When saving isn't the best choice
"We are not to judge thrift solely by the test of saving or spending.
If one spends what he should prudently save, that certainly is to be deplored. But if one saves what he should prudently spend, that is not necessarily to be commended.
A wise balance between the two is the desired end."
--Owen Young
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When I saw this quote, it intrigued me and I kind of wish I could chat with Mr. Young to find out exactly what he meant.
I'm thinking he's talking about being penny-wise and pound-foolish. For instance, if your shoe starts to fall apart and you don't pay for a repair, you'll then have to buy a new pair of shoes. Or if you keep on pouring money into an old, inefficient appliance, that could be more expensive than forking over the cash for a replacement unit.
I also wonder if he's cautioning against the miserliness that we frugal people can sometimes be susceptible to.
What do you think?
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Joshua's 365 post: Almost magical
There is also the view that scrimping on necessities so that you can die a multimillionaire is just plain silly. Sure you're heirs will be well off but you will not have enjoyed what you earned.
Also, giving. Never be so frugal that you can't "afford" to give.
(the considered, thoughtful, within-reason kind of giving)
I thought of that, and I totally agree that we frugal people need to work on being generous. But then I thought maybe that's not what he's getting at in the quote because he used the word spending, not giving.
Regardless, your point is well taken.
It's something I constantly have to to remind myself of "” and I wish it stuck. A personal failing, I guess. :/
I don't think he means giving necessarily. I think it is more about learning when to let go, what sacrifices to make. Small choices can make great things happen. Sometimes choosing to spend can have a greater outcome than choosing to save.
Wesley said it best (and I'm paraphrasing) "Earn all you can, Save all you can and Give all you can"
I agreed with what you said as a possible meaning. I also think he may have meant that while we are on this earth we are too share with others when we can and not be miserly toward our brother's needs. We are also to give to God his "share" first...that means our church, temple, etc and taking care of one another. Just another thought on the meaning.
Perhaps also that, as the Bible says, we are given enough to live on and soemtimes more- so that we can help others. Maybe he is saying that sometimes, alot of time, really, we should be spending in order to help others who lack things they need for life...
I think he's trying to tell us that we should be careful with money but to also enjoy life and share what we have. I could be wrong but in my head thats what I believe he's trying to say.
I think you are onto something with Mr. Young's meaning. I did like the post you put out there the other day about not judging how people spend their money (clothes line post I believe). I think we all need to do what works for us and our family. In my house that means I am the financial leader. I take care of all aspects of our family's finances. It is a lot of responsbility, but it is what works for us. Ahem, I might add that I do a pretty good job too. Just refinanced our house from 5.0% APR to 3.125% APR and went from 30 year to 15 year (shaved twelve years off of our responsibility)! Yay.
Tina, I don't even have much to say except good for you!!! My husband and I are currently shopping for our 1st house and it's so stressful!
This made me laugh. Yesterday was a retail day in our world (other than groceries, most unusual). We are attending a semi-formal event this weekend. In the morning, I shopped consignment and found a lovely, gently used dress at the first place I looked, Hooray! After work, DH and I went shopping together. He has lost 50 lbs, nothing fits and he only owns a (very baggy) sport coat anyway. We ended up buying him a brand-new suit, on sale, of course. We spent twice as much on his outfit. I figure he will wear his for years and years, while I will be lucky to get three wearings out of mine. I can't wait to see him (and us) all dressed up and believe both purchases were money well spent. Side note - when we were paying for the suit, we declined the open-our-credit-card-account-and-save-15%-offer, telling the salesman we were in escrow on a new house and couldn't open/close any credit accounts. Surprise! He came up with an extra 10% coupon, just for making a purchase.
I see this bit of the quote "But if one saves what he should prudently spend, that is not necessarily to be commended" as meaning this (as one example) -
If 2 items are sitting side by side and you are swayed to buy the one that has 50% off and you buy it in sake of the other than you truly did need/desire. That isn't frugal, that's false economy.
I agree.
