Topic: The savings problem - page 2. (Read 1932 times)

In life there are certainly ups and downs, therefore it is not strange if we experience events that require us to borrow money, whether from the bank or from other people. but what is clear is that this is actually tricky but also helpful. For example, if we have an accident and don't have enough savings, maybe the only way is to take out a loan, but even though this is a trap, it can help. People nowadays tend not to think about the future, so they only have money to prioritize pleasure.

having savings or an emergency fund is important, because in my opinion this can help us in the future to deal with unexpected things such as accidents that require hospital treatment costs, and of course that's not a small amount, therefore we should be able to save in addition to future also for sudden needs. What you say is true, money management is sometimes easy to say, not easy to do or implement, many people experience wasting money by buying things that are actually not that important to them, and I think they don't think about the future or save. In my opinion, recording expenses must be done, the aim is to minimize unnecessary expenses, before spending money to buy things that are not too important, you have to think about it first and consider it well.

What do you mean by the borrower will have difficulty getting a new loan after paying off the previous debt, in my opinion it is easy to get a new loan if you have collateral as tools/goods to use until the loan is paid off, some people turn loans into profitable businesses but they set strict conditions and high loan interest , so they often depend on loans and will not stop applying for more loans after they have paid off the previous loan.

Some bank workers often deceive customers who are still unclear about the terms and conditions of loans, they deliberately scare customers by providing false information as if there are new conditions that will make it difficult if they do not apply for a new loan before the final payment in full on the previous loan. We know that the target of bank workers in the field is specifically to achieve the target of new customers who apply for loans. If their performance experiences a decline due to not achieving the new loan target, they will be dismissed or their contract will not be extended.

Sometimes people like this also have a big worry about borrowing but it's not that they can't repay the loan but that they can't get the loan back after they've paid off the debt.

I've seen this situation in my neighborhood when someone who works for a bank came to people's homes to survey and collect the last few months' payments from customers who took out loans.

They try to re-offer loans on the grounds that when closing and not borrowing again then future borrowing will be complicated but this is precisely what makes conditions more complicated where ordinary people are still not too aware that in the end we have to stop activities like this so that our economic conditions become better but with the fear that they cannot borrow money again at the bank, this becomes a very difficult thing for customers to avoid.

to escape the loan trap is achievable
look over the last 5-6 months and look at the average balance you spend using a credit card. and then how much income you then put into the credit card to pay it down

now you know you are able to pay credit cards because you have been doing so.. so there was wiggle room to make repayments.... so now you know you can,.. so now just try to stop resorting to credit. by actually taking a month break from spending on anything beyond your housing costs..
and when times are good PRETEND its another bad month and ..(make it an imaginary target balance) and then start paying yourself
pretend you needed to buy something and then 'pay the balance off' by putting your income into another debit card you own treating YOUR debit card  as if its you paying down a credit card, by paying upto a budget of the imagined spend into debit card
treat yourself as the credit bank.

get upto an amount that you can use as a rescue amount. and now you dont need to use credit again, because now your debit card is your own personal credit card.. if you deplete the balance(limit) you need to pay yourself back to refil the budget. instead of a credit company the budget amount is then treated as your credit limit

..
i find it funny people are willing to have 6 credit cards in their pants pocket. but dont set up 4 debit cards giving each debit card a purpose, like bills, groceries, essentials, emergencies, living within the limits

where they at start of month divide funds up into each debit card..

if you WERE able to divide up your income to pay down credit cards.. use that skill. but putting money towards your own divisions of income into your own debit cards.
where you then live within the budgets. treating the budgets of debit cards as credit limits.. where by when using up the limit/budget. you then refill debit(like paying down credit)
its the same skill but in money positive direction instead of money negative direction

It is a loan trap. You will get difficulty in getting out of the debt cycle if you don't take an extreme action by stopping the debt/loan. In some cases, we must sell our lovely goods to pay the loan, maybe selling our motorcycles, cars, or lands. But after the loans/debts can be solved, I'm very sure that we will have a better life again.

It will never be easy to manage the financial in a proper way. People have the natural desire to feel interested in many things. If we can't deal with the desire, we may get trapped on the loan because it requires big money. When we have limited money, loan is one of the interesting solution to do. That's why people who have bad control on their desire, they easily got a problem on the loan trap.

