Topic: Untouchable Savings: Do you have it? - page 8. (Read 1126 times)
I never have "untouchable savings", because savings is there to make sure that I do not suffer when something big happens. Right now all of my investments I had for the past 2-3 years is gone these days, sold them all and had to cash them out but that's alright, I can save again anyway, not a big deal. I will probably have it again soon, its going to be tough period so I am not going to have any savings at all for a long time unfortunately. But when I do have savings, they are NEVER untouchable, they are there so that when something big happens, and I need money, I can use it to make life easier for a moment.
be cautious with fiat savings
lets say you invested $100 in the 1980's where back then it was enough to go towards 1/3rd of an old rusty second hand car with a years life left in it
thinking that this saving is good enough that when your kid gets to mid-late teens the interest and such would cover 100% of your kids first cheap car to drive
well over that decade and a half you soon realise the end amount of $150 doesnt even cover the cost of a bicycle
i agree people should save. but also should accumulate to outpace inflation
lets say you invested $100 in the 1980's where back then it was enough to go towards 1/3rd of an old rusty second hand car with a years life left in it
thinking that this saving is good enough that when your kid gets to mid-late teens the interest and such would cover 100% of your kids first cheap car to drive
well over that decade and a half you soon realise the end amount of $150 doesnt even cover the cost of a bicycle
i agree people should save. but also should accumulate to outpace inflation
Yes. I have untouched savings until I reach my goal, so I can finally touch it. I think it's important to keep this personal rule for your life, otherwise you are going to use funds which were supposed to be untouched for any banal reasons.
Yes, I have untouched savings for case of emergency, which I use when I find myself in a difficult situation, but when I am saving for a particular thing I make sure to discipline myself and don't touch it until I achieve that thing I am saving it for, It is good to have savings, there is no successful person on earth who didn't start by practicing financial discipline by having some savings. Saving makes way for a better future financially, to be successful financially, one needs to know cultivate the habit of saving.
when it comes to fiat. untouchable savings is what some call "under the matress" savings
however these depreciate over time because of inflation devaluing that money.
i would not recommend having untouchable fiat savings. however i wont recommend spending spree either.
its best to find ways to make your savings "work" for you. and accumulate more "savings" to outpace the fiat inflation devaluation
this maybe simple things like buying a lawnmower. and renting it out to the neighbours kid so he can have a hobby job mowing lawns for the neighbourhood
where eventually your lawnmower investment gets more in return
without you needing to be the landscaper/grass cutter guy
EG a $130 lawn mower where you rent it out for $3 a week gets you ROI in 1 year +$26 profit
and the kid is getting $15+ per 1 hour work a week.. everyone wins
however these depreciate over time because of inflation devaluing that money.
i would not recommend having untouchable fiat savings. however i wont recommend spending spree either.
its best to find ways to make your savings "work" for you. and accumulate more "savings" to outpace the fiat inflation devaluation
this maybe simple things like buying a lawnmower. and renting it out to the neighbours kid so he can have a hobby job mowing lawns for the neighbourhood
where eventually your lawnmower investment gets more in return
without you needing to be the landscaper/grass cutter guy
EG a $130 lawn mower where you rent it out for $3 a week gets you ROI in 1 year +$26 profit
and the kid is getting $15+ per 1 hour work a week.. everyone wins
I feel it is my case.
It is specially difficult to me to spend money on things I deem to be unnecessary and I try to safe as much as possible, that means I can easily spend two years without buying anything for myself for the sake of the future. It was not until recently that I have tried to face the apparent problem of compulsive saving.
Now I try to use some money to enjoy with friends and buy some gifts for myself, but it is difficult. I blame the harsh economic times my family once went through.
It is specially difficult to me to spend money on things I deem to be unnecessary and I try to safe as much as possible, that means I can easily spend two years without buying anything for myself for the sake of the future. It was not until recently that I have tried to face the apparent problem of compulsive saving.
Now I try to use some money to enjoy with friends and buy some gifts for myself, but it is difficult. I blame the harsh economic times my family once went through.
My experience may not be very exciting, but I'm sure many are like me. I tried more than once to keep my savings without compromising them, but over the years I did not succeed in making use of those savings as I had planned. I remember when I owned Bitcoin mining machines in 2014 and my decision to keep what I earned because I was convinced that the price would inevitably rise. And after I got a good amount of bitcoins, I had to sell them to clear accumulated debts that my father left before he died. I could deny those debts, but I could not override my father's will to pay off all his debts after his death. Ali's death was a double shock to me.