I think it means people who spend spend spend on stuff need to do some saving for the future and people who never spend $ on fun (or needed stuff) and save save save should start enjoying their $. a good balance between the two(if we can afford it LOL!) my parents were good savers and didnt' 'blow' money like crazy but my mom did get a new car (sooner than I replace mine because cars arent' that important to me so long as they're reliable) but they took 2-3 vacations each year (drove) and gave generously at Christmas and stuff for their church. I think they had a good balance at least for them. For me I'd have traveled more and probably saved a little less if I'd been in their shoes(excellent retirement plans which I don't/won't have and long term care insurance on my mom) they both ended up passing early - my mom had just turned 65 the month before and my dad was 67 and sick with cancer for 10 yrs - I think they had planned on traveling more but cancer struck both but my dad told me right before my mom passed (10 months before he passed) that they had no regets - they had done what they wanted and loved each other - he just wished they'd had their health and time to keep doing what they'd been doing.
I guess if all you do is save just to be cheap, and never spend anything on your near and dear ones, you`ll end up old and rich, but alone and bitter!
I am posting a comment my accountant friend posted when her out-of-town daughter became very sick during tax season.
Just wanted to share my thoughts of yesterday. With Jessica sick I went to book a flight and the costs, of course, were atrocious to leave in two days. I was looking around to see if I could get anything even remotely decent and then realized, "This is why you are careful with your money all the time, Sandi. So you will have the money when you need it because you haven't squandered it all away." So I just paid for the ticket and didn't give it another thought thereafter. I just thought I'd share it because there is a time to save and a time to spend. Life is all about balance. Read Ecclesiastes 3 today and ponder it. Enjoy your day.
Growing up, there was a neighbor mom up the street who once said to me when I became a teenager that she regrets some of her frugalness. Her example was not putting another log on the fire in the fireplace because she was worried about the expense. Maybe this quote means to spend wisely, but not to pinch pennies to the point that you will regret your frugalness.
To me, it's the difference between being frugal (mindful, thoughtful, careful spending) and being cheap (won't spend a penny to save their lives).
There is obvious greater value in spending over saving, such as medical care, university educations, and quality food. But there is also the intangible value to thoughtfully spending money on rejuvenation (holidays, a meal out, entertainment). If you work, work, work and never rejuvenate, you are soon too exhausted to enjoy the life that you've been given.
It's all about balance, within one's resources.
I interpret this statement to mean that "not spending" isn't the most fiscally prudent choice. Example: if your roof has a small leak, spend the money to fix it now rather than spend a lot later to replace the whole roof. Or on more mundane scale: buy a lot of sponges when they're cheap, rather than one at a time when they're expensive.
I think it's a tough choice. But it's similar to the thought of buying a real or fake Christmas tree. My choice is fake, but the reason why is that because even though the creation and probably disposal of the tree is not green, using the same tree for years and years is pretty green and frugal!
It's not about never spending but about being smart about spending. And I think that means thinking both greenly and frugally.
Don't skip a visit to the doctor's if you're coughing up blood, detect unusual lumps, or otherwise notice your body isn't acting as it should. Saving a copay isn't worth putting your health on the line. Similarly, don't subsist on ramen noodles and frozen dinners just because they are cheaper than fresh fruits and vegetables. That's what I take away from the quote.
My first thought on the frugality quote was that if I saw someone in need, especially a friend, I shouldn't hold back because of my own desire to hoard my resources. I think this comes to mind because it is a goal to have a supply that I CAN give away.
And, might I add, that this is a goal beyond what is understood as a tithe.
Tithing was meant to be the "floor" of what we give away, not the ceiling--so having "extra" beyond tithing to give to others is really what God wants us to do!
We have used Turbo Tax for 15 years, very easy to use, even if you are not an accountant. I agree, it really translates the IRS code into English. It's a great way to save the money you would spend for a CPA.
