Year End Review

I forget where I first heard the phrase, but I’ve become enamored with the idea of dollar bills as “Little Green Employees”. You see, there are a few different things you can do with every dollar that you earn:

  • Spend It– instead of a piece of colored paper (or more likely some numbers in a bank account) you trade your money for stuff, experiences, or services.
  • Save It– then the money will be available for future spending needs like emergencies or big ticket items (cars and houses).
  • Invest It– the real winner here. Use your dollars to create more dollars.

We’ve all got to eat, so some level of spending is inevitable, but economists will tell you that after a certain point, each additional dollar spent is going to give you less value back. Once you have your basic needs covered, you’re better off saving and investing the extra.

Now you could argue that this means some level of sacrifice; after all you’re not buying absolutely everything right now that you possibly could. However, future you is going to be pretty grateful when there’s plenty of money available for needed expenses instead of having to take on debt and live paycheck-to-paycheck. Continue reading Little Green Employees

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