Are people really having the wrong concept of savings? - page 2.

rat03gopoh

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Quote from: Obari on February 20, 2023, 06:55:46 AM

"Saving is the portion of income not spent on current expenditures. In other words, it is the money set aside for future use and not spent immediately."
The word "use"(spend) is the key word of concentration because it seems people talk so much of savings as if one isn't supposed to use their saving even until death and I began to wonder what the purpose of saving really is.

Nope, your interpretation is too limited. Why not continue with the next part of the article ^[1]?

Quote

Why should we save money? Saving can be used to accomplish objectives in the short-term such as buying a mobile phone, or in the longer run such as continuing to study, or else buying a car or a house.

Saving money can also help us cover unexpected expenses, such as an illness, replace an appliance that cannot be repaired or make an emergency trip.

Actually the source of the article detailing the concept of savings is better than you think. Adding mine, setting savings to be flexible won't hurt you financially. I control my money, not the other way around.

1. http://www.bcra.gob.ar/BCRAyVos/Aprendiendo-a-ahorrar-que-es-el-ahorro-i.asp

Cryptock

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Quote from: Ngewex Yuk on March 05, 2023, 09:36:58 AM

If we save money in the bank then we get annual interest at this time of around 10%, of course 10% is not net interest but there are still deductions from fees, taxes and so on and if collected then no more than 5% per year, of course this is the wrong concept if we hoping to get rich from bank savings, let's change to the pattern that is currently trending, namely cryptocurrencies.

People are well aware what is saving and what's the concept of saving.
Most of the people manages their finances well - unlike me - they invest and save alot - but people like me who live paycheck to paycheck are always thinking to save and they get nothing in return

Ngewex Yuk

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If we save money in the bank then we get annual interest at this time of around 10%, of course 10% is not net interest but there are still deductions from fees, taxes and so on and if collected then no more than 5% per year, of course this is the wrong concept if we hoping to get rich from bank savings, let's change to the pattern that is currently trending, namely cryptocurrencies.

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Quote from: stadus on March 05, 2023, 12:22:44 AM

But for those who have the knowledge of investing or those who are afraid to take risks, they'll prefer to keep their savings in the banks not knowing that they never value 100% years from now. But those who aim to grow their money will never save more but instead, use their money for investments that will able to secure their finances in the future.

Besides, we have these life visions;
- short-term (those who are just thinking for tomorrow)
- long-term ( those whi are thinking about the future)

It seems to me that now few people keep money in the bank, at least in my country this is the case. Those who have at least a basic financial education understand how stupid it is to keep money in the bank. There are many reasons for this, from inflation to the risk of never seeing them again. Investing is very good, but it requires a lot of knowledge and, oddly enough, the courage to take responsibility for your money.

Cryptock

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Quote from: stadus on March 05, 2023, 12:22:44 AM

Quote from: 19Nov16 on March 04, 2023, 04:29:53 AM

Most people have the wrong savings concept, and usually they only rely on banks to save money and hope to get interest, but at this time the economy is difficult and if we keep money in banks then only get interest around 6% per year, if inflation is 4% then we Only get 2% per year, and from now on, let us turn a system like this into an investment.

But for those who have the knowledge of investing or those who are afraid to take risks, they'll prefer to keep their savings in the banks not knowing that they never value 100% years from now. But those who aim to grow their money will never save more but instead, use their money for investments that will able to secure their finances in the future.

Besides, we have these life visions;
- short-term (those who are just thinking for tomorrow)
- long-term ( those whi are thinking about the future)

I think it is difficult to gauge what is the concept of saving for the people sometime the wrong concept is the right concept.
For people who think house is a saving. But what after natural disaster. For some people money is the saving but what during the economic crisis.
Life is so unpredictable. And changing according to the time is a great idea.

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Quote from: 19Nov16 on March 04, 2023, 04:29:53 AM

Most people have the wrong savings concept, and usually they only rely on banks to save money and hope to get interest, but at this time the economy is difficult and if we keep money in banks then only get interest around 6% per year, if inflation is 4% then we Only get 2% per year, and from now on, let us turn a system like this into an investment.

