I was reading The Simple Dollar late last night, and a single statement hit me like a ton of bricks. Trent wrote:
Every time you spend a dollar, you sacrifice a bit of your future.
I’ve known this concept for a long time, but I never thought of it in exactly those words before. Let it sink in. Every time you spend a dollar, you sacrifice a bit of your future. Last night I broke that single statement down in my mind.
Every time. Not sometimes. Not most of the time. Every single solitary time.
You. Not my husband. Not my children. Me. My responsibility.
Spend. Exchanging my money for something else. Trading it. Is the exchange worth it?
A Dollar. Not $100. Not $50. Not $20. Not $10, but one dollar. Less than a 20 ounce bottle of Dr. Pepper costs. Less than a DVD rental. Definitely less than dinner for 4 at McDonalds.
You. Again me. My responsibility.
Sacrifice. Merriam-Webster Online defines sacrifice as the “destruction or surrender of something for the sake of something else.” Destroy. Powerful word.
A Bit Of. Not at once. Little by little. Chipping away, so you don’t notice. It’s kind of like when your children grow a little bit. You don’t notice right away, but when you visit relatives that haven’t seen your children for a year, they see the huge amount of growth.
Your. Again, mine. My responsibility.
Future. That which I have to look forward to.
Putting it all together, every single, solitary time I spend less than the amount of money it takes to buy a 20 oz. Dr. Pepper, I myself destroy in bits and pieces the things I have to look forward to. Over time, those bits and pieces become huge chunks. And those huge chunks come from little amounts of money….less than it takes to buy a single bottle of Dr. Pepper.
Kind makes the cheeseburger I had for dinner sound like a really bad idea. Thanks, Trent, for giving me a better perspective. Perhaps I will make better decisions from now on. I think I should print this post out and hang it on my wall.
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Funny I usually think this way, but I know it’s not the norm and I certainly have my share of debt. I think it’s because my maternal grandmother actually emigrated to the US (by herself at age 16, incidentally) from Poland. She married and had four kids (one was my mother) but they were always poor.
And I remember my dad telling me she always had the lights off and trying to save money. My dad told her she was only saving pennies having the lights off. To which she responded, in broken English, “If you had $999 and 99 cents one penny would give you one thousands dollars. We keep the lights off.”
She died when I was two years old so I have no memory of her, just the stories. But I frequently think of her when I am trying to save and sacrifice.
Good post, very thoughtful Lynnae.
@Cardiogirl – what a great inspiration your grandmother was! Now she had the right attitude!
I fully agree with the statement and the sentiment, but I have to say that I think that a dollar for dinner is not a waste of money so long as you didn’t have something prepared at home. I’m pretty sure I couldn’t make dinner at home for a dollar a person.
@Heidi – I agree with you on the dinner thing. Unfortunately the cheeseburger cost more than a dollar, plus we bought food for the rest of the family, and I could have prepared a better meal at home. I was just short on time and hadn’t planned very well. Had I planned better, we would have had a less expensive, healthier dinner.
Live and learn. Next time I think “we’ll just pick something up if I don’t have time to cook”, I’ll think of this statement and throw something in the crockpot.
Although I think the statement is true in many ways, I must admit that it would make me sad to view every purchase in these terms.
It would be hard for me to view every dollar I spend feeding my family or heating my home this winter as destroying my future bit by bit. There has to be balance with living (and enjoying) your life today and preparing for the future. I would be afraid that thinking like this could lead to a fear of spending money on anything, even on what’s important. I know that is extreme but I could see it happening if people apply this to all spending instead of just discretionary spending.
Maybe it needs to read “Every time you spend a dollar *frivolously*, you sacrifice a bit of your future”.
Just a different perspective – I like that this post got me thinking. Thanks, Lynnae!
Good point, Melissa. I know that for myself, I would never have a problem with feeling guilty about spending money on necessities. I love a good challenge, so trying to spend as little on necessities as possible would be fun for me. I thrive on free-after-rebate deals. :)
I like your addition to the original thought. Every time you spend a dollar frivolously, you sacrifice a bit of your future. You’re right. That makes more sense.
Honestly, I came here to say what Melissa said already better than I would have. I actually have been mulling it in my brain as a post since I read Trent’s yesterday (but then other things happened to distract me).
Think of this:
Every time you choose to save a dollar for the uncertain future, you are sacrificing a little bit of what could be today.