It is true that saving is done if we already have enough income, because having income can help us to meet our own needs such as our own will because I think everyone has their own will so to be able to get it we must have a clear income, and also with a clear income we can save to prepare for the future, of course the future must be prepared from now on because if it's too late it will be difficult.

many young people are currently only thinking about the trendy style so they only spend their money to buy things that are only temporary because young people have high prestige so it's only natural that they only think about a luxurious lifestyle in their youth, but it's true as you say saving in youth is good and in my opinion there are rarely young people who can save consistently. by saving in youth of course it can make us have savings whether it's money or assets that are clear for the good of the future and that's good.

Being trapped in a situation where we have to look for loans in order to pay other debts is indeed a trap that sometimes makes us someone who is difficult to make changes but on the other hand it is difficult to get out of a zone like this if not with a strong desire to make a gap and improve yourself.

Money management is sometimes very easy to say but difficult to do especially for those who are in a low economic strata that requires them to take loans so that they can still survive in a hard life like now but I agree if indeed the tendency to borrow money actually makes your risk of destruction stronger.

Nobody's blaming anyone. Life delivers curveballs, and sometimes you just need to sidestep them, not hit a home run. Excuses don't grow savings accounts; actions do. Not having too much money at the end of the month; priorities. You can't save? Increase your expense scrutiny. Something can always give. Yes, those self-indulgences we think we deserve. The truth? You deserve more money freedom. Start small if necessary. Extra change adds up. Discipline, not rocket science

You shouldn't splurge when the tides flip, which they will. Double your savings with this golden ticket. An emergency fund? Check. Investment? Next up. It's about making money work for you, not making money. Please be honest about where your money is going and start steering it

This is really sad. Only those who are middle class can understand this well. Far from saving their wealth, most of the middle class people take loans from various NGO to meet their needs and at the end of the year they find themselves entangled in another loan while repaying their loan. Thus it keeps coming back in cycles. Later, they cannot accumulate wealth through this. If the money is not invested in a good place at the end of the day then it is never possible to achieve solvency And it is not possible to go to the dream future. So in this case one must be careful in earning and spending money.

This is true on which there's no way that we could really be able to make out those kind of conclusions on why other people cant really be able to save up.Just like me into those previous years on which i dont
really have the time or situation that i couldnt be able to save because of too much expenses or being that negative with my salary which i do even have debts or loans on which it would really be impossible
for you to set aside some amounts for you to be able to save up.This is why we cant really be able to judge someone on what are the challenges or things that they do face in life for them they cant be able to save.
What if you do really want to save but due to those real life situations then you cant be able to do so.

This is why on the time that you do have that kind of opportunity on saving up then it would really be that best that you should really be doing that
so you would really be able to make yourself having those possible back up funds for emergency and for some investment purposes.

Well, saving is only possible when you have or earn enough resources available. A person with a limited income cannot save anything even if they have discipline and financial literacy because when you don't have more money than you need, you won't be able to spare any and when you can't do that, it means no savings for you.

It's a blessing if one can start saving money at a young age because such people always have a bright future. When you are saving money while you are still young, you will have a good enough sum to build your assets when you grow older, and having assets means a better future.

So things like these are not possible for everyone, and those who can do them are guaranteed to have a great life ahead.

Different ways for different people living in different regions of the world. Some overspend because they can afford to do it and they have economic security because of their government. On the other hand, some are compelled to spend more than they may earn because of economic situations and increasing inflation, in such countries and regions, people barely earn enough to be able to fulfil the monthly expenses of their household and are compelled to borrow money now and then.

Situations are not the same for the whole world, which is unfortunate. This is the biggest reason why a lot of people migrate from one place to another, it's only with the hope that they might get a better life if they get out of the current situation.

The emergence of sophisticated smartphones from year to year, the high cost of pleasure, and unimportant holidays, often become a big obstacle for the younger generation, especially those born after the year 2000, to save money. In my circle, many children born after the year 2000 do not have a job but their lifestyle is very high, I wonder where their money comes from, there are also many who are successful in making money from social media, especially TikTok. In conclusion, I really agree with you, today's young generation must be able to be more innovative and think outside the box, so that they can own a house in the future because expecting just a modest salary will not be enough to help them buy their dream house now it is impossible.