The difference between savings and no savings is often just a few percent in spending. If you spend a tad more, long term you have no savings. If you spend a tad less, you'll always have something left. I like having something left.
"The difference between savings and no savings is often just a few percent in..."?
A: Spending
B: Inflation
I think when it comes to untouchable savings it is also unavoidable to consider the economic environment and circumstances you are in. Argentina and Turkey had an above 80% inflation rate in October 2022 year-over-year.
The "untouchable" somehow implies that you lock it away and perhaps even refrain from managing it. I know that is my assumption about what OP wanted to express with the question, but I just wanted to point out that in certain circumstances even the untouchable savings must be managed thoroughly.
If with "untouchable" it is meant that someone earns fiat, puts it aside and strictly doesn't touch it, then those untouchable earnings might vanish over time despite any good intentions of the disciplined saver.
If with "untouchable" OP refers to a fixed amount being invested in liquid and rather safe asset classes, that makes more sense if it is to be understood as a general rule or basic principle.
When I read about an 88% inflation rate in Argentina, the bitter truth is that those who put their money aside for years with very high discipline, turned out to be the big losers anyway.
So the fact of the matter is that building wealth starts with educating yourself about financial management and not underestimate the impact you can have on your own situation by familiarizing yourself with some basic terms and rules.
the non zero "store of value"
we all know bitcoins retail market(cex) spot price is volatile. but not many know there is a non zero bottom store of value below and outside of the spot market
when in 2021 it had a $10k non zero bottom. with a market volatility of speculation of $30k-$70k
the markets could have at its maxis gone $10k-$75k of speculation
but always above $10k due to some fundamentals that exist outside the market
so this $10k Store of value is the "untouchable savings"
when buying a coin in 2021 at $70k you have a untouchable saving (wealth protection) of 1/7th (~14.3%)
buying at $30k is a 1/3(33% wealth protection
in 2022 the non zero bottom was $15k
so if you managed to buy at $16k you have a "untouchable wealth store of value" of
93.8%
this is where i use the topics fear utility of untouchable savings.. as a positive thought about locking up weal value by knowing the assets "non zero bottom" to protect it from markets touching and losing X value
thus allowing me to better make decisions of when its best to spend money or not.. to invest in a asset or not. when its best to sell an asset or not..
thus if i made Xmultiple gains, to healthy sell some assets without depleting or losing the untouchable value
I always have untouched savings even though I can take it and spend it whenever I want, but there are some things that I have to prepare money for or have savings that I can't touch for other needs, this happens because I have a plan for certain situations such as the case of savings specifically for bill payments or other urgent payments that I might have to prepare in advance. Especially in the current economic conditions, I don't know when I will get money again, therefore I keep it while I have it and don't touch it, even though I have to eat potluck food for a while.
My aunty was a very hard-working woman that engaged in so many trades to ensure that she saved for her children. Due to her quest to save for my cousin, she always ate an unbalanced diet and visits quack doctors whenever she was ill. My mother will always advise her to take good care of herself but she refused to heed her advice. She died because she ensured that her savings are untouchable. A few months after her death, my cousins squandered all she had saved for them.
For now, the only untouchable fund I have is my bitcoins and the fiat account I have is for my daily expenses. I can only touch my bitcoin if there is any investment opportunity that offers some higher rewards or in case of emergencies like health or loss of Job. For me, there are no untouchable savings because life is full of opportunities and uncertainties.
My story is rather uninteresting, but let me know yours. Does this idea also apply to you? You could have the money to buy a new car to replace your old and broken one but you prefer not to touch it. Do you hold yourself from spending what you have to the point of depriving yourself of what you deserve? Do you keep significant savings for occasions that might only happen in your imagination? Or at what point would you allow yourself to be drained of your last penny?
Well it applies to me depending on my situation right now. I usually keep my money and just spend it to what I needed the most since the unexpected things may arise at any point. If I really need some food right now, I would be obviously spending my last penny for it as my starvation might even affect me to somehow survive in finding another income or source of money. You never want another problem to arise once that sign that you needed to buy or consume whatever that is showed itself. Sure you might hold off your last penny to buy that last burrito, but it will be more costly in the end if you get sick after you finally found another source of income. Kind of a domino effect?
