A Dollar Saved is Two Dollars Earned

How important is it to save your coins? Most of us spend our change without a second thought. “It’s only a dollar” we say. And yes its true - a dollar doesn’t go a long way these days. But is a dollar really only a dollar? Maybe a dollar is worth more than you think. Besides, every little bit really does add up. Lets take a closer look.

Coffee and a Biscotti, $2.50. Bypass that twice a week and you’ve saved the equivalent of a $5 bill. Does the paper aspect of money make a difference? No, its still worth 5 loonies. But its strange how we have a harder time parting with our paper money - $5, $10, $20, $50, $100, $1000. Much easier to put something on debit, credit, or just use pocket change. Anyways, continue this pattern of saving for a whole year and you will have saved $260. Invest that money as described here and you will later be sitting on several thousands! Just a buck eh?

What are the implications of wasting a dollar? Well, we must go back to work to replenish the missing money. And if we really think about it, there are numerous different expenses that we must incur just to work! This is called the cost of working. Consider the following list of expenses that may apply:

• Public transit fares

• Gasoline for vehicle

• Oil changes and maintenance expenses for vehicle

• Parking expenses

• Income tax

• Unemployment insurance that is mandatory yet you may choose never to use

• Proper dress attire suitable for the workplace

• Cosmetic expenses in order to appear as desired on the job

• Expensive meals due to being away from your fridge at home

• Babysitter expenses since you can’t be there to greet the kids after school

• Education expenses required to attain and maintain your job

• Pharmaceutical expenses required to fight sickness received at work

• Massage therapy and gym memberships needed for de-stressing after work

• Physiotherapy needed to combat posture-related conditions caused at the workplace

• All other expenses that you incur in order to successfully do your specific job!

The reality is that our wages and salaries are not what they appear. In fact, they are often reduced to half. If you make a million dollars in your lifetime, but had to spend $500,000 in order to make that money, what did you really make?

A dollar saved is two dollars earned. You have to make two dollars for every dollar that is wasted.

I hope this will change the way you view the almighty loonie. Don’t be your own worst enemy in the pursuit of financial independence; save your money for a better tomorrow. If I have overlooked anything in the cost of working expense list above, please speak up. Share your thoughts and chime in, it would be great to hear from you!