Frugality and the Two-Penny Rule

 

Today, the Simple Dollar illustrates the common misconceptions about frugal living.

Quite simply, most of us may feel miserable whenever we try to set aside a sizable amount from our spending power. For example, I feel deprived of the movie I REALLY, REALLY want to watch at the cinema today. I can’t help it; I’m just human.

But see here, a penny or two saved will accumulate in the future, perhaps to a few hundred thousands. Trust me, it works for me in day trading. I trade with a hefty volume everyday, and the way I see it, I may lose -$3 or -$4 from my account, but if I have saved enough $2 ten times over, I will still leave my account with $13.

The same thing goes with your lifetime savings, I suppose. If we have saved a penny every day, it would be a lot by the time we’re 60. Even if at times we need to take some money for emergency purposes, the total amount left would still be sizable. 

As to the feeling of misery, it’s a matter of choosing which angle to look at. For sure, I’d feel more miserable if I get sick and I don’t have savings to pay up hospital bills. HA-HA.

~ by figsch on June 10, 2008.