There’s an old British saying that goes: “Penny wise, pound foolish.”


ALSO READ: Cutting Down On Big Summer Expenses


No, the saying doesn’t mean that those who have less money are wiser. If that were true, I’d be a very smart man.

Rather, it refers to someone who goes to great lengths to save some money (a few pennies) now, but ends up losing more money (many British pounds) later on.

Here’s an example that I’m sure hits close to home for most: Buying the least expensive clothes you can find isn’t always the smartest decision. Digging through that pile of cheap underwear may save you a few bucks today. But having toreplace your hole-ridden drawers every other week ends up costing you more money than buying quality undies the first time around. Penny wise, pound foolish.

*** SPECIAL ALERT -- May 10, 2020 -- Motley Fool Stock Picks On FIRE! ****

The recent Motley Fool stocks picks, even with this COVID crisis, are STILL performing well and beating the SP500! Here are some of their most recent picks and their performance:
  • Shopify (SHOP) – April 2, 2020 pick and it is already up 90%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 16%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 17%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 77% compared to the SP500 -12% so it is ahead of the market by 89%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 4%
  • Netflix (NFLX) picked November 21, 2019 and it is up 37%
  • Trade Desk (TTD) picked November 11, 2019 and up 50%
  • Zoom Video originally picked Oct 3 and it is up 87%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 20%
  • Zoom was also picked October 3, 2019 and it is up 95% since then.
The average stock they've recommended is up a life-changing 346% - more than 4X the return of the S&P 500 ! Now, no one can guarantee that every pick in Stock Advisor will have the same mind-blowing returns as Netflix and Disney. But you sure don't want to risk missing out.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

Hurry! Order now so you will get their next stock pick! Here is the expected schedule of release dates for their stock picks...:

  • June 4 - Tom's New Recommendation
  • June 11 - Tom's New Best Buys Now
  • June 18 - David's New Recommendation
  • June 25 - David New Best Buys Now

CLICK HERE to get The Motley Fool's Stock Picks for just $99 per Year! 

Now let’s look at this on a way bigger scale: Governments have a knack for being penny wise, pound foolish. For example, politicians don’t always make budget cuts with a long term view. In politics, getting re-elected in the short term often clouds the long term implications. If we all agree that the nation’s youth are our future, then budget cuts on education are penny wise, pound foolish. Yes, you may be saving taxpayers some money in the short term, but education is an investment that will only begin to pay off in the long term.

As you can see, this saying can teach us a lot about how we make decisions with our own money, as well as on the national scale. It’s not to say that you shouldn’t try to cut costs and save money. Just be smart about it and think of the future consequences.

What are some examples of being penny wise, pound foolish that you can think of? Leave them in the comment section below!


INVESTING TIP #27-- HOW TO GET FREE STOCK!

Get Up To $1,000 in Free Stock with Robinhood--the Commission-Free Brokerage!

Open a new account and receive one free stock valued at up to $500! Then, once your account is open, get more free stocks (value from $5 to $500) for each friend, family, person you refer! USE THIS LINK to get started with Robinhood!

2 COMMENTS

LEAVE A REPLY