This is repeating what some of the others have said, but I think he's mostly talking about the difference between 'cheap' and 'frugal'. This was a concept taught to us years ago in a course by the late Larry Burkett; he actually says that his wife accused him of being cheap, not frugal! I think as Christians we can easily see the difference. Spending itself is not the enemy-spending beyond our means or unnecessarily is! Some one who is frugal lives within their means, refuses to spend impulsively and carelessly, and sometimes goes without a 'want' due to the cost. Sometimes, I refuse to pay the money for something, not because I don't have the money, but because I don't think it's worth that much of my $. Cheap people hoard, and are not particularly generous (and giving out of our excess is very important as a Christian) I especially like what the poster said earlier about purchasing and expensive, but necessary, airplane ticket. If we are careful and wise with our spending (frugal) then we will frequently have the money to spend on emergencies, even if we consider the cost high. A cheap person would not have bought that expensive ticket, even though it was necessary. A frugal person considers it carefully and is grateful to God for the provision!
I know all this in my head, but I'm not as good at frugality as you. You inspire me to put into practice what I have already learned!
I think this thought might also apply:
Read in a homeschooling book recently about sometimes forking over a few extra dollars to the "small potatoes" retailer at convention, rather than saving a few dollars by purchasing on Amazon, etc. The idea was that it is rather miserly to ask lots of questions of a salesperson, finger through the goods at their booth, note that the price is $2 higher than one might get elsewhere, and wait to purchase somewhere else. I would say that extra few dollars is sometimes money well spent, if it is supporting another family directly rather than a large corporation.
I agree. Like buying milk at the grocery store in our town of 800 vs. buying it at Walgreens the next time I drive the 40 miles to the town of 32,000. The benefits in goodwill and community are worth way more than the almost $2 a gallon I could save.
I would look at this through the lens of time, as well. There are many things that one could do for oneself. But if your leisure time is in short supply, better to pay to get your lawn mowed, and spend that weekend time with your family instead.
I think he could also be cautioning against what I call false economy. To me false economy is when you buy a cheap version of a product & then when it dies (usually sooner rather than later) due to use instead of replacing it with a more expensive higher quality version that will last for many years & much use you replace it with another cheap version of the product & continue to repeat the buy cheap, wear it out, buy cheap cycle. Eventually the day comes when you decide to buy the more expensive, higher quality version & by the time you do you've paid for it twice, once by continuing to buy the cheap versions as replacements & a scecond time by buying the more expensive, better quality version. Having said that I do think there are times that buying a cheaper version of something that you're not sure you will use enough to justify buying an expensive version is worth it. I've done that with several things & have been glad I did. A stand mixer is one thing that comes to mind. I bought a model that could be removed from the stand & used as a hand mixer. It wasn't great as a stand mixer but makes for a great hand mixer & ended up putting a stand mixer on my birthday/christmas list & got a wonderful Kitchenaid mixer that I love. So I ended up with a good hand mixer & great stand mixer without spending a lot for something that wouldn't be used very much.
I think, too, that he's pointing to the place we give money in our hearts. Money is simply a tool, but how we handle it can reveal our hearts. When we spend what we should save, we are often putting the items purchased in a place of greater value than they deserve. When we save what we ought to spend, we are putting that money in a place more valuable than it deserves. Sometimes a heart too bent on saving is a heart putting money saved before God himself and it can become a form of idolatry.
We were made for relationship - with God and with those He has placed in our lives (spouse, kids, family, friends, etc) - and sometimes frugality becomes instead about saving the money when what we ought to do is spend it as a way to honor, enjoy or grow a relationship. I think of a friend whose husband won't allow their family to eat out *ever* so she hates to travel because road trips mean she has to prepare a cooler full of food and with a house full of little kids it becomes more work than feels worthwhile. How much better might it be to spend a little extra for the sake of special family time and the relational benefits that result? Or a friend who attends grad school with the typical tight finances of a grad student and how it has touched her heart when my husband and I send unexpected Starbucks cards or lovely bath salts during finals. These are the small blessings that we are meant to enjoy - assuming our money has been managed responsibly and we have extra - and I think this is at least part of what the quote is saying. Frugality is important, but it cannot become more important than loving God and loving our neighbor as ourselves.