Untouchable Savings: Do you have it?

[Darker45]

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?

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[LoyceMobile]

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.

[temple]

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.

[Dickiy]

I always have untouched savings even though I can take it and spend it whenever I want, but there are some things that I really 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.

[NeuroticFish]

There is a huge difference between untouched savings and untouchable savings.

Rational people will have, if they can afford it (!), some savings they will not touch unless something big and bad happens. Does this means they'll die before spending all their money? Yes, and it's fine. Having a certain peace of mind has its costs.

Untouchable savings is imho stupidly risky. They have their purpose in case of people with certain addictions, but it's something that has to be treated with extreme attention. It's more advisable to allow other (trusted!) person/entity take care of those savings than lock them and make them untouchable, since if a health issue comes up, one may need that money, but may not be able to touch it.

[Charles-Tim]

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.

Not only in Argentina, keeping fiat generally is not advisable just as your post generally meant.

Inflation in countries that is recently over 50% :
Iran     52.2
Ghana   54.1
Sri Lanka  54.2
Suriname   54.56
Turkey   57.68
Sudan   87.3
Argentina   94.8
Lebanon   122
Syria   139
Venezuela   156
Zimbabwe   230

Only one country with disinflation which is South Sudan, all other countries are experiencing inflation, even including the developed ones.

https://tradingeconomics.com/country-list/inflation-rate?continent=world

Bitcoin is one of the asset that people can invest on, although educating oneself is very important for not to invest at the wrong time. Bitcoin is a store if value in time like this, but not advisable sometimes. Sometimes, it is better to go for other assets. Diversifying is also good and wait for the right time to come again.

[bittraffic]

You can try to spend less all the time while the future is uncertain. But it wouldn't be right to make the money you save to be untouchable. One that you can do is sell your watch and jewelry to a pawnshop or to your rich friend as your last resort.

It's not good to hide your fiat money these days because inflation will eat up its purchasing power which in the end, you won't be able to buy anything out of it. If there is anything that you could make untouchable savings, its BTC in your private wallet.

[uneng]

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.

In the case of the person who was found dead on the desert I think it was a lack of management, although it's unlikely he/she would have survived even if the water had been drank. The difference would be to find the body with an empty bottle of water, instead of a body with a full bottle of water.

[NotATether]

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?

I don't have savings that are "untouchable" but on the other hand I won't just waste money on things it's not absolutely necessary to do.

Nobody can really foresee all the circumstances that could happen to you, so it helps having more money allocated for savings than what is necessary just in case the truly unexpected and horrible does happen.

[temple]

There is a huge difference between untouched savings and untouchable savings.

Rational people will have, if they can afford it (!), some savings they will not touch unless something big and bad happens. Does this means they'll die before spending all their money? Yes, and it's fine. Having a certain peace of mind has its costs.

Untouchable savings is imho stupidly risky. They have their purpose in case of people with certain addictions, but it's something that has to be treated with extreme attention. It's more advisable to allow other (trusted!) person/entity take care of those savings than lock them and make them untouchable, since if a health issue comes up, one may need that money, but may not be able to touch it.

Untouched vs. untouchable, good point and important to consider! That is certainly another very important distinction you added here.

[palle11]

Do you hold yourself from spending what you have to the point of depriving yourself of what you deserve?

No because that is slavery of oneself. Slavery is dehumanising and to give yourself such a treatment is just worse of it all, why deprive yourself of what you can afford? That means you suffer or labour to make money and you also labour to eat from same money, that is bad. Money is meant to take care of our challenges whether direct financial or indirect, money is important.

Do you keep significant savings for occasions that might only happen in your imagination?

It may not be intentionally. That is when you don't have financial challenges then you can save but if you do then you can't save if you barely survive with the little you earn.

Or at what point would you allow yourself to be drained of your last penny?

Health and medical issues because it involves saving of life and that is why they say health is wealth. If you are alive then you have hope of being wealthy.

[Lucius]

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.

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.

[arwin100]

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.

[Spaceman1000$]

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.

[jrrsparkles]

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?

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.

[tabas]

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.

[lovesmayfamilis]

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.

[LogitechMouse]

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".

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.

[Zaguru12]

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.

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.

[Hydrogen]

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.