Money Lesson Number #129: You Can never save money by spending money!
Don’t let the Geico ad with that cute little talking and dancing gecko lizard fool you–the only truth about that commercial is that every fifteen minutes, you and millions of people are just adding more money to Warren Buffet’s already $70-plus billion; he owns the Geico Insurance Company.
Always remember this: if you are spending any money, you are not saving, no matter how good the deal is, even if it is on sale for 99.99% sale off.
You did not save money if you bought it, you spent money (more often than not wasting money on junk that you will not need in a month), your money is going from your pocket to someone else’s pocket and, usually it is a billionaire or a multi-billion dollar company.
The only time you save money is when your hard-earned money stays in your pocket, whether it just sits at your home, in your checking account or in a portfolio that you own.
Learn the little tricks that corporations use to get your money. Every time you see any kind of ad, such as TV commercials, printed ads, a sponsor page on your Smartphone via Facebook or Google, they have one goal in mind; to take your money from you forever!
The old saying is true: “A fool and his money are soon parted,” or even worse, “A fool and his money are soon partying.” But there is even a much better saying: “A Penny Saved is a Penny Earned.”
My favorite stratagem is to pay yourself first. Each time money comes into your hand, save/invest twenty percent (20%) and spend the other eighty percent (80%).
I know at times you must buy goods and services, but what you should know is that each time you spend money, it is going to make a large multinational corporation or someone wealthier and you poorer
Most people have been duped into spending money. All ads no matter how simple or sophisticated are designed to wire your brain to make you give up your money to someone else. It is not easy, but you have to rewire your brain to know when you are getting duped.
A good way to start is with your children by letting them know that most TV and other commercial advertising are not 100% true. Our seven-year-old now always asks us each time he sees a TV ad, “Is it true?” and rarely are any of them true!
But, you can also always ask yourself by saying, “Can I go one day without it?” and the next day, ask the same question and most of the time, you will keep you hard earn money. The products or services are often things that you can live comfortably without.
Here is a quote from one of the first book ever written about money that will never change, “The Richest Man in Babylon“; Ten percent of what you earn is yours to keep.”
“Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like”. –Will Rogers
Thank you for reading, please share my blogs and books with someone you love.