not to get picky about things, but mr. lincoln was a little wrong with his historic statement: "a penny saved is a penny earned."

due to the time-value of money, a penny saved is actually better than a penny earned. just consider the different timing of these cashflows.

when a person or firm saves money, the timing is considered immediate. there is no lag between saving money and its creation of value.

however, when money is earned, an accounts receivable is created. the payment is deferred -- time lapses between when the good or service is provided, and when the payment occures. this accounts receivable will diminish in value due to inflationary factors. in the us, this has historically averaged around 3% (depending on one's source of measurement).