What does saving mean to you?

I am sure that we have forgotten what the word ‘saving’ means.

The Macquarie dictionary defines the word ‘save’ as –
“to avoid the spending, using up or waste of’’ and ‘saving’(plural) as “sums of money saved and put aside”.

So, if that is the case – then why do we hear people say “I bought such-and-such for X amount of dollars and saved X amount of money’’. Now forgive if I’m wrong, but (to my mind) that is not saving. That is actually spending. I suppose it might not be spending as much as you could have – but it is still spending!

From what I understand from the definition of the word, the only way you could actually save money in this instance would be to put the amount that you have supposedly ‘saved’ into a bank account. Now that would be saving! But does anybody ever do this?

So then I need to ask this question – “How can you save money by spending money?” To me it does not make any sense at all!

Perhaps people are getting confused with the old adage – “you have to spend money to make money”. That is a common term used in business and I am not going to delve into the whys’ and wherefores’ of that right now. (You actually have to have the money to spend before you spend it, but that is another article for another time)

Buying stuff to store in a cupboard is certainly not making money. But what about antiques and collectibles you ask? Good question! Go and look at the stuff you bought.  Is it going to appreciate in value in your lifetime? Is it a rare and valuable piece that is hard to find?

If not, then your argument is not as strong as the advertising that sucked you in to believing that by spending money on a purchase, you will actually save money.

Take a walk through any shopping centre and count the ‘savings’ signs. They are everywhere and it is so tempting to think that we just might purchase something for less than full price. But it is not saving money.

The only signs that have a real ‘savings message’ are the ones outside the bank that say – “open a savings account today”.

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

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