But for those who have the knowledge of investing or those who are afraid to take risks, they'll prefer to keep their savings in the banks not knowing that they never value 100% years from now. But those who aim to grow their money will never save more but instead, use their money for investments that will able to secure their finances in the future.

Besides, we have these life visions;
- short-term (those who are just thinking for tomorrow)
- long-term ( those whi are thinking about the future)

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Quote from: Obari on February 20, 2023, 06:55:46 AM

"Are people really having the wrong concept of savings?" This topic and question was triggered earlier this morning after writing on two separate threads where it seems people are already misunderstanding the concept of saving
saving according to Google search from Banco Central de la República Argentina |
"Saving is the portion of income not spent on current expenditures. In other words, it is the money set aside for future use and not spent immediately."
The word "use"(spend) is the key word of concentration because it seems people talk so much of savings as if one isn't supposed to use their saving even until death and I began to wonder what the purpose of saving really is.
We ought to save money so money can save us and some also say that we ought to save for raining days and we should know that our raining days might differ and one should be free to use their savings and not feel they're doing something wrong when using their hard earned savings.
What's your concept of savings?

no people know what does saving mean. They are not taking it wrong. Just they are not serious about being financial independent.
or they like getting loans from people - and they like partying on other people money.

19Nov16

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Most people have the wrong savings concept, and usually they only rely on banks to save money and hope to get interest, but at this time the economy is difficult and if we keep money in banks then only get interest around 6% per year, if inflation is 4% then we Only get 2% per year, and from now on, let us turn a system like this into an investment.

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Quote from: armanda90 on March 03, 2023, 05:44:16 AM

Some people mindset about saving have been removed and changed it with investing, many people have been smart nowadays and there are not any old tradition concept of saving money. But have little mistake when using saving concept in the bank trough interest and get few percentage for several years later and they were forget about fiat inflation.

Its seems difference when many people change their mindset not use money or fiat for saving due inflation values few years later and replacing with investment or gold assets for their saving.

Savings are needed to create some kind of start-up capital for investment, otherwise it will be impossible. In order to start investing, you first need to learn how to save money and create savings.

A bank deposit is already a thing of the past, those who follow the inflation rate will understand this, but they will be used by people who do not know where to invest money, who are afraid to buy cryptocurrencies due to high risks, or those who simply do not know how to do it.

For such people, it remains only to save fiat and although it is clear that inflation will reduce their purchasing power, but it will still be the money to which they have access, is also not the worst option.

armanda90

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Some people mindset about saving have been removed and changed it with investing, many people have been smart nowadays and there are not any old tradition concept of saving money. But have little mistake when using saving concept in the bank trough interest and get few percentage for several years later and they were forget about fiat inflation.

Its seems difference when many people change their mindset not use money or fiat for saving due inflation values few years later and replacing with investment or gold assets for their saving.

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Quote from: Botnake on February 24, 2023, 03:26:14 PM

For me, as long as you save for future use, then it’s never been wrong especially that you are thinking that today’s life might be somehow different in the future as some uncertain events might be surprisingly occur that would trigger our finances. That’s why whatever you do as long as saving is concerned, then it’s always a positive trait that will help us benefit in the future.

Savings is a good habit and having money ready in case of emergency is an anxiety reducing factor when facing the odds. Many of the current younger generation do not understand this simply because they have not faced such things and probably their parents have handled it for them.

There is a scope to save money in every income cycle and this should be done by everyone.

Bitcoin itself has the idea of hodl till you can't. So it should be mostly saved and used as little as possible if you already have a fiat income.

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Quote from: Bushdark on February 23, 2023, 06:58:36 PM

Saving is what we should be after now because the way recession and things are going, we might have one or two problems that would need capital to establish but if we have savings, we will not need to go to bank or meet frie.d to get loans to get our problem or business ideas settled. Savings had really helped me and I know some other persons that are millionaires now to help them develop and fund the project they are doing. Even though the fund may not be upto what is need at least it will go a long way to help settle few things on the table. Savings can safe life and remove reproach from us if we know what we are doing.

Not only are we saving for the recession or starting to save because the recession is hitting us hard, but saving should be done even when we're perfectly fine with our lives. Because saving is for the future, for emergencies, and life is full of surprises.