Sounds crazy, right? But the first statement, taken to an extreme (and the first statement – very extreme) basically makes the second statement true as well. If every dollar is viewed as sacrificing the future, every dollar saved ends up sacrificing a bit of today.
That can be both good and bad of course, which is why there has to be a balance. We have to live for today but also save for tomorrow, and try to do that in a way that it makes sense for both.
Just my 4.5 cents (inflation, you know) :)
paidtwice, I totally get what you and Melissa are saying, and you’re absolutely right.
I think the reason it hit me so hard is that my husband and I don’t generally have a problem spending money in the present.
I can be a pretty strong willed person, so sometimes it takes a pretty strong statement to knock me upside the head and make me wake up to reality. I don’t think even this statement could make me stop spending some fun money every once in a while. I want my children to have good memories of their childhood, you know. Not that good memories require money, but it’s fun to go to the zoo or camping every once in a while. Just not every weekend. :)
While Melissa is right, we shouldn’t be obsessed with these moment-by-moment choices, there is a guiding lifestyle principle that means we think this way on a medium-to-large scale.
Good intensive thinking and writing on the text that had caught my attention as well.
I love to use little statements like these, especially when it comes to helping someone else realize that spending $1.19 a day to stop and get a coke could be $434.35+ in savings at the end of the year. Unfortunately, I often take it to extremes with my family and we end up feeling guilty for buying things we want/need.
PaidTwice is right, you definitely need to find a balance :) But it can be such a great tool!
I have to admit that I’m still a work in progress for me when it comes to spending. I’ve made a lot of improvements. We’re, for the most part, saving more and spending less. The biggest change I’m trying to make is when we buy things outside of the regular budget. I finally told the wife before we buy anything we need to sit down and figure out where it will fit in the budget BEFORE we buy it not afterwards.
Indeed. But then sometimes I don’t want to buy food for dinner and have to smack myself and point out that I can’t spend the money if I’ve died from not eating. Or that hospital stays cost a lot more than a frugal dinner.
I like Melissa’s addition of “frivolously” because that rules out certain necessities. You’re buying today from tomorrow and tomorrow from today. Since it goes both ways, it’s best not to hurt either one. :)
Ahhh, when it hits you upside the head. I agree you should print it out and tape it to your checkbook or wallet. Nothing like a constant reminder!!
Every nickel counts too…:-) In all seriousness, this is a great way to “teach” people about personal finance. Too many people think “it’s only a dollar, what’s the harm?”, but every single dollar ads up over time. Every little bit helps!
I have to agree with Paidtwice too, and Randy made a good point about not over obsessing about moment by moment decisions. I think it’s all about balance. Save enough for the future and spend enough for today.
And what if the dollar is what you want to spend…
Let’s twist the thought a bit…
“Every time you save a dollar, you sacrifice part of your present desires, needs and wants.”
You do know that you’re going to die one day, right. It’s just a matter of when and how. At what point in your life will you consider it OK to spend that dollar?
I’m loving this conversation! I totally agree that there needs to be balance. I tend to be a person who does sacrifice the future to live for the day, so to speak. I think that’s why this statement really spoke to me.
If you don’t have a problem with reaching your financial goals, I agree this statement could seem too harsh.
@xyzzy – I think I will consider it OK to spend that dollar on a case by case basis. Yes, I will spend the money to do something special with my family at Christmas. No, I don’t need to go over budget on eating out every month. I don’t have a problem at all spending money on necessities. But a treat should be a treat, not an every day occurrence. And lately my treats have been coming all too frequently.
When I have my financial house in order – a fully funded emergency fund and a decent retirement savings at the very least – I’m sure I’ll ease up on the budget a bit.
I enjoyed your technique of breaking down a quote and maing an article of it. I hope you don’t mind if I borrow the idea and give you credit for it?
P.S. Your site design is rather lovely. I will be bookmarking you and looking forward to coming back. Peace.
Borrow away, Matthew! And thanks for bookmarking me!
yeah every dollar spent may be sacrificing your future but your future isn’t promised and now is. and screw future me that jerk would do the same to me if time went the other way
@francis – I agree that your future isn’t promised, but if you don’t think about it at all, and you do end up living long enough, you could be in a world of hurt if you don’t plan for it.
