Are You Really Saving Your Money?

Tin CanOn Black Friday, I mentally high-fived myself when I used cash-back rewards money to buy several pieces of clothing I needed for my winter wardrobe. I thought to myself, “I just saved $100.” But really, I didn’t. While $100 didn’t leave my checking account, it didn’t go into my savings account, either.

We all routinely brag about a way we saved money. You’ll hear people wax poetic about cutting the cord and no longer paying for cable, or couponing to save a few bucks on groceries, or using credit card bonuses to pay for a vacation. But here’s the big question: are they really saving?

While we claim to be saving, is that extra $40 a month from cutting cable actually going into savings or just being reallocated to justify eating out or going to the movies?

A Penny Really Saved

Abigail Perry, founder of I Pick Up Pennies, realized her mistaken assumption about saving and decided to make a simple change.

Read the rest on DailyFinance.

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4 comments on “Are You Really Saving Your Money?
  1. Thannot says:

    The easiest way to save money is to collect the money into the bank account, which gives you surety of money to be saved and with an extra interest.

  2. Chela says:

    Great post. Although I think sometimes, oh this whatever was on sale and I saved x dollars, but the reality is that I wouldn’t have bought it for the higher price, so you’re right. It’s not saving, still spending. Hahaha.
    Chela recently posted…I Went Shopping For The First Time In Over 3 YearsMy Profile

  3. FinanceQA says:

    Guilty as charged! Often we think of retail discounts as saving, especially when we’re not paying full price for an item. In fact, we just paid less and not saved on our bank accounts. I shouldn’t call it savings next time.
    FinanceQA recently posted…What Does FDIC Insurance Cover?My Profile

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