest.Only buy on time things that will make their payments.Life is so good and easy now if we will just learn how to save again.Save, then you can smile and mean it!
Reprinted from Stockman Grassfarmer July 2008 issue. www.stockmangrassfarmer.com