“Time is money.” “A penny saved is a penny earned.” “Money doesn’t grow on trees.” There are tons of common maxims and fortune cookie-style phrases about money in our society that are often internalized as gospel truths. But how truthful are they, really? On this episode of How To Money, Matt and Joel take a look at a few of the most common money phrases to find out how much gold – and how much dross – they really have. “We want to make sure you are not getting your financial advice from a fortune cookie!” Matt jokes, because when they apply some critical thinking, they find that some of these sayings are dead-on – while others only lead to a toxic and insecure relationship with money.
“A penny saved is a penny earned” is still a solid piece of advice, even centuries after Benjamin Franklin first wrote it; the money we earn that we don’t spend creates a meaningful margin in our lives that can lead to more comfort and freedom. But while living frugally is great, it won’t get you where you want to be financially. “Cash is king” isn’t untrue, but it doesn’t tell the whole story, either: While it’s important to have some liquidity in order to handle emergency expenses or jump on an investment opportunity, it’s not great to have too much cash just sitting around in the bank. If you’re too married to “cash is king,” you might not be taking advantage of all the benefits investing in the stock market has to offer. Money doesn’t grow on trees, but with compounding interest on investments, it’s almost as if you do grow a money tree that provides even when you don’t work.
“Penny wise and pound foolish” is a British saying they find a lot of truth in; many of us are guilty of this one. For example, Matt says he’s often reluctant to spend money on regular visits to the doctor and dentist. He’s generally healthy, so it just feels like a waste of time and money. But he might be setting himself up to spend a lot more money down the road on unexpected health issues he could have avoided if he’d kept up his regular appointments. It’s important not to be so focused on the small stuff that you lose sight of the big picture. Hear more common money phrases, including their least favorite of them all, dissected and debunked on this episode of How To Money.
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