Everybody knows that “A penny saved is a penny earned.” But did you know that that’s not what he actually said? What he actually said was “A penny saved is two pence dear.” He was talking about investing. Benjamin Franklin was talking about how saving 1 penny is actually worth 2 pennies.
That’s pretty good investing advice, from an era that had no electricity or plumbing. “A penny saved is two pence dear.” Would you rather have 1 penny right now? Or two pennies later? This is the essence of personal finance. Would you rather have immediate gratification now? Or can you wait for something better, later?
When you’re fortunate enough to get a little money, there are basically 2 things you can do with it.
| 1. Spend it | 2. Save it |
That’s basically it. So, what do you do when you get a bit of money? Are you a spender? Or are you a saver? Do you let money burn a hole in your pocket? Or are you able to set it aside to use later?
Next level: Investing is a relative of saving. When you invest, you’re putting aside money so that you can use it in the future. However, with investing, hopefully you’ll have a lot more of it to use in the future!