One of the biggest mistakes people make in saving money is stepping over dollars to chase pennies.  This happens any time you put so much time and energy into cost-cutting tactics to save a few cents, that you ignore the greater opportunities to make money.

https://www.youtube.com/watch?v=EG9TtjM2wHE

The reason this is so attractive is that it takes less mental energy to remove something than it does to add. However, the glamour stops there, because you can’t shrink your way to wealth. 

For your efforts to result in the freedom you crave, you must stay in the right mindset of abundance, creation, innovation, and production.

Two Mindsets About Saving Money

You want to save more in your business and personal life.  But when it comes to saving money, there are two methods.  And these camps are about as opposite as can be.

Table of contentsTwo Mindsets About Saving MoneyThe ProcrastinatorsThe Misers: Experts in Stepping Over Dollars to Chase PenniesLife and Business Examples of Stepping Over Dollars to Chase PenniesHow to Escape the Naivety of the Procrastinator, Without Falling into the Trap of the MiserIn Today’s ConversationWhere Your Mindset About Spending and Saving Fits in the Cash Flow SystemWhy Most Money-Saving Tactics Are A Waste of TimeYou Get What You Focus OnSteward of All Your ResourcesTime is Your Most Valuable CommodityProduction = Service = Exchange = VelocityWhat Is Wealth?How Do You Create Dollars Instead of Stepping Over Dollars and Chasing Pennies?Stop Stepping Over Dollars to Chase PenniesBook a Call to Find Out Your Next Step to Time and Money Freedom

The Procrastinators

On one extreme, there are the procrastinators.  (Newsflash: if you’re reading this article, this probably isn’t you.)

This is the mindset of the person who lives it up today, overspending and overleveraging but attempting to outrun the mess by making more money.  They think that higher income will solve all their problems. 

They’re partially right.  If they did make more money, they could build savings.  However, Parkinson’s Law takes over and finds a way to spend the new income before they have a chance to save it. 

Unfortunately, this strategy comes with some pretty hefty baggage.  Stress and worry become constant adversaries when you’re not being honest with yourself. Instead of creating solid wealth habits, those who follow this method continually spend tomorrow fixing today’s mistakes.

The Misers: Experts in Stepping Over Dollars to Chase Pennies

In the other camp, we have the misers, the experts in stepping over dollars to chase pennies.

These people try to spend as little as possible.  In fact, they seem to think spending nothing at all is akin to godliness or some kind of financial nirvana.  They scrutinize every decision, always opting for the cheapest option.

The end game of this mindset isn’t pretty either.  Imagine the miser invented a way to live with zero expense.  What then? They may have all the money in the world, but they'd be stunted in their ability to enjoy life.

Life and Business Examples of Stepping Over Dollars to Chase Pennies

The misers will drive six miles out of the way to save two cents per gallon on gasoline.  They’ll fail to hire a needed accountant, administrative assistant, marketing strategist, or business coach because they “can’t afford to pay someone else to do it.”  They buy from the cheapest suppliers and brag about how little they spend.

How do I know?  I’m embarrassed to admit that I used to live here. 

About 7 years ago, right as I was starting out in business, I attended an extreme couponing class.  I then spent several months zealously clipping and organizing coupons in a thick binder full of baseball card holders.  I then planned my meals and weekly shopping around the coupons and sales and rejoiced when my bill was smaller than my savings. 

The problem was, I filled the pantry and closets with huge stashes of toothpaste and Wor...