That is very nice story and I am also impressed by the tweet of yours. It just made me think lot of stuff that I do on everyday basis and can help me reduce my expenses or at the same time help me gain more exposure on spending on right stuff. This is really important to understand because we always get carried away with unwanted expenses and regret it later. The emergency fund is really important and we never know what circumstances our lives would put in front of us. Better save some money in the name of emergency and spend most of it but only on logical things and routines.
In my country, most people live pay check to pay check. They got savings but these are considered retirement and they are locked in or if you want to withdraw there is a big penalty.
Most people living in North America have a net worth which is negative. If you have a net worth of $0, you are considered lucky because you don't owe any debt. Mortgages, cars, cell phone plans, credit cards, line of credit, etc. These people are slaves to their debt and will be paying it for the rest of their lives. Hence why many are suffering now due to growing inflation.
Most people living in North America have a net worth which is negative. If you have a net worth of $0, you are considered lucky because you don't owe any debt. Mortgages, cars, cell phone plans, credit cards, line of credit, etc. These people are slaves to their debt and will be paying it for the rest of their lives. Hence why many are suffering now due to growing inflation.
Does this idea also apply to you? You could have the money to buy a new car to replace your old and broken one but you prefer not to touch it. Do you hold yourself from spending what you have to the point of depriving yourself of what you deserve? Do you keep significant savings for occasions that might only happen in your imagination? Or at what point would you allow yourself to be drained of your last penny?
That is a very good question.
In the past, I would approach some things as if I had an infinite amount of energy and could never get tired. There are doctors and health experts who recommend that people avoid stressing or straining themselves. I did the opposite of that advice for many years. Which makes me wonder how I did not succeed in screwing up my health or simply dying. Even I do not know the answer. All I know is I ran myself ragged for a long time.
It is possible approaching things as if you have infinite energy, is exhausting. Giving yourself an incentive to learn how to generate greater amounts of energy.
While actively pacing and rationing the amount of energy expended. Gives zero incentive to learn to produce or gather more of it.
The same principles might apply to money. Actively spending and going broke could produce incentive and motivation to develop methods to amass more money. While rationing expenditures might produce an illusion of comfort and safety.
OP, Your story speaks to your intelligence and maturity, even as a student. Some young people, even when away from their parents, do not know how to be independent. They regularly remind their parents that their accounts are depleted. But as a result, such people achieve little in life without experiencing all the difficulties of education and self-sufficiency.
I liked the phrase I recently heard in a comedy, but it is more relevant than ever: saved - consider earned.
I would say this set of student are children born from homes where everything is given to them. One who comes from a less wealthy home has to really manage his funds because he doesn’t know when next he is getting a refill. I liked the phrase I recently heard in a comedy, but it is more relevant than ever: saved - consider earned.
In my country here almost every parent has this untouchable savings and it is mainly for the kids education it is only on rare occasions that you see it been touched, cases likely to health issues.
Nothing is bad about having untouchable savings but haven’t to leave even if it could be use to save life looks dump to me. I also have savings but not that untouchable because I have specific period for each savings and when the time comes to use it I withdraw all. But it is always had for me to use this fund when it is time just yet. Most of this savings are either for rent or tuition fees.
I have savings, but I can't consider it as untouchable savings because I can use that savings if there is a certain thing that I need to buy, or if there is an emergency where I need some funds to pay the bills. I can't considered it as an untouchable savings, but just a simple "emergency fund".
Depriving myself is something that I will not do especially when it comes to necessities. I mean you can deprive yourself from entertainment or pleasure, but from the things that we need. Currently, I always hold myself from spending to the things that I don't need because I need money to buy something that I need.
My story is rather uninteresting, but let me know yours. Does this idea also apply to you? You could have the money to buy a new car to replace your old and broken one but you prefer not to touch it. Do you hold yourself from spending what you have to the point of depriving yourself of what you deserve? Do you keep significant savings for occasions that might only happen in your imagination? Or at what point would you allow yourself to be drained of your last penny?
