The marketing departments of the retail industry have to be considered the masters of how to (mis-)use language to put a positive spin on what is really a negative event. Consider this typical message that you see everywhere these days in some form or fashion:
"LCD TV for only USD1,999. Pay USD1,899 and save an additional USD100 if you buy this TV today".
What's wrong with this message, it looks awfully positive, you think? Let's take a closer look.
Let's assume you buy this item today. What really happens?
First and foremost, you spend 1,899 bucks of your hard earned money! But is that the message they want you to remember? No. The message they want you to remember is that you "saved" 100 bucks, not that you spend 1,899.
But, do you really "save"? Only, if you actually go ahead and put what you "save" into savings! That can be an interest-bearing savings account, your retirement account (which I hope you have), invest it in mutual funds or stock, etc. Now, who really does that? If my unscientific observations are any indication, pretty much no one.
The next time you hear someone tell you that you save by buying an item, turn around and tell them that first and foremost you are spending a significant amount of money and not technically saving anything, unless you take that discount amount and stash it away somewhere where it earns you interest or capital gains.
It's the retail industry's positive spin that you save money, when in reality you are spending money. Think a little bit about that before you hand the credit card over or press the "buy" button this Christmas season.