Most likely, it’s a wrong management of finances. Although taking a loan sometimes may be inevitable, but if you are doing it regularly and seems like you rely on it on every financial problem that arrives, then I must say you’re actually not doing the right thing. Do not tolerate yourself because in the end, you will only see yourself drown into debt.

Instead, save a little no matter how you find it hard to save. Manage your finances wisely, even if it means being deprived with comfortability in life but as long as you do it for future benefits, then it’s definitely worth doing.

Purchasing a house with an average job was an opportunity few decades ago for middle class in the western countries, but in countries like Ukraine, for example, where I live, it was not and still is not an option at all. People here have to save for decades, and not only themselves, but join the efforts with the nearest family to make being an average, not big enough apartment possible. You have to be rally creative and think out of the frame to earn what in more developed economies is considered to be a small salary (2-3 thousand of dollars/euros). If it wasn't for crypto, my life would be much more difficult and poorer, because I would have to go to a 9-17/5 job and make approximately 500 dollars (and that would be way higher, than most of Ukrainians make).

The same as some of the people at my workplace. Every payday, I often see them going out to eat, out of town, and even purchasing expensive gadgets. What I can always hear them say is they deserve to be rewarded by purchasing the things they like as they work hard every day in their life.

The lifestyle of today's teenagers is very different and they only follow fashion styles rather than studying to find skills for their future profession, they only have hobbies playing and shopping to attract the opposite sex, but only a few percent of teenagers focus on looking for skills and they will enter high school vocational to increase knowledge according to their respective fields of expertise. I think everyone realizes the importance of saving every month rather than spending their income/paycheck just for fun and entertainment, because if you don't have savings then you won't have savings for emergency funds that you need at any time without us knowing.

hahaha, that's right, friend, "elite style, difficult economy" is an appropriate slogan for many young people today who always prioritize style over progress in life. There's nothing wrong with being stylish, but forcing it is wrong, because we should style according to our own abilities. I sometimes feel irritated with today's young people who are still in school but they insist on having a luxurious style every day. I think there are two possibilities for them to be able to style themselves luxuriously, because their family is rich or they demand that their parents be able to do it. fulfill their desires even though the economy is unstable, including their financial situation.

In my opinion, with them like that, maybe they have the idea that they only live once, so they have to enjoy it with great pleasure, because I once met a young person who had a lot of style saying exactly like that, "You only live once, bro, so you have to enjoy it with pleasure." having fun" .
In my opinion, this kind of thinking needs to be addressed, because life does not always have to be spent just having fun, of course there is a future that must be prepared from a young age.

Of course everyone wants financial freedom, therefore we have to think about the future, at a young age we have to make the best use of it, working hard is one of them, having a big income is of course what everyone wants. also with that we can fulfill our own basic needs and desires, style ourselves according to the income we generate, and there is no harm in having fun only once in a while, because that is also a need so it is included as appreciating ourselves, the same as pampering ourselves Alone.

I agree with you, while we are still young we have to hone the skills we have so that we can produce something good because it is also for our own good in the future so that we don't continue to depend on our parents, because I myself am embarrassed if I continue to depend on my parents, in fact I want to support my parents well. It's true what you said, "Money can't solve everything and money can't solve all problems, but not having money is a problem." hahaha this is a fact of life.

I guess no matter how people become educated or not, but if their intentions are not that strong to save for their future and for emergency funds, they will definitely won’t find some ways to save. Getting low salary income is not actually an excuse, because if you really have the biggest desire to save, you will resort into looking for side hustles that will pay you extra income, that way you will have no excuse from not saving.

savings is not a hold for profit
savings is a hold to avoid further debt
savings is meant to cover the short term events planned/unplanned that you dont want harming your long term investment amounts

yes several events can occur which make savings struggle.. but thats the point. by being able to save, means when events happen its the savings that take the hit so that other things dont get hit..
you are suppose to deplete your emergency savings funds in an emergency. and then re fill that budget when things calm down. its not suppose to just sit untouched forever. your suppose to use it as the buffer to protect your other interests and investments from being hit