Law 23 of Saving Money

This is a simple law of nature, but one which is very handy:

Saving means NOT SPENDING.

That’s it.

If you don’t save, you will never in your life have anything, because it all goes away.

Saving means NOT spending. If the proposed “savings” are spent, then they are no savings at all.

Of course, there is no value at all in savings all by itself. And so your mind will find urgent reasons why the proposed “savings” need to be spent. After all, your mind isn’t stupid. It will be obvious that a flashy sportscar is lots better than some money just sitting in a bank, doing no good for anybody.

Therefore use “Mental Judo”. From the beginning, your savings should be for a specific purpose. For example, save some to own a home. Save some as insurance that medical or unemployment emergency won’t make you a beggar. Save some for when you’re old, or just for when you’d like to stop working and concentrate on raising tulips and going fishing.

If you are saving for a particular thing, then your mind has a chance of perceiving that it is important, and you’d rather not jeopardize your grand plan for a moment’s flash in a sportscar. Later, when you’re rich, and the cost of sportscars is trivial, at that point you can actually afford a sportscar. Maybe two.

Saving means NOT spending. If you are truly saving, then you have the money in your possession. It has not vanished.

Knowing this important secret of the universe, go forth and prosper.