I was having a conversation this morning with someone about in-laws, technology, advice and just kinda shooting the breeze when we touched on the topic of extended warranties.
I mentioned the post I read over at Five Cent Nickel about creating your own extended warranties where you essentially create a separate savings account, put money you would normally pay for an extended warranty into your own account and if 1/10 things you normally would have purchased an extended warranty for breaks, you can pay for that yourself and still save a good amount because you didn’t buy the warranty for all the things that didn’t break.
I got a somewhat puzzling response. My buddy said to me, “Well, you could just not buy the warranty, not put the money into savings and then you wouldn’t have spent that money in either way”.
This made it sound like he was considering putting money into savings an expense…
I had to stop and think about that a bit, are our savings accounts expenses?
Thinking about this more and more, he is not the first person that has said something like this before. I recall another situation I was talking with someone about how I have multiple accounts and move money from my main account to external accounts so that I don’t touch the money. They acted like moving the money out of the main account was as bad as just spending it.
I know I am not the only one around here that moves money from a landing account to an external account, so it won’t be spent and thus can be saved with more dedication, out of sight, out of mind, but I have never considered this an expense.
I can honestly say I have never lived paycheck to paycheck meaning I have never had to pay out everything that came in but I imagine that living paycheck to paycheck may give someone this kind of attitude towards saving. The money that could be spent on paying things like bills is instead tucked away and not used.
Even more interesting is that this friend of mine makes a heck of a lot more money than I do.
Have you ever run accross this mentality, that saving is an expense to be avoided?
Image by pixeljones br>
Tags: attitude, dedication, extended warranties, extended warranty, external accounts, first person, heck, living paycheck to paycheck, move money, nickel, out of sight, paycheck to paycheck, savings accounts, shooting the breeze, t break, t touch, technology advice, warranty