Saving should take precedence over investment, investment can yield good returns but there is no guarantee that investment will always yield a return. Saving doesn't add to our wealth, but it does secure us in many emergencies.

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Quote from: Obari on February 20, 2023, 06:55:46 AM

"Are people really having the wrong concept of savings?" This topic and question was triggered earlier this morning after writing on two separate threads where it seems people are already misunderstanding the concept of saving
saving according to Google search from Banco Central de la República Argentina |
"Saving is the portion of income not spent on current expenditures. In other words, it is the money set aside for future use and not spent immediately."
The word "use"(spend) is the key word of concentration because it seems people talk so much of savings as if one isn't supposed to use their saving even until death and I began to wonder what the purpose of saving really is.
We ought to save money so money can save us and some also say that we ought to save for raining days and we should know that our raining days might differ and one should be free to use their savings and not feel they're doing something wrong when using their hard earned savings.
What's your concept of savings?

No one knows the time or season inwhich he'll depart from the surface of this Earth, so saving and dying on it doesn't mean you didn't save rightly, people have different reasons for saving and perhaps at the time of one's departure, it wasn't time to open up the savings.

But I'll like to ask, if you're saving definitely for a purpose and you're struck with a health issue, is it advisable to open up the savings??

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Quote from: Charles-Tim on February 20, 2023, 07:25:57 AM

I do not think anyone should get the purpose of saving wrongly. People save for many reasons, like for nvestment, to tackle emergencies etc. You can even save money because you want to buy something that year or later and you do not want to go for installmental payment which will require paying more over certain period of time than buying at once.

Saving in the first place is never a wrong concept. People save for different reasons, so whatever it is, knowing it will be beneficial and useful in the future, then it’s always right and create a positive mindset. You could save to buy your dream car, or provide education insurance for your children, or build a business, it’s always the right thing to save because if you won’t do that, you will have higher chances to experience financial struggles in the future.

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Quote from: lienfaye on February 23, 2023, 10:39:33 PM

We save for different reasons, for the education of our kids, in times we already have health issues (since we're not forever healthy) or for retirement. In short we're saving to be prepared for the future but it doesn't mean you can't spend it at the current time, because we have different reasoning if we opted to save for long term or to use if there's an emergency.

But as long as it serves its purpose on why we save in the first place, then you don't have to question if you follow the concept of saving. What matter is you have something to rely on during rainy days.

I agree, the main reason why people should spend must be for things that are life or death situations. I have spent my coins on medical bills too many times in my life to know this is to be true, an unfortunate thing, but unfortunately my family is not an healthy one, too many people get sick all the time, it is genetics I suppose, both my and my wives family keep getting sick and that is mainly due to not being rich enough, when you are not rich enough you do not care for your health and go to doctors when you are young, which causes troubles when you are older so we have to deal with it but bitcoin helped me a lot.

Sure you can spoil yourself here and there too, I aim at buying PS5 one day, totally useless way of spending money, but I might do it to finally be happy, I deserve to be happy once in a while and spoil myself.

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Quote from: Charles-Tim on February 20, 2023, 07:25:57 AM

I do not think anyone should get the purpose of saving wrongly. People save for many reasons, like for nvestment, to tackle emergencies etc. You can even save money because you want to buy something that year or later and you do not want to go for installmental payment which will require paying more over certain period of time than buying at once.

For me, as long as you save for future use, then it’s never been wrong especially that you are thinking that today’s life might be somehow different in the future as some uncertain events might be surprisingly occur that would trigger our finances. That’s why whatever you do as long as saving is concerned, then it’s always a positive trait that will help us benefit in the future.

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Quote from: Obari on February 24, 2023, 12:00:16 AM

Quote from: lovesmayfamilis on February 20, 2023, 07:29:08 AM

I assume savings as a competent distribution of their funds, buying the necessary things without unnecessary squandering, but also without depriving yourself of much. In itself, saving for the sake of the economy means little, there must be a purpose for which the money will be spent in the future, or this deferred money can serve as a means of insurance in case of unforeseen circumstances.

