Saving Savvy

 

"I've got to warn you, Roy," Tom began. "I was saying on the way here that, for the first time in half a year, I wasn't particularly looking forward to our monthly trip to the barber. Your guidance on how to create wealth has been fantastic, but it's hard to get psyched up about a lecture on the merits of thrift. Don't buy fancy cars; don't abuse credit cards; don't borrow to go on trips; look after the nickels and dimes and the dollars will look after themselves; don't underestimate the power of coupons; a penny sa—"

"We get the point," Roy put an abrupt end to the litany. "But my philosophy on today's subject might surprise you."

"What exactly is today's subject? Tom seems to think he knows. But all you said last month was that we were going to discuss saving, spending, and credit management. So," I ventured, "is what we're really talking about the proper handling of our day-to-day financial affairs?"

"That's not a bad way of putting it," Roy commended me. "In this instance, by 'saving,' I mean saving for things like trips, VCRs, and cars, not saving as in the ten percent fund and retirement funds. By 'spending,' I mean purchasing goods from groceries to large-screen TVs, not investing. And by 'credit management,' I mean the use of credit cards, lines of credit, and personal loans, not investment loans and mortgages. So, the proper handling of our day-to-day financial affairs is probably a perfect description of today's agenda."

"But Tom probably wasn't far off the mark with his little routine, either," Cathy speculated. "You are going to give us a lecture on the merits of thrift, comparison shopping, and a debt-free net-worth statement."

"I confess that I used to espouse, in fact 'preach' may be a better word, the benefits of those things. Historically, my