Penny Saved Is Penny Earned Essay

The quote “a penny saved is a penny earned” was quoted by Benjamin Franklin. 

Its Meaning: It is generally said that“a penny saved is penny earned” or “money saved is money earned”. It means that money that is saved is equivalent to the money that is earned. Money is not spent remains in our pocket.

Money resources of even the richest man on earth are not inexhaustible. Extravagance brings even millionaires into want. So the habit of saving should be practiced by all.

Everybody can make small savings from his income. The man, who spends all that he earns, is poorer than the man who earns less, but saves something out of his small income. We must live within our means. The spirit of vanity often leads us to show ourselves off as richer than what we actually are.

Extravagance leads to ruin: Luxury leads us to squander money for nothing. We should be careful that we are not vain or imprudently benevolent. Sometimes, we buy a thing because it is cheap, even though we do not need it. The cheapest thing then becomes the costliest.

However, we should not be at the same time “penny-wise and pound-foolish”. We must not hesitate to spend money, when it is really necessary.

Miserliness: We must also guard against the habit of miserliness. Money is for use and not for hoarding. Our normal needs should be first met, and then we should save as much as we prudently can.

Habit of saving: We must cultivate the habit of saving from an early age. Once we grow extravagant, we shall find it very difficult to save money for future use, when we are old. Young men are naturally spendthrifts. They have seen little of the world and have not learnt from bitter experience that ‘willful waste brings woeful want’.

Provision for old age: In our youth we ought to provide for old age, lying by something from our income, however small it may be.

Category: Essays, Paragraphs and Articles, Proverbs, Sayings, Idioms and Phrases

A Penny Saved Is A Penny Earned Essay

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“A penny saved is a penny earned” this was one of the Franklin’s thirteen virtue that was meant to make people aware about frugality and thrift and help them to manage their economic and financial status. Frugality means acquiring goods and services in a restrained manner, and resourcefully using already owned economic goods and services, to achieve a longer term goal. Nowadays, this virtue is not applied by the Americans in their lifestyle like it was used to because they are much more concerned to get what they want, no matter how much it costs them. Americans today are profligate spenders who are not seriously concerned with frugality and thrift like they used to be as they spend wastefully on the things they like rather than…show more content…

Then he spends the remaining surplus money gambling. Now a new born is expected in his family and he has very little saving to cover up the additional expenses. Jeff needs to opt for the frugal practices to manage his family’s living in order to prevent taking any last minute, desperate measures like taking loan with high interest or mortgaging the house.
Americans usually prefer to spend their leisure time taking luxurious vacations at exotic hotels and resorts filled with marvel and opulence that surely costs lot more than what an average person can earn. A trip like these can easily cost about fifteen hundred dollars at least. So, people are spending about a month or two month’s salary on these vacations. Furthermore there are trips to bravura spas and health resorts that lead to more declination on the average saving per month and year. People wastefully spend their money visiting these resorts instead of simply being precautious and having a healthy eating and living routines. If frugality is kept under mind then the leisure time should be spend on something productive or on hobbies and PRADHAN 2 interests that does not hamper the savings. Loretta claims that she spent her two month’s salary and three month’s saving on a single family vacation trip. These kind of extravagant vacations and profligate

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