Are You a Power Saver? Here are 5 Reasons Why You Should Be One
This has nothing to do with a device to manage your electricity in your house. By our definition, a power saver here is one who is constantly looking for ways to save financially.
Of course, this simple definition is not as clear as one would think. Does a power saver have an abundance mindset or a lack mindset?
Is there a difference between frugality and being a cheapskate? How about saving money based on how you buy things? Then is a fanatical person who budgets actually a power saver?
Let’s find out.
First of all, let’s look at some terms. If you are frugal, this does not necessarily mean you are a cheapskate. Simply stated, a cheapskate will tend to spend less at the point of sale.
The price point is all that matters. However, a frugal person will buy looking at value first, price second.
For example, does it make sense to buy three cheap running shoes that may not be the best for your feet or one high-quality well-made running shoe over the course of a year?
Are you a power saver? Let’s see.
- A true power saver will go with a value, not with price. They value the quality of the shoe and the health of their feet. Same is true when it comes to even bigger purchases. In some cases, it may just be a compromise between value and price. In short, a power saver will be frugal (value) over being a cheapskate (price).
- A true power saver will look at the durability of something and not just try to get by. In other words, they are penny wise but not pound cheap.
- A true power saver values not only their time but the time of others. They will seek ways to be efficient with their time and never abuse the time of others. It is the basic golden rule. They understand that time is money and will not waste either to the best of their ability.
- A true power saver will operate from a sense of abundance and good stewardship of the resources available to them.There are basically two ways to look at this world that we live in. Is it truly a universe of abundance or lack? A non-power saver will operate from a sense of scarcity and protectionism.
- A true power saver also sees the value of calculated investing of resources, time and energy for a greater return. However, a non-power saver will try to conserve the little that they have. Basically, this lack mentality creates a lack of saving in the long haul. The reason for this is because various risks are not taken into account. Inflation risk is one of them.
They will invest as much as possible into a diversified investment over the long term, not with all of their money, but some of it. The non-power saver will consider that is too risky and loose out because the purchasing power of their little bit of money lost value over time.
As you can see, the question of being a power saver has to be answered with more factors than just trying to save time and money. They know and understand value investing in the form of quality goods, quality time and quality investments.
I trust that this little article helped you understand more about true saving and exposed the counter fit of a false saving.