I agree with Melissa also – as much as I hate it, I find myself digging more and more scrape here and there. Being frugal is beneficial, but sometimes it seems like it just takes a piece of you. I actually have to try to spend more, I think I’m driving my wife crazy being so frugal! :) Nice post though -
You are really three different people: you of the now, you of the past, and you of the future.
Now, I find that I often curse that selfish me-b*stard of the past for leaving me with some kind of problem he should have solved.
On the other hand, that me-stranger of the future has never lifted a finger to help me. But doesn’t he expect me to set him up for the sweet life? You damned well know he does!
I simply cannot understand why I-of-the-now am sandwiched in between two such inexexplicably selfish jerks.
God must hate me or something to have saddled me with such nitwits!
I wonder if they’re conspiring to ruin my day or something?
Anything that has you stop and look at what you’re doing and evaluating how well it works for you is a very good thing.
I agree that it is about balance. Sometimes spending that dollar actually builds your future, like buying a house or a business, getting an education…
I think the key is to first get clear on what you want your future to be. Then, with each expenditure, decide if spending that money gets you closer to or further away from that future.
Great post! Thanks!
Even if thinking about this has you buy one less cup of Starbucks a month, that’s money saved towards whatever future you envision.
Money is intended to help us live better – through spending it, not by obsessing with it. I don’t think I will feel better if I think all the time if I have to spend that doller or not – we live enough stressful life.
I think more so than what the statement actually means (or implies), what’s important is that it made you pause and become aware of what you do in the present. And maybe you can take it a little further and think about how what you do makes you feel – not just about the future, but also about the here and now. It’s not just about how that dollar towards the cheeseburger could have compounded to $400 if you had saved it. It’s also about how eating that cheeseburger makes you feel. If you truly enjoyed it in the moment, then what’s $400? Even frivolous spending in the present is worthwhile if you can truly take the time to enjoy it and not worry about the ’sacrifice’ your future self will make.
Personal financial decisions are as personal as self-esteem, dieting or what to do with your garden in the Spring.
One must be frugal if one has no money. Obvious.
One must be frugal to save for something very special in the not-too-distant future.
One may have enough money to spend freely, one can still stop drinking Dr. Pepper and send the savings to charity. (Even if one can afford to write a check,every soda one does not buy is taking a level of moral responsibility for others on a daily basis.
Not a bad lesson to teach children as well.
A different perspective:
The big guys in the financial sky state that to be financial secure, one must save enough
money to cover 6 months of his/her financial obligations.
Not too many years ago, 3 months were considered sufficient to cover any crisis.
A financial diet:
What will happen in the next second? Americans are facing increasing violence in our daily lives.
Is it always wise to bring a diet salad to the office for lunch? Why not grab that chocolate bar, and love everything about it?
Let us realize that, even if we can only afford a 10 cent candy, life is for the living. Now.
Thank you for hosting this wonderful conversation.
Wow, what a statement! That really struck me between the eyes too! I’m going to print that out and post that on my fridge, and put a copy in my wallet, and slip it into my husband’s wallet too. And that will be put on my computer desktop so I see it every day.
I agree that you must spend *some* money unless you resort to thievery. BUT, I think you can make a huge difference by adopting this mindset to look at all of your expenses. Because little by little, you can either attain your goals, or sacrifice your goals.
Some money is required. You need to drink, but water is the cheapest, so any money you spend on anything but water is in essence wasted. You need to eat, but if you consume more food than you need to (my problem) or more expensive food than necessary (sometimes my problem), then you waste that money. Eating out is definitely a waste of money, not to mention a sacrifice of health (almost always) as well.
Kathy
Your Title will be a page in my “Advice Scrapbooks for the Grandkids” that I am making for them – my legacy back to them, so to speak… I really liked the quote, and it explains a lot of my feelings for wasteful spending…Wasteful, in my mind. But, anytime I can get a meal for under $1, I usually feel it is a bargain, and will not feel guilty about it – that’s my “It’s ok to spend – Level!” Thanks!
I agree. I think we have a responsibility to our children to teach them that instant gratification that is preached by the world is fleeting.
I prefer a more balanced attitude.
If one has a good automatic plan in place for debt reduction/elimination, savings, investing, and insurance, to have peace about providing for ourselves and family, as well as charitable giving in order to live with an open hand and share with the less fortunate, the remaining monies (budgeted) can be spent without thinking “I’m sacrificing my future!!!” every time I spend a buck.
Perhaps it’s not your future you’re sacrificing; perhaps it’s someone else’s current need and you’re supposed to give that dollar.
