Remember that the squirrel used a "scatter hoarding" technique. The savings gathered and put away for later use were placed in different places. This scatter technique protects the squirrel's savings in the event a hoard is lost. This is a very important aspect of the "hoarding mechanism" and "Diamond Rule #2: Never save all of your money in one place".
Some of those places were tapped into or "activated" for use while others were never touched. The ones that were activated benefited the squirrel in its lifetime. The ones that were never gathered, however; resulted in these seeds and nuts growing into more trees. In the end this created more "potential" by resulting in trees growing into forests; which subsequently will produce more food to be gathered for generations to come. These "un-activated" hoards of food can be likened to interest bearing savings vehicles. These savings never get touched. They sit in their respective "holes" and grow. They don't grow into wealth, they grow into increased potential! These are the savings that benefit future generations.
The activated savings (savings designed to be utilized in the near future) are designed to benefit you in this lifetime. You will end up living off of these savings in one way or another, or you will also have the option of "planting" those seeds to grow more potential for yourself and/or future generations.
The bear on the other hand saves by "conserving" what it has already "consumed" or eaten (not to be confused with the concept of consuming in the economic sense). This consumption can be likened to "income". The bear is going to spend the least amount of energy (income) that it can while it is in hibernation. It has the ability to wake up and be fully active if the need arises, but the goal is always to save as much energy as possible. This type of saving mechanism is what I like to call "avoidance". More specifically we can dub this as "cost avoidance". Saving energy (avoiding spending) puts one in the position to be prepared when it is time for that energy to be "activated".
Both of these mechanisms involve "storing" and both of them fit the definition of generating "potential". One involves gathering potential and the other conserving potential. One should use both of these savings mechanisms to implement a wealth building strategy.
NOTE: Savings Is Savings! Having $10 in your pocket and paying $10 less on a purchase is essentially exactly the same. Savings is a "net effect". The "net effect" in the above example is $10 "SAVED". In either situation you still have $10 more than if you did not hoard it or conserve it!
We will discuss more details regarding the dynamics of "hoarding" in the next article, "The Squirrel and The Bear: Part III."
Jay Davis is a seasoned Strategic Planner and Project Manager with an industry focus on Economic Development and Commerce. He is an active author who is attempting to break the world record for "Most Published Author" by attempting to publish 1404 works in the next 13 years.
Jay is also an active champion for social and economic reform. He is the founder and developer of the Power In Numbers Economic Development Initiative (Power In Commerce) and Co-developer of the Power In Numbers Network. He is the CEO/President of the facilitators of these platforms. These companies are suitably named Power In Numbers and The Power In Numbers Flagship Company.
Mr. Davis' latest venture (Power In Numbers Flagship Company) can be followed at: http://www.powerofhouston.org
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