7 reasons Why Saving Money Makes You Poor: Reason #6
How far would you drive to save 10 cents per gallon on gas? Some people will drive far away. Some people don’t pay any attention to how much gas costs and fill up wherever is convenient. But how much time does it take to get to that cheaper station?
So what’s the point? The point is that when we focus on saving money, we ignore the real costs. Because money is only one measure of value. We have other things that are far more valuable than money. These are time and effort.
Reason #6: Saving Ignores the Actual Costs
It’s very easy to spend a lot of time, energy and effort trying to save a small amount of money. For example, driving an extra 30 minutes to save money on gas gives us a very low return on our time and effort. Another example is people who spend two or three hours each day commuting to work. Besides costing money and gas, they have extended their working day by 20% or 30%. This in turn, robs them of time and energy that they could spend doing something productive.
On the flip side, there are things that people spend money on that consume all their time. The most popular is television. The person might say, well, I only paid $300 for the TV set. But actually, if you consider what the person could have done with the time that they spend watching, the cost is far greater. They could have built a business, become an investor, or gotten rich in any number of ways. They could have built the most popular blog on the Internet. The possibilities are endless.
So, what if we consider how much value we are actually getting when we save a few dollars? Perhaps we could ask, “Is it really worth spending the time and effort to keep this money?”
Related posts:
- 7 reasons Why Saving Money Makes You Poor: Reason #5
- 7 Reasons Why Saving Money Makes You Poor: Reason #3
- 7 Reasons Why Saving Money Makes You Poor: Reason #1
- 7 reasons Why Saving Money Makes You Poor: Reason #7
- 7 Reasons Why Saving Money Makes You Poor: Reason #4
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is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
I strongly believe one key component of saving money and an important way to prepare for future needs is to invest…Investing is nothing but seizing opportunities to increase our wealth.
I think most people would agree that saving money is something “easier said than done”. Personally, I believe it’s a mind-set that needs to be developed by creating good money-saving habits.
Here are some things I’ve done to help change my spending habits:
– Cook more at home ( Eating out is very expensive especially
if you do it a couple times a week
– Try shopping online ( You can find better deals than in the
store and you save on gas (I recommend HYPERLINK
“http://www.shoptivity.com” http://www.shoptivity.com)
– Pay the full balance on credit cards each month ( Interest
charge is like giving away free money
– Don’t forget to pay yourself ( Set up an online savings
account (they pay higher interest than a normal savings
account)
– Set a budget and goals ( It’s good to have your goals
written down so you see them everyday and don’t lose focus
on your ultimate objectives
Again, saving money requires a lot of patience and hard work. However, you’ll thank yourself later on in life. Good luck everyone!! =)