I saw a very odd advertisement last week. It returned the phrase “Saving Money” back to what it actually means.
As a culture we are used to the ads that promise that we will save money. In reality spending money is the opposite of saving money. You can buy a sale item and the cashier will tell you that you saved $10 by shopping there. Ever use a club card at Safeway? At the end of the transaction they say “Thank you Mr. or Ms. whateveryournameis, you saved $7.59.” Not at all true; you’ve spent $75. 98 on stuff that should have cost you $50, and even if you had only spent $50 you still spent it, not saved it. They should tell you that your purchase was discounted by 10%.
Saving means to take the money and not only, not spend it, but to put it away so it won’t be saved. Put it in the bank or burry it out back. That is what saving is all about. If the money is in your pocket it isn’t being saved. That money is ready to go.
If the Save the Whales or Save the Rain Forest projects prevented the death of only 10% it would not be a saving at all. It would be a disaster. By thinking that you are saving on a sales price, you may be headed for economic disaster because.
So about the commercial I mentioned earlier. It talked about taking the money that you would spend one day each week and sticking it into a savings account. What a brilliant idea. Average your weekly spending and sock away one seventh of it.
It isn’t rocket science, but in a way it is. This generation isn’t on the whole, very good with saving. Most people are in thousands of dollars of credit card debt. They are living hand to mouth, pay check to pay check. They don’t save and further more they can’t save. If people could start small with 1/7 of their net pay going into savings, in seven years they will have saved one year in wages.
The children of the depression understood this, but their children and their grand children have no concept of saving. When the generation that saves are all gone, their savings will go to spenders. Our nation will be in dire straits economically when the nations that lend us money call in their chips.