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Why do people insist that they can't save anything?

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    #76
    Vole, if that's how you believe it works, then stop saving and spend everything you make. Live paycheck to paycheck. Live it up and let your dependents fend for themselves. Apply for scholarships for schools and camps. They'll probably get loans but paying those will make them slef-reliant and responsible. It sounds like you resent your kids more than anything so stop going above and beyond. Just provide them with the basics.

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      #77
      Originally posted by vole
      The non-savers are not cheating. They are playing the game correctly. Serious trouble comes, and the savers still lose everything. In fact, even without serious trouble public and private policy looks to take savings away from people. Inflation eats away the value. Equities investing to protect against inflation is a roulette wheel with numbers on the wheel called Enron, Qwest, Madoff, Adelphia, AIG, and too many more to list.

      No, I think the old values of savings have changed in this economy of paper money and giant corporations. Those that keep to outdated strategies will end up losing, just as those in outdated industries disappear.
      maybe you should update your strategy to saving. but savers are still winners over their non-saving counterpart especially during a downturn.

      take college financial aid: instead of saving a stack of cash, payoff your mortgage. it puts you in same position as a non-saver according to financial aid formulas, but puts you in a better overall financial picture.

      you might be thinking "oh no, my 401K was just cut in half and all spots on the equities roulette wheel are losers". while I thinking "yes! my 401K was cut in half and I get to buy all these great companies for ridiculusly low prices, giving me more shares for the same money, which will only get me to retirement faster".

      being able to capitalize on others mistake: while some non-saver are struggling with thier mortgage because they over-spent and are hoping that the government bails them out. last year, I went out and bought a house for 25% less than 2 years ago and with a very good rate because of the "credit crisis". people moving into a larger home have an easier time because the price difference is smaller. a couple of month ago a car dealership had so many rebates/mark downs that you could get a new SUV for 10K. but to be able to capitalize on these, you needed cash on hand because the financing well had dried, so non-savers couldn't get this savings. on top of this so many business are having deeper discount sales to get your dollars, so I can buy more for the same amount of money.

      there is still no shortcut for retirement savings, so eventually it will catch up to them unless they have some great pensions(which are rapidly disappearing).

      while sometimes, it pisses me off how the irreponsible get some nice breaks. but I realize that if I think hard enough, I will also be able to capitalize on some of those breaks. and the ones I can't, I say to myself "oh well, I'm still and will be in a better position than they are"

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        #78
        I like this topic, thanks for bringing this one up..It's true people think they cant actually save BIG TIME if they save "very little money" from time to time

        this rings my alarm, new yrs resolution!

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          #79
          Personally, I don't see why there's such a big debate on how Vole feels about savings. He sounds no different that 85% of my friends who also feel saving their money would be a huge waste. At the end of the day, everyone is entitled to their own opinion, I know this site prides itself on being money savvy, but if someone wants to go against "our grain", they have every right.

          So, Vole, if you don't want to save bro, you don't have to. I sure am not going to try to convince you. Everyone lives by their own merit.

          Just my $.02.

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            #80
            If some of those "non-savers" found themselves in the position my family is in now, they'd be out on their keisters. I'm glad to have saved, and am happy to continue on.

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              #81
              I noticed some discussion about spending money on wants out of savings. I think this could all be avoided and is why we should plan our savings. Instead of just saving just because and feeling bad when we take from our savings for summer camp, a vacation, etc. We should save for these things on purpose. I think that's the point of saving an emergency fund and keeping it separate from saving for a car, saving for camp, saving for retirement, saving for college, etc.

              If we constantly reevaluate what we will want and need in the future and plan our savings accordingly, we don't have to feel guilty about it.

              Just my 2 cents.

              Comment


                #82
                Originally posted by Pitman View Post
                Personally, I don't see why there's such a big debate on how Vole feels about savings. He sounds no different that 85% of my friends who also feel saving their money would be a huge waste. At the end of the day, everyone is entitled to their own opinion, I know this site prides itself on being money savvy, but if someone wants to go against "our grain", they have every right.
                While I agree that folks are free to do whatever they want to with their money, this site is called SavingADVICE, so when someone posts that they are doing something and lots of us disagree or don't think it is a wise financial move, we all are free to share our advice on a better way of doing things.

