The word is getting out that my new hobby is saving money, I can’t tell you how many times recently I hear an proud friend say, “I can’t believe how much money I just saved!” right after a shopping trip. But in my head I wonder if they really got a deal or just think they did.
Question: What does it mean to SAVE money?
There are many definitions of the word. Here are three that are often confused with each other.
According to Merriam-Webster save means “To put aside as a store or reserve, accumulate.” So, you save money when you put it in the bank, retirement account, or tuck it away for a rainy day. One way to save money is to actually not spend it.
Save also means: “to spend less.” I hear this one the most. People buy something that had a sale tag on it and get excited about how much they saved from the purchase. So a second way to save money is to buy something that you were ALREADY going to purchase at a lesser amount. This does NOT work when you see something that is a great deal, and purchase it even though you don’t need it. I’m sorry to say, if you spend money on something you did not intend to purchase, you did NOT save any money.
An even better spin on this second definition would to put the sale portion of the purchase in in the bank or add it to other debt payments.
A third meaning of the word save is “to make unnecessary, avoid.” This one can take a little will power or creative thinking. Imagine paying your bills on tile and avoiding late fees. Or avoiding going to the mall when you are bored, ignoring the mesmerizing commercials vying for your wallet. Disconnect the cable to save money. Or replace the habit of buying holiday gifts with creative, homemade and personal treasures to give.
Take a look at your purchases and truly ask yourself “do I NEED this?” And if the answer is still yes ask yourself another question “do I need THIS?” Maybe there is another way to have a similar model (borrow it, ebay, resale). By eliminating or reducing a necessary purchase you can save money.
Every little bit of money you can steer toward your goal will get you there faster. Keep saving!
