A Penny For Your Thoughts

A penny saved is a penny.......finish the sentence .... 

Odds on are that you finished the phrase with earned.... a penny saved is a penny earned...

This is a famous phrase highlighting the importance of saving. I'm here to highlight a different saying.

A penny saved is just a penny saved. Essentially your penny saved will always just be a penny until you spend it or invest. 


The reason I'm writing the difference of these phrases is to highlight how the lack of knowledge regarding what you do with your money can change your whole approach to your financial playbook. It's important to understand what your goals are, and what do you want long term from a financial freedom standpoint. For some guys it may be to save all their money until they figure out what they want to do , for others its to save until they can start putting down payments on rental properties or invest in small businesses. 

We can listen to all these old sayings and read all these books but it's null and void unless we do research ourselves and see how everything pertains to our own personal situation. One form of investment strategy may not be the right move for me but may be great for the next individual. 

I think it is important to not generalize and pigeonhole ourselves when it comes to this stuff. Of course there are basic principles that you should know and understand but there's always going to be different investment strategies.

A penny saved is truly a penny saved though if you think about it.. I mean I understand you saved it so you earned it but eventually you are going to either spend it or just hold on to it forever and still have that same penny... compound interest doesn't hold true for this situation.