                If someone feels that saving for the future is not a smart idea, I wonder why they would be hanging out at a site like this.
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

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                  #83
                  Just thought I'd weigh in on two things:

                  1.) I concur with Steve that I find the number of posts suggesting that people asking for, or giving advice on this board are out of line, when as far as I can tell, that's the purpose of the board.

                  2.) I think Vole's argument is a manifestation of a frustration probably every one of us feels. But at the same time is also dangerous hyperbole. While you may know many people who are currently being subsidized by your good decisions, I think painting them as being in some great position is over-statement. I strongly suspect if you could change places with them, you would not.

                  It's hard to watch people benefit from luck or bad short term planning, but ultimately good long term planning gets you to the end point you want. If someone spends all their savings on lottery tickets and winds up winning then I think "they made bad decisions and got lucky," not "man I should go buy some lottery tickets."

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                    #84
                    Originally posted by Investing First Steps View Post
                    It's hard to watch people benefit from luck or bad short term planning, but ultimately good long term planning gets you to the end point you want. If someone spends all their savings on lottery tickets and winds up winning then I think "they made bad decisions and got lucky," not "man I should go buy some lottery tickets."
                    That's a great analogy. Along the same lines, if I see that someone is living beyond their means and, as a result, is able to qualify for some aid that I can't get, I don't think, "Gee, I should live beyond my means so I can get aid, too." No, I think, "That person is really heading for trouble when their lifestyle catches up with them. I'm glad we aren't like that and handle our own finances a lot better."
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                      #85
                      I'd further argue that you haven't seen the end of all these moves yet so it might be hasty to draw conclusions. I've sat and watched the 90's stock boom, the dot com boom and the housing boom all go by thinking "those are bubbles I'm not going to touch them." Meanwhile people laughed at me and told me how they were "making" so much money while I was sitting on the sidelines. In the end all that money they "made" wasn't real and I was much more comfortable with my decisions.

                      I think it's easy to see parallels in the benefits of these bailouts. If the end result of government assistance is getting to pay several more years of interest on a house you can't afford and winding up taking a bath on it in the end anyway, I'm not sure you'll wind up being so envious of them. Usually good decisions have a way of catching up with you, just like bad ones.

                      Comment


                        #86
                        Originally posted by Investing First Steps View Post
                        If the end result of government assistance is getting to pay several more years of interest on a house you can't afford and winding up taking a bath on it in the end anyway
                        I wonder the very same thing. Is bailing out a homeowner who bought a house he couldn't possibly afford really going to accomplish anything in the end or is it just postponing the inevitable? I guess the point is to keep the person in the house until the value recovers to a point where he can sell it without losing money. Who knows how long that will take, though? It could be years.
                        Steve

                        * Despite the high cost of living, it remains very popular.
                        * Why should I pay for my daughter's education when she already knows everything?
                        * There are no shortcuts to anywhere worth going.

                        Comment


                          #87
                          Its because they don't care for their future. If someone cares for his/her future then he/she would definitely care to save. If you have a goal and would like to make it visible, then you would definitely be saving for it. But such people don't have any goals. They don't want to ahead ahead from where they are right now (current).

                          In my opinion, Savings equals to a reward to yourself.

                          Comment


                            #88
                            It's hard not to formulate your opinions by what you see on the news every night. Often times it's not the whole truth.

                            Very, very few people are actually getting any help at all.

                            But everyone has the perception that millions are lined up to the trough gorging like pigs.

                            If you can get by and sort out your own problems by yourself, then bully for you - that's what we are all supposed to do. Everyone should prepare for bad times. But sometimes life knocks you down, despite your best efforts.

                            Don't begrudge the very few that can actually get what little help is out there.

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                              #89
                              I once read that saving is like exercising. It's very hard to get started but the longer you do it the easier and more rewarding it is.

                              I think most people are in denial about what could happen to them.

                              Comment


                                #90
                                What all this has taught me is that nothing is a sure thing. I have worked my entire adult life (32+ years) in a profession that never faced layoffs of employees. That is until now. Now every day I worry if my job is secure. Had I experienced this feeling years ago, maybe I would have made different financial decisions. Being a saver by nature, I am in a pretty good position financially, but I took my career for granted. I assumed that I would have a job as long as I wanted to work. Now I worry. This is a giant wake-up call to me and should be to everyone. Tomorrow is not for certain!!

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