Our predecessors often said that if you earn one rupee, you should save 75 paisa and spend the rest 25 paisa. But these days the trend has reversed. People, end up spending 75 paisa and save up only 25 paisa. The trend reversal has definitely hit the youth of today.
They don’t know what to do with the money once they start earning it. So, remember, a penny saved is always a penny earned. It actually means that while spending the money the money goes like water and you will get nowhere in life. But if you save up each of your money, your money will shortly reward you in near future.
Take an example for instance, there are two people. Both of them have Rs. 10 in their pocket. One goes and spends the money on something useless just for the whims and fancies for spending money. But the other one saves up his money and earns Rs. 10 more on the next day.
At the end of the day, the one who spent his money is left with nothing and probably has increased his liabilities because he won’t have any funds to get a proper meal next day. But a person who earned 10 Rs is now left with 20 Rs.
He has probably increased his assets while the other one has increased his liabilities. The one who saved up his money for future use actually stands at a better financial position then the other person.
This example actually clarifies the fact that a penny saved is equal to a penny earned because that money now could be put to a greater use.
The advantages of saving money are plenty. You could deal with any contingent liabilities i.e. the liability of which the owner has no clue about, from the money you have set aside.
This means that supposedly a mishap like an accident, riots or damages occur, the owner of financial implications will be reduced to a greater extent. This will also make sure that the business of an individual has the greater capacity to absorb shocks since it always has some cushions to fall back to.
Saving your money for future is very necessary. Also saving your money helps you to bear heavy expenses when the need arises.
Also, instead of wasting your money you could save it up and invest it in different schemes which provide returns. This could also supplement your main income and running the household effectively.
This proverb does not ask you to not to spend. Rather it asks you to spend only on things which are valuable in long run. People have become materialistic in nature and want to come off richer than they actually are.
The youth of today is pretentions and just for the sake of bragging in front of some of his colleagues and friends, ends up purchasing things that are unnecessary in utility but necessary for showing off.
We all should live in the moment but we all should think about the future too. The future is uncertain and is way too risky. But if we have enough saved up with us, we can counter any problems that money can solve.
Remember, money is not unlimited. Even the millionaire’s have an end to the money they can spend. Because if they keep on spending their hard-earned money on luxurious and flamboyant things, they will eventually run out of it. Money is like the dust of our hands.
As soon as it comes into your hand, it just goes away. So, value your money. Money is not an unlimited resource. A number can be put to your money. What happens is, that when a person starts working; he is immediately tempted to savor the test of his hard-earned money.
But giving into temptation in that every moment leaves you on cold grounds and no savings for the future. A person should only spend that much which he can afford. Mimicking others and spending money just for the sake of showing off will not get you anywhere.
The people for whom you buy things to show them how much you have got will walk out of your life later or sooner. But what will remain with your area the consequences of inconsiderate and reckless spending. Value money or else money will not value you.
When this proverb was originally made, the meaning of the word ‘penny’ i.e. the contextual meaning was the unneeded expenses that people undertake. I have seen a lot of times in families that people try to gift you things which are out of their affordability but still, they will do it for the sake of their reputation.
I mean what is the use of reputation when you don’t have food to eat and clothes to wear. This is something beyond my comprehension.
This proverb finds it’s traces back to the history of Greeks and Romans. But it acquired its current form only under Benjamin Franklin who is said to have uttered the very same words.
The man who has a tendency of spending all his income is probably poor than the one whose income is less but his savings are more. Also, it should be kept in mind that this proverb does not ask us to become a miser.
We should be able to meet our needs first and the satiate our wants prudently by saving up the extra money.
So, I would like to now say that even financial advisors will ask you to save your money if you want to prosper. Sure, they give you ways to save your money but they cannot force you into doing that.
At times, advisors come in view and help you out. Also, they help you in finding the correct investment and guide you on the correct path so that you save up money and it does not go down the drain.
So, whatever I have written today just reinstates the fact that a penny saved is a penny earned and if you learn to follow the principles of this proverb, you will surely attain success.