Saving

When someone says “I saved 100 bucks” they can mean two drastically different things:

  1. I just put $100 in an account. My net worth has increased by $100.
  2. I just bought a $200 item for $100. My net worth has decreased by $100.

I prefer definition #1. It seems to me that #2 is really spending, which is the opposite of saving.

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Creative Commons Attribution-NonCommercial 3.0 United States