Your experience is something that I didn't experience when I was studying. I didn't deprive myself from foods or anything because I need it because if you are suffering from hunger, your way of thinking and your whole body will get affected. What I'm not doing at that time is spending my money into things that I don't need. At that time, I can still save money from what I'm doing, but for sure it wasn't the same as yours. Overall, your way of thinking isn't normal for a student because most of the students now are having this "YOLO" mindset where they will just spend and spend without thinking their future.Depriving myself is something that I will not do especially when it comes to necessities. I mean you can deprive yourself from entertainment or pleasure, but from the things that we need. Currently, I always hold myself from spending to the things that I don't need because I need money to buy something that I need.
OP, Your story speaks to your intelligence and maturity, even as a student. Some young people, even when away from their parents, do not know how to be independent. They regularly remind their parents that their accounts are depleted. But as a result, such people achieve little in life without experiencing all the difficulties of education and self-sufficiency.
I liked the phrase I recently heard in a comedy, but it is more relevant than ever: saved - consider earned.
You always need to have some kind of untouchable money in case of unforeseen circumstances, but there is also a good expression: money should not lie around as dead weight; it should work. If you have extra money, put it into some business. In my case, this is a store rental. And also, for those people who just save money without any purpose, no matter what, their profit, as a rule, always slows down compared to the money that is spent on travel, cars, houses, and so on.
I liked the phrase I recently heard in a comedy, but it is more relevant than ever: saved - consider earned.
You always need to have some kind of untouchable money in case of unforeseen circumstances, but there is also a good expression: money should not lie around as dead weight; it should work. If you have extra money, put it into some business. In my case, this is a store rental. And also, for those people who just save money without any purpose, no matter what, their profit, as a rule, always slows down compared to the money that is spent on travel, cars, houses, and so on.
When I was still younger, I have thought about having all of your money in the savings bank means that you're wise and you'll be living well off until I grow older but I was all wrong. That stock knowledge that has been taught to the most of us, there's more than that.
They've never told about inflation and the idea that you'll get rich by having more money is what matters as the main topic related to finances. But then, dealing with the actual thing, inflation, savings and investments, it's truly a broader thing. Now, I've got not that much savings as most of my money are scattered in different assets and investments.
They've never told about inflation and the idea that you'll get rich by having more money is what matters as the main topic related to finances. But then, dealing with the actual thing, inflation, savings and investments, it's truly a broader thing. Now, I've got not that much savings as most of my money are scattered in different assets and investments.
I stumbled upon this interesting tweet days ago.
https://twitter.com/SchrodingrsBrat/status/1622320014215856128?cxt=HHwWgIC-9aPd0YMtAAAA
Many of the comments are equally interesting. They apply the idea to all kinds of things including the game Resident Evil. And then I thought perhaps this is also true in the economic aspect of life. Perhaps this aptly applies to those whose economic lives are like the desert and whose little money they have they keep tightly for the hardest of days.
When I was studying in the university far from family and relatives or even family friends, I had a difficult time. Money is extremely scarce. Early mornings are usually for hot drinks-- coffee, chocolate, milk, tea, or whatever. I realized that what made those drinks important is that they are hot. So I learned to drink only a hot cup of water which I could easily ask for free from the eatery in front of where I stayed.
Come meal time, I would also request that the serving be made in half. That's to save money. But I had the money. I always made sure I have some. Emergencies and unforeseen expenses may arise anytime. So I need to have money all the time, but I won't touch it. Ironically, it also gave me hunger, inconvenience, discomfort at times.
My story is rather uninteresting, but let me know yours. Does this idea also apply to you? You could have the money to buy a new car to replace your old and broken one but you prefer not to touch it. Do you hold yourself from spending what you have to the point of depriving yourself of what you deserve? Do you keep significant savings for occasions that might only happen in your imagination? Or at what point would you allow yourself to be drained of your last penny?
https://twitter.com/SchrodingrsBrat/status/1622320014215856128?cxt=HHwWgIC-9aPd0YMtAAAA
Many of the comments are equally interesting. They apply the idea to all kinds of things including the game Resident Evil. And then I thought perhaps this is also true in the economic aspect of life. Perhaps this aptly applies to those whose economic lives are like the desert and whose little money they have they keep tightly for the hardest of days.
When I was studying in the university far from family and relatives or even family friends, I had a difficult time. Money is extremely scarce. Early mornings are usually for hot drinks-- coffee, chocolate, milk, tea, or whatever. I realized that what made those drinks important is that they are hot. So I learned to drink only a hot cup of water which I could easily ask for free from the eatery in front of where I stayed.