Well said senior and I love the way you took out your time to explain this because it really shows you got the concept right.
Basically from the both threads which I read and I've been trying to search for it so I can add up the link but to no avail, spoke so much of saving as if one isn't expected to use their savings and I wasn't satisfied with that and a whole lot of people also write in affirmation to what those OPs wrote and that was why I had to create this thread to get the opinion of others without siting any situation regarding savings.

Your thread is quite interesting and this will allow people to see different reasons why they have to keep saving. Anything can happen just like COVID-19 hit us u expectedly and many people loses there jobs because it. Saving is an important tools for everyone of us even though you are not an entrepreneur. We save for the time of necessity or emergency that would need our funds. This will make us to meet people for aim when we can easily go for our savings and use part of it solve our problems. Our savings would be according to how we earn so it will not affect our bills payments.

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Quote from: fuer44 on February 22, 2023, 10:10:03 PM

I also think like that, make a deposit at the bank within a certain period of time. Even a deposit also gives us a few percent of the profits from the money we deposit, but the majority of people in the village prefer to just keep it in an account because their goal is to saving, not to get a percentage. Another consideration, they keep it in an account because they can still access it if there is an emergency need.

That type of saving, even though would give you a small amount, would allow you to grow your wealth and how you should be approaching the current world. The only way of getting richer is to make your money work for you, that is the ideal end level of any rich person. If you have enough money that your interest makes you enough to live off, then you are rich enough to not work and be considered rich.

Of course I highly suggest keep working, like if 1k per month is enough, wait at least you make 3k per month, that way you would be guaranteed to grow your portfolio while also still living without working. Putting it on regular account makes no sense because of this, no matter how small, always invest and earn more.

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Quote from: Vaculin on February 24, 2023, 03:17:09 AM

Quote from: Razmirraz on February 23, 2023, 10:22:07 PM

Quote from: browsiek on February 20, 2023, 07:40:51 AM

Saving is a self-choice where everyone wants to achieve the goals they want by setting aside a portion of their income. There is a saying that "little by little becomes a hill". the statement is in line with the word SAVING, there is nothing wrong when someone wants to have savings because the money can save one day and make their wishes come true.

It could be that now you don't have problems with finances, but it's not impossible that things will change. Saving is one of the most effective ways of preventing debt. There are so many unexpected events that might happen in a person's life, such as illness, job loss, accidents or other disasters that one never thought of before.
When you have considered the worst possibility that can absorb more money, it means you are aware of how important saving is. "little by little becomes a hill", even with a small nominal, but if it is done consistently it will definitely be a lot and very useful when needed.

I would agree to this. As long as you reserve some extra funds to save regardless of the amount, that will become huge in the future and will be very useful whenever unforeseen expenses start to arise. And while you are in the process of saving, you can also try to invest using some of your extra money, at least when it succeeds, you will have more money to save and more capital to diversify your investment. As much as saving is essential, investing at the same time is also beneficial by taking advantage whatever opportunity that comes.

Investing and saving are two of the most important things anyone should have. However, I still see many people who think that saving is a waste because it just makes their money lose value over time and they just invest. Investing is just as important as saving, but it's not a good idea without any savings. For example, in the economic crisis of 2022 and our investments are losing, if we have no savings and we have to cut loss our investment. It was a catastrophic failure.

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Quote from: Finestream on February 20, 2023, 04:59:23 PM

Quote from: Charles-Tim on February 20, 2023, 07:25:57 AM

I do not think anyone should get the purpose of saving wrongly. People save for many reasons, like for nvestment, to tackle emergencies etc. You can even save money because you want to buy something that year or later and you do not want to go for installmental payment which will require paying more over certain period of time than buying at once.

As much as you want to save, then most probably the reason would be to save so that you will have something to benefit in the future. Whether it’s for your plan vacation, establish your own business, or build your dream house, whatever it is saving will always be good to be used in the future. So I don’t think too anyone saves for it’s wrong concept, we all save regardless of what personal reasons we have.

The purpose of savings is just to make the future better and easy, the essence of saving is to later on spend money on the things which we desire. People don't save because they just feel like to save money forever and not to be spent, savings is just like a backup for the future which will be definitely be used for future purpose. Nobody save for wrong reasons, savings is just important as far as money is coming as income.

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