Don’t be so frugal as to be miserly; even if you end up wealthy you’re still Scrooge.
Don’t be obsessed with “building bigger barns.” Jesus taught about that, and called the man a fool. (Barns for storing grain, representing wealth in agrarian society–today that would be money!)
(Assuming you’ve taken care of the basics first and have the cash for it): if you want that Dr. Pepper, have it. Don’t worry. Enjoy that sweet plummy, peppery taste, the tickle of the carbonation in your nose, the sensation of coolness in your stomach…ahhh, so refreshing…
Be Here Now!!!
I had a CEO of a company I worked for make this statement about lowering our expenses.
You can only spend a dollar once. Make the most of every dollar you have been given.
I think this is far better advice.
I have to agree with those who posted there is no balance in that statement. Today, I had to spend almost $10 to buy some pedialite for my 2 year old daughter who spend the entire night puking like college frat girl. Every 45 minutes. Dry heaves included. Bless her heart, she had a horrible night and can’t even blame herself for being stupid.
I wasn’t going to fight with my wife – we have some gatorade in the fridge. Water works. Some battles just aren’t worth the fight. However, I did jump on line to look for coupons before heading out the door.
Here’s the beautiful thing about zero based budgeting. I accommodate for all of lifes necessities now and accommodate for life’s pleasures now & later. But I do those to a lifestyle that is within my means. Its called making the most out of every dollar.
I have two SAHM in my FPU class now. Both of them are overjoyed because they are they are writing a zero based budget and putting money in the budget for them to buy clothes for themselves. Prior to this, every time they bought themselves a piece of clothing they felt guilty for spending.
I buy Mountain Dew and even paid cash to take the family to an indoor water park for day this winter and know my daughter’s 529 plan is being funded. Our Roths and our 401k are being funded. This is the beauty of Financial Peace. A written game plan for your money is not a limiting factor at all.
I’m all for being frugal. I’m all for getting a good deal (and believe you me I get incredible deals). I’m all for squeezing a quarter so hard it yields four dimes. But I’m for having a life as well.
GoingGazelle
I think the focus of the original saying, plus the focus of this post, is not merely spending money–because everybody has to spend some money at some times or else be a thief–but on *wasting* money. Everybody defines “necessities” differently–some people think going out to eat or to a movie every so often is a necessity. They merely put this pleasure ahead of their future. Some pleasures are worth it–charitable giving, for instance, housing, clothing, etc. Most of the time, though, we do waste money, and when we do, it definitely sacrifices the future, one dollar at a time.
Kathy
Great insight from PaidTwice: “Every time you choose to save a dollar for the uncertain future, you are sacrificing a little bit of what could be today.”
A catch phrase like Trent’s is fine if it works as a tool to help you think twice about what you’re doing, but to work as an effective tool it shouldn’t be fallacious. You shouldn’t be guiding your daily choices according to a principle that’s wrong, as this one is.
It is not true that “Every time you spend a dollar, you sacrifice a bit of your future.” Sometimes you spend dollars to build your future: for example, a dollar spent on high-quality education or on effective vocational training is a dollar that makes your future better. A dollar spent on a routine medical check-up or on a program to quit smoking is a dollar spent that makes your future better. A dollar spent on a book that opens your mind or informs your soul is a dollar that makes your future better.
It could be argued, as PaidTwice implies, that the very act of pinching every dollar pinches your life and your outlook, and that over the long run, the habit of limiting your horizons will limit your future.
If you need to restrain yourself from diddling away a dollar on a soda, a better device might be to ask a simple question: “Will this purchase benefit me?” About a can of pop, the answer’s pretty obvious: no, it will rot your teeth, jack up your blood sugar, add some fat to your belly, and take you another step down the road to diabetes and heart failure. Not making the purchase WILL benefit you by steering you toward a healthier beverage, incidentally saving you a buck or so.
The more I read the wonderful array of PF blogs on the Web, the more I think the point is not money (making it, keeping it, growing it) but quality of life and how we can manage our money and our thinking to make our lives good over the long run. While frugality and restraint play a part in that, it’s very different from and much more complex than pinching pennies.
Great Post. I am emailing to all of my grown daughters. I read another post this morning about depositing one dollar a day into an interest earning, tax free account for your whole life. Especially if you did it from the time you were born. Mind boggling.
Thanks!