Come meal time, I would also request that the serving be made in half. That's to save money. But I had the money. I always made sure I have some. Emergencies and unforeseen expenses may arise anytime. So I need to have money all the time, but I won't touch it. Ironically, it also gave me hunger, inconvenience, discomfort at times.
My story is rather uninteresting, but let me know yours. Does this idea also apply to you? You could have the money to buy a new car to replace your old and broken one but you prefer not to touch it. Do you hold yourself from spending what you have to the point of depriving yourself of what you deserve? Do you keep significant savings for occasions that might only happen in your imagination? Or at what point would you allow yourself to be drained of your last penny?
The big difference with the wealth is it carries over to your next generation so there is no regrets if you have such untouched savings which you had the intention of your hiers.
I don't have such but if possible I will be open to it and let the upcoming generation feel little ease while making their own investment plans, and about spending when its really needed just spend for it cause there is no point of keep staking it even when you needed it most but don't use it unnecessarily which gives short term pleasure and nothing else.
Why will you want to save when you know you need to satisfy your thirst first, you can only save when you have residual income not saving at the detriment of yourself even at the verge of death.
Untouchable saving has more to do with long term project or wanting to earn some interest in a certain account for saving for a long period.
But I don't agree on saving when you're immediate needs haven't been met.
Untouchable saving has more to do with long term project or wanting to earn some interest in a certain account for saving for a long period.
But I don't agree on saving when you're immediate needs haven't been met.
Come meal time, I would also request that the serving be made in half. That's to save money. But I had the money. I always made sure I have some. Emergencies and unforeseen expenses may arise anytime. So I need to have money all the time, but I won't touch it. Ironically, it also gave me hunger, inconvenience, discomfort at times.
To hard for someone to have untouchable saving or declare as it is especially if there earnings is just enough for them to live, if you are in that situation maybe you shouldn't do that since it will really starve you and you cannot get the things that you wanted. But we can do something to have extra income and have what we can declare as untouchable funds and to able not to touch it better separate some amount or even have different jar for emergency funds and other jar for your future wants and needs.
Saving is important for anyone who can afford it, because everyone knows that there may come a time when they need much more money than what they receive as their weekly or monthly salary. But I know personally of people who save to the extent that sometimes it seems that they need financial help, and at the same time they refrain from spending at least as much as they need for a life worthy of a human being.
Such saving through personal renunciation of something that you need to function normally is wrong for me personally, and I believe that you understood that after you experienced it on your own skin. A man cannot function normally if he is hungry or if he is cold, and at the same time he has means that can solve all of this, but he refuses to use them. Saving money by giving up cigarettes, coffee, bad food, alcohol and the like is logical, but being hungry and at the same time having a full wallet is simply wrong.
If the car is very old, breaks down often and repairs are expensive, then you are literally wasting money trying to keep it in driving condition. In addition, the safety of you and those who are in that car can be endangered, so a new car is not a luxury, but a necessity that has a purpose. In addition, you can save significantly if you buy a used car that is in good condition.
Come meal time, I would also request that the serving be made in half. That's to save money. But I had the money. I always made sure I have some. Emergencies and unforeseen expenses may arise anytime. So I need to have money all the time, but I won't touch it. Ironically, it also gave me hunger, inconvenience, discomfort at times.
Such saving through personal renunciation of something that you need to function normally is wrong for me personally, and I believe that you understood that after you experienced it on your own skin. A man cannot function normally if he is hungry or if he is cold, and at the same time he has means that can solve all of this, but he refuses to use them. Saving money by giving up cigarettes, coffee, bad food, alcohol and the like is logical, but being hungry and at the same time having a full wallet is simply wrong.
My story is rather uninteresting, but let me know yours. Does this idea also apply to you? You could have the money to buy a new car to replace your old and broken one but you prefer not to touch it. Do you hold yourself from spending what you have to the point of depriving yourself of what you deserve? Do you keep significant savings for occasions that might only happen in your imagination? Or at what point would you allow yourself to be drained of your last penny?
If the car is very old, breaks down often and repairs are expensive, then you are literally wasting money trying to keep it in driving condition. In addition, the safety of you and those who are in that car can be endangered, so a new car is not a luxury, but a necessity that has a purpose. In addition, you can save significantly if you buy a used car that is in good condition.
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