Ever since being a child I have encountered the concept of “save for the future”. Then along came a concept called instant credit, specifically credit cards.
This was a counter-culture to the saving concept and encouraged spending. Spending money makes us “feel better”. And if we feel better, we spend even more. And if we use credit for the purchase we typically spend 30% more than if we used cash.
Now that banks are failing due to excessive lending, we see credit being tightened and a new lifestyle emerging. The concept of saving has returned.
And herein lays the trap. A day does not pass where I do not see articles on how to save money. A booklet just reached my desk and the lead article was “ideas for saving your family money”. But the approach was all wrong. Inside was nothing but ideas for spending money but a discount coupon was offered with each idea. That is not saving money. You are still being enticed to buy things you do not need.
May 2, 2009
