Pond's Laws on Spending and Saving

On Spending

Pond’s Law of Pocket Cash
Cash in your wallet will be spent twice as fast as you intend. For example, if you withdraw enough money from the ATM on Monday to last a week, it will be spend by Wednesday.

Pond’s Law of Yard Sales
Everything that’s bought at a yard sale eventually ends up in the purchasers’ yard sales.

Pond’s Law of Markdowns
The more an item is marked down, the more someone will shift their feelings from wanting the item to needing the item. (At 60 percent off, you will not be able to sleep until you’re bought it.)

Pond’s Law of Profligacy
The longer you think about some nonessential luxury item, the more you will convince yourself that you absolutely, positively need to have it. Now.

Pond’s Law of Madison Avenue
Our culture teaches us that spending is good and living beneath your means is a crime against society.

Pond’s Law of Sales
Nothing ever goes on sale because too many people want to buy the product.

Pond’s Law of Raises
Spending increases in anticipation of a raise at a rate that exceeds the amount of the raise eventually received.

Pond’s Law of Air Fare Insanity
No matter how hard you try to obtain the absolute lowest airfare, the person sitting next to you on the plane paid less.

Pond’s Law of Spending Restraint
You know you’ve got your financial act together if you spend the same percentage of your income between Thanksgiving and New Year’s as you do between New Year’s and Thanksgiving.

Pond’s Law of the Divine Life
To spend is human, but to save is divine.

Pond’s Law of the Complete Life
Your life isn’t complete until you’ve spent all your money.

On Credit Cards

Pond’s Law of Credit Card Overload
If you have a good credit history, and you accept every credit card offer you receive in the mail, within two years you will build up enough credit to pay off the entire federal debt.

Pond’s Law of Credit Card Debt
It takes ten times longer to pay off credit card debt than it takes to run up the debt in the first place.

Pond’s Law of Student Credit Card Limits
A college student’s credit card borrowing limit will be maxed out in a number of days equal to the cube root of the dollar limit. For example, a $1,000 credit limit will be reached in 10 days.

On Saving

Pond’s Law of Financial Success
Financial success is less dependent on how much you earn than it is on how much you save.

Pond’s Copper Rule
A penny saved is a penny—plus interest—earned.