Are people really having the wrong concept of savings?

[stadus]

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)

[Cryptock]

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.

[Cryptmuster]

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.

[Ngewex Yuk]

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.

[Cryptock]

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

[rat03gopoh]

"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]?

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

[iv4n]

...
Adding mine, setting savings to be flexible won't hurt you financially. I control my money, not the other way around.

Everyone should set something aside, either in "some fiat", gold, crypto, or whatever is valuable, even better if that is with the potential to be even more valuable in the future, or at least to cope with rising inflation. It can come in handy when "unexpected situations happen", and those situations happen to each of us... question is how often (so more or less) and how hard they hit us (weaker or stronger).

I don't think that people have the wrong concept of saving, it's just hard to save when someone is in some really difficult life situation, I am not sure how else to say it...

However, it is estimated to have increased by about 160 million between 2019 and 2020. Estimates for 2022 suggest that 46 million more people were living on less than the $3.65 poverty line than in 2019. As of 2022, 23% of the global population (1.8 billion people) were living on less than this threshold.

I guess there are a lot of people who have decided that it's better to have fun and enjoy life than to save... in my case, that changed after I got married and got kids. If I had saved earlier, it would certainly be easier now and maybe I would have more money, but then again, it wouldn't be me and I wouldn't be where I am now if I had gone the other way... and I am happy where I am now!

[naira]

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?

Talking about the concept of savings that I know so far depends on the target to be achieved. For example, I have several savings allocations, such as savings for holidays/3 months, for big family events/year, Bitcoin/ATH savings, and savings for buying things that I really want to buy. So when a month I have to fill in more than 3 different savings bags.

So with that goal, I apply the term savings concept. Of course, all of this must be supported by passive income which is the portion that needs to be implemented.

[KingsDen]

For so long I have had this wrong concept about saving I maintained this concept until I read an article that explains another concept of serving which the author of the article claimed was the real concept of saving. In hat article, he explained that no one should save without a purpose; for instance if you want to buy a car in the next 2 years you begin today to save some dollars which will sum up to some certain amount of money you will need to buy the car by the two years time. If you want to own a house of $120k, you would begin to save 200 500 or 1000 dollars until your money is up to 120 thousand dollars, then use it to acquire a house. He said this is the correct concept

[Huppercase]

I only save because I may be in need of money soon than I may imagine, I don't save money and think it is a investment, that is the concepts that banks used to attracts customers back then so that people can earn interest but guess what, those interest are worth nothing after saving your moeny with them, you wouldn't gain anything no matter the set up or trying to convince you to save as compound interest. Any money I have that is not meant for future emergency, I will consider it to be invested on any coin I think it will do well in the future and also in Bitcoin as well.

[KaliLinux]

"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?

Ordinarily, it wouldn't sound wise for someone to just spend everything they are earning weekly/monthly as the case may be unless there might be a serious need for it hence, people should usually save at least about 10-15% of their monthly earnings. People will save for different reasons, some people have something they intend to do in the future or just saving for their retirement, however, it doesn't really mean you cannot spend for it if something should arise which I believe is referred to there as "raining days"

[Hyphen(-)]

Many people have different ideas about how to save their own money, which is why some people choose to invest theirs; however, I believe saving is a unique word that everyone can understand regardless of the explanations because everyone has their own way of interpreting it, but the meaning remains the same.

Savings are funds or assets set aside for future use; we invest them in Bitcoin because we believe we will gain more than we have invested or saved.

[Little_Sister]

For so long I have had this wrong concept about saving I maintained this concept until I read an article that explains another concept of serving which the author of the article claimed was the real concept of saving. In hat article, he explained that no one should save without a purpose; for instance if you want to buy a car in the next 2 years you begin today to save some dollars which will sum up to some certain amount of money you will need to buy the car by the two years time. If you want to own a house of $120k, you would begin to save 200 500 or 1000 dollars until your money is up to 120 thousand dollars, then use it to acquire a house. He said this is the correct concept

We still have to save for future needs even though we don't have specific goals to buy luxury goods, motorbikes, houses or other things but when economic needs are urgent then we already have enough savings, but if you have a goal to save then it will motivate you to work hard achieve monthly income to save because you have a target of buying dream items as soon as possible.

[Hamza2424]

Savings ahhh, What should i say now well the concept of savings is commonly used by the middle class where they store their maximum earnings in Banks to utilize them in the hard times, and they overstore the money. For example to elaborate on this Consider a person having 10M PKR and is just storing them in his savings account but he needs only 100k PKR per month currently, He is earning and living well even saving more than he doesn't need to store the 10M all he needs is to just store 1M and Invest the remaining to expand the earning sources.

Store Less Invest more

Funds management is very important as one who doesn't knows better funds management cant earn more then an average person and his living standard is going to be also average.

• Set Your Goal (Helps you to be consistent and clear)
• Create your Monthly Spending limits
• Save enough to utilize for at least 6 months according to the Monthly limit
• Invest Wisely always grab low-risk investments
• Try Your Luck with Risky Investments as well
• Dont Fall for easy money

[samcoin]

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?

To me, the purpose of saving is to create new capital that would be used later to build a new source of income. Indeed, the importance of saving money is correlated to bad times in most people's minds, while we should think of it as a method that facilitates building the life we would like to live. However, it differs depending on everyone's age, as a young man would be interested in building capital to use later, while an old man would say that he won't live a lot to enjoy the results of his savings, so he would spend more than the young one.

[MiF]

Saving is for good and people do saving to have a good future, savings for health,education, billings, etc., it is good but sometimes people have a wrong way of savings, for me it is better to invest or buy things that can give you profit in the near future buying btc or land that we can sell in a high price in the near future is also good,instead of saving the money we do invest to make more money in the future.

[xSkylarx]

Saving is for good and people do saving to have a good future, savings for health,education, billings, etc., it is good but sometimes people have a wrong way of savings, for me it is better to invest or buy things that can give you profit in the near future buying btc or land that we can sell in a high price in the near future is also good,instead of saving the money we do invest to make more money in the future.

It is called they invest but at the same time they save money but it is more effective as they earn profit over time but this requires a lot of money its either you save first to achieve that money and buy those land or invest it to something or you will take out a loan though risky. Saving is really for you to use in the future but others wont be touching it even if they are struggling which is wrong and not efficient and serve no purpose unless it is more important the reason why you are saving it

[Cryptock]

Saving is for good and people do saving to have a good future, savings for health,education, billings, etc., it is good but sometimes people have a wrong way of savings, for me it is better to invest or buy things that can give you profit in the near future buying btc or land that we can sell in a high price in the near future is also good,instead of saving the money we do invest to make more money in the future.

It is called they invest but at the same time they save money but it is more effective as they earn profit over time but this requires a lot of money its either you save first to achieve that money and buy those land or invest it to something or you will take out a loan though risky. Saving is really for you to use in the future but others wont be touching it even if they are struggling which is wrong and not efficient and serve no purpose unless it is more important the reason why you are saving it

Not all the investment are fruitful neither all the investments are bad. Sometime or in fact most of the times - it is luck attached to the investment which can make your life happy or which can bring you in trouble.

[mulia sabee]

It's better before judging someone in choosing the wrong or right concept of saving, we should first understand what saving really means!
I think someone saves for a certain time limit and has a goal of his savings. There is a certain time, namely "short term and long term". I think there is no wrong concept as long as someone is able to save it.

[passwordnow]

The concept of savings that mostly knew is about something that you can pull in times of need and not just in the long term in the future but anytime that you need to have it.
People are confused with saving and investing, investing is more with exerting effort and taking risk. While in savings, you have to keep your money without any risk and without having that much return.