Jonesy's Journey: The True Cost of Spending

By Mark Jones

“A penny saved is a penny earned.” - Benjamin Franklin

I had a conversation at the gym today with someone who was trying to decide between two trucks. The difference in price was about $3,000, and he was going back and forth on whether the upgrade was worth it.

 I mentioned that it’s not really just a $3,000 decision.

He looked at me and said, “What do you mean?”

I shared, “It is often easier to save money than make money.”
 
If you save $3,000, you keep the entire $3,000. But if you spend an extra $3,000, you don’t just need $3,000 ... you need to earn it first. And after federal taxes, state taxes, Social Security and Medicare, that $3,000 likely requires closer to $4,400 in income.
 
That can change how we look at things.
 
Financial progress isn’t just about what we earn, but it’s also about what we keep. Over time, people who are a bit more thoughtful and disciplined with their spending often end up in a stronger position than those who earn more but let more slip through their fingers.
 
Nothing complicated here, just something worth keeping in mind the next time a decision seems like “small money,” as I’ve heard others share in the past when faced with a spending decision. Maybe by today’s math Franklin’s quote would be something like “$1 saved is $1.45 earned.”
 
Happy spending ... or saving.
 
 (Today’s pic ... not really sure where I shot this ... somewhere along my travels.)