Saving Money Is Earning Money and Here’s Why

One of the things I shouldn’t ever have to explain to anyone is this simple fact: If you are saving money, in any way, you are actually earning money! It’s effectively the same thing and it’s something you can do almost every time you shop. Even if all you are doing is heading to the grocery store, the gas station, or the mall, when you save when you shop it means that your money isn’t going anywhere except into your pocket just as if you “earned” it. Saving money is earning money!

Woman and piggy bank representing saving money

Something Really Good Happens When You Save

Although you could waste your precious time debating whether or not earning more at your job, side gig, or working for your Uncle Fred in Tucson is a better way to get more cash and build your wealth, why bother? (Spoiler alert: You can do both.) You deal with money every day and you have it in your hand all the time, so why not figure out new and better ways to hold on to to some more of it when you must spend it?

Even if this idea is a new concept for you, during the money times we are now living in, doesn’t it make more sense to save and make that a new way to earn? Even if you never thought of it that way, it is a real thing and millions think that way. They’re called “wealth builders” and they are pretty successful at it.

Do You Argue with Yourself About Money?

If you argue on which is more effective in building wealth— saving money or earning more—then you are wasting your time and that is the same as wasting your money. Why not just compromise and say that they are really just the same thing.

Here’s a prime example of what I mean. If I have to buy a new TV set and I get a good deal by saving $400 on it, mathematically it works out the same as getting a $400 windfall. That’s me earning money by spending less than you or anyone who just doesn’t think the way I do.

Doing what I suggest here forces you to focus on what is most important, the bottom line. It doesn’t matter whether you saved money, made money, or spent money because all you should care about is the incoming and outgoing of wealth.

I Learned About “Bottom Lining” Years Ago and It Pays Off All the Time

My Mom was the financial brains in my house when I was a kid and it was all about the saving and thus earning principle.

Mom didn’t have a paying job until I was about 9 years old, but she knew about money and taught it to me when I was just beginning to count. I went shopping with her, especially to the grocery store, and I always asked questions about why she bought what she did and why things cost different prices.

Since we were on the short end of the middle class spectrum, being a good shopper and trying to save and thus earn was a priority and my mother didn’t skip that lesson with me. I learned so well that I was trusted to do some family shopping even at the age of 9 on my own and walked to the supermarket to shop for her if she needed me to. We made it a game and I was definitely competitive in my attempts to best her and any other family member like my older sister who never quite got the hang of it.

Budgets Can Fight Against Stressful Money Situations

It’s kind of ironic and also the perfect time to talk about budgets when inflation is a big part of the picture like it is right now. At no time is making a budget more important than when money stress has you on the run.

Back in the late 50s and early 60s it wasn’t quite like this, but when you aren’t in a position of wealth, budgets impact your success at becoming wealthier and that can be dramatic.

We created and used a budget and it forced something in us that can be applied to everyone (and should be)!

Having a budget puts a higher emphasis on saving money because people who budget will have to log down how much they saved as a source of income. It forces them to think about the activities they do that made them “earn” when spending and they do their budget analysis.

Is This Some Kind of Smoke and Mirror Trick?

You may think that talking this way about your spending, saving, and earning money is really about just spending less money and it’s not something that’s a new idea. After all, we like to do that and we try frequently, don’t we? If you answered no to that, please feel free to leave the room now.

This concept lets you keep more cash and is the most effective way to create a link between saving and earning money. The controlling of the spending is still up to you.

Yes, if you become obsessed with the “happiness” of saving it is possible that you might end up buying more things because you like that feeling and it puts way too much emphasis on the savings that you made. In a push to increase the amount of earnings, you could end up spending more money than you ever needed to spend.

What These Earnings Can Do!

Saving money that is actually making money can be a real blessing if you take action with it. You can do that by tucking it away to make interest or even earn dividends.

Otherwise, just re-spending it when spending less money than one would have spent the first time doesn’t accomplish a whole lot.

The main point here for me is that you learn something about money, your spending habits and the importance of budgets, shopping and building wealth in a way that you control.

Yes, all the other ways we talk about matter when it comes to wealth building, but they are dependent of many factors you don’t control the way that you control spending your money. So that’s why I tell you about it now—when your money may be tighter that it has been in over 40 years.

Final Thoughts

There’s a limited number of ways to get your hands on more money and build wealth. No, heading to the bank after hours with a mask and a gun isn’t one of them. It’s about working and earning. It’s about saving money that converts to earnings. That’s what today’s lesson is about. Start thinking that way now and you can make things happen just when you need it most!

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