Mon

06

Feb

2017

Saving is Investing

 

Last month, price of forever stamp was raised to 49 cents from 47 cents.  I wonder did you buy stamps before this raise in price?  I did buy some stamps for Koloa Jodo Mission  but now I regret I didn't buy more. 

 

As you know, the value of forever stamp will never change even though its price may go up when you buy it in the future. 

This means we can definitely save money when forever stamp is cheaper.  Of course, amount of saving money is depend on how many stamps you use in the future.  So you might think this raise of 2 cents is very small and it won't affect much when you buy only a small amount.   However, the more you need to use forever stamp, just "2 cents" raise can become bigger and bigger. 

For example,

 

Number of Forever stamp

47 cents/Stamp

(Before raise)

Price

49 cents/Stamp

(After raise)

Price

Difference

10

$4.7

$4.9

20 cents

100

$47

$49

$2

1000

$470

$490

$20

10000

$4700

$4900

$200

100000

$47000

$49000

$2000

 

 

 

Of course, number of over 10000 stamps seem to be so huge and may not be realistic to buy these numbers of stamp at one time.   But if you are using "forever stamp" regularly, these numbers will come eventually.  So if you need to use about 200 stamps every month, consumption of stamps will be2400 stamps annually. 

 

 

 

Year

Usage of forever stamp

(200 /a month)

1 year

2400

2 years

4800

3 years

7200

4 years

9600

5 years

12000

 

 

 

So if I was able to buy 12000 stamps before this raise, I could have save at least $240 for the stamp usage in 5 years.  That's actually lots of saving as compared to the bank's interest.  Currently interest rate for bank CD is almost nothing.   Even though you deposit money for longer period like 5 years, it won't make much money.  

 

We tend to think saving and earning are two different things and we like more earning than saving.  However if we can be mindful of the meaning of saving, saving and earning can be a same thing as a whole. 

So  buying cheaper forever stamps should be much better investment if you use stamps regularly.  The rate of this raise of 2 cents for 47 cents is actually 4.2%!!!   This means if you were able to buy cheaper forever stamp, you could save 4.2% of the price...which should be same as earning 4.2% interest.

 

Yes, saving is investing.  I wrote this for the next time.

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