The Value Of A Dollar

When is a dollar not a dollar? A dollar is not a dollar when you earn it.

george callens

I have a couple of questions for you. 1. When is a dollar not a dollar? 2. When is a dollar really a dollar?

A dollar is NOT a dollar when you earn it. Why is that? Because, at a minimum, taxes will be deducted from that dollar leaving you with only 60, 70, 80 cents (depends on where you live and what your tax rate is).

100 US dollar banknotes

But it gets even worse…if that dollar was generated by products you sold, you need to deduct the cost of goods sold, advertising etc. from that dollar. You’re left with just pennies!

When Is A Dollar Really A dollar?

Is a dollar is a really a dollar when you save it? Maybe. (Let’s keep things simple and not talk about interest and taxes on interest etc. We’ll just talk about saving a dollar.)

Why did I say “maybe” when I talked about saving a dollar above? The reason is because most people don’t know how to save a dollar!

Let’s use filling your car with gas as an example. In the mid 2000s (2013, 2014 etc.) gasoline in the United States (depending where you live) was priced at $3.50 to $4.50 (or more) per gallon. The most I paid was $3.50 so I use that as the base value for my calculations.

Right now, where I live, it’s priced at $1.89 per gallon. That’s, at a minimum, a potential savings of $1.61 a gallon! ($3.50 – $1.89 = $1.61)

The question is, “Did you save that $1.61”?

My aunt came over today and told me she filled her car up and saved $20. I floored her when I told her she didn’t save that money. She actually got angry. I told her if she saved $20 she should be able to show me the $20.

After all, if you told me you saved some of yesterday’s roast beef to eat for lunch today, the day after its served for dinner, you CAN SHOW ME the roast beef. Correct? That’s what saving really is.

So, if I REALLY save a dollar I should be able to show you that dollar and it’s REALLY a FULL dollar because there are not taxes or other hidden charges connected to it.

Yesterday I filled my car up with gas and I SAVED $11. I really saved it.

I can show it to you. I put $11 in an envelope in my top desk drawer. It’ll remain there until I really need it or accumulate enough to invest it. I am really saving it!

I do that every time I get a discount—I really save it. If I have a 20 cent coupon for a loaf of bread, I put 20 cents in my envelope. Here’s a picture of my actual envelope.

(Yes, I know that technically it’s not an envelope but I’ve saved more than an envelope can hold.)

How Does This Pertain To Your Business?

Through Marketing University, you discover many shortcuts, resources etc. that can save you time and money. Implement this money and time saving knowledge into your business. The time you save can be allocated to money-making activities. I know it’s a bit hard to show “time saved” but it can become visible in results, even if the result is just a few minutes to relax and recharge your battery.

Remember, when it comes to money that dollar you saved is really a dollar. The extra income you earn in additional sales and more profit per sale (using the training and tools in Marketing University) will equal a fraction of a dollar, BUT you earn it over and over again.

The sweet spot is when the profit on dollars earned are added to dollars saved!!

The dollars “saved” may be limited… but their value is 100%, and they can effectively be applied to generate more revenue, which, at least theoretically, is unlimited!

Okay, I can hear you saying you think you may be able to save some time but you can NOT save money. Your expenses are just to large or your profit percentage is just to small. That’s hogwash!

There Are Many ‘For Sure’ things You Can Do

  1. Implement time-saving features and use the “time saved” to study trainings in your AM2 member’s area.
  2. Implement the savings program I described above. With gas this cheap (and still dropping) it’s a GREAT time to do it. If you could afford to pay $4 per gallon six months ago, you can afford to set aside the difference now that gas prices have dropped. Don’t just limit this to gasoline savings—set aside savings from every aspect of your life and use that in your business.
  3. Inventory your expenses. How many can you eliminate or decrease? Are you using services you don’t need or paying to much for those you need? Armand and AM2 can help you here.
  4. Smoking? Stop smoking. Eating out? Cut back or stop, and the same goes for movies. (That may step on a few people’s toes, but you have to decide how important saving is to you.)

Do you still think you can’t save any money? Here’s an example that has likely happened to you or someone (maybe several someone’s) you know.

My niece had a good paying job and my dad was trying to get her to set money aside (had nothing to do with my suggestions above). He told her if she was making that much money she should “Pay herself first” by saving some of her salary.

She came up with unlimited reasons why she couldn’t set any money aside. She itemized things for my dad to prove she couldn’t. My dad still told her she could.

Shift forward two months. My niece is still making the same amount of money and has the same expenses, BUT she found a car she really wanted.

She traded her old car in (which her dad had given her for free so she’d have a car to drive to work) as the down payment and started making $223 per month car payments. In addition, the new car took more gas and insurance was more expensive. She somehow found the extra money when something she REALLY WANTED came along.

I’m sure, when push comes to shove, you too can reallocate income to cover something you really want, so why can’t you do it to cover a savings account?

NOTE: Saved money is set aside NOT to be hoarded but to be available and used wisely when needed. This could be for your business, to repair the washing machine, take a (reasonable) vacation, fund a retirement account, etc. or even set money aside to pass on to kids or grandkids.

Don’t Just think about it…Do It!!!

George Callens

George Callens has been on the Internet since 1996. He has worked, full time, with Armand since 2003 and is currently the Chief Operations Officer for Armand Morin Network INC.. George is also one of the founders and partners of Payblue shopping cart.

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