The savings problem

[Lida93]

The only similar thing that happening in my country is the surging of housing price, other than that I think it's slightly different. The salary growth is not stagnant, the average salary has been tripled compared to 10 years ago in here. And there are definitely more and more people buying cars. I think there are a lot more middle-middle and upper-middle class than lower-middle class and an actual poor people, less people are unemployed tho it still many.

Out of curiosity I earnestly like to know in what part of the world are you talking about even in this economic melt down that is ravaging the economies of every country, because what you have just said sound like in the movies to my knowing. I will well appreciate you attach a research data backing your claims.
Thanks.

My non-expert guess is that the economic crisis hit harder on the developed nation than on the developing nation and 3rd world nation.

Sorry mate, your guess is not correct. A simple example to clarify issues here is by looking at the rate of migrants moving from the third world nations to the advanced developed nations of Europe and the WEST.

If the economic crisis hits milder in their own country's they will not be flocking to the developed nations for greener pastures where you're guessing that the economic crisis is hitting harder there.

Like you said, it's a non-expert guess.

All that being said, I do agree that a change would improve global economic in general.

I totally agree that a change will bring about an improvement but how can this change be achieved as recent recommendations by economic experts has  proven nothing of improvement rather the global economy keeps getting harder every day.

[alani123]

There has been extensive talk about how social security systems around the globe are having issues due to declining birth rates as well as a decline in the quality of employment for younger generations.

Has it not gotten to a point where people are advising others to reduce the numbers of births to be able to carter for the little we've given birth to, this is all about population, there are advantages and disadvantages in it, now people have reduced the birth rate and other aspects of the economy are falling down lacking behind, what should we do, work force is what we cannot do without, understand the power of man labour, efforts and their unique roles in production

The proposals of the big heads managing states is to cut social security and enact austerity left and right. The thought process behind the economists that enact austerity measures on the masses to address issues like declining social security contributions are very backwards.
At least in the long term, the way this is going to play it, is that it's going to exaggerate the problem even more.

Low birth rates contribute to declining growth in economic activity and lacking contribution to pension systems - > these issues are addressed by budget cuts and austerity - > austerity reduces the money that ends in people's pockets -> people have even fewer births...

It's hard to grasp if there's an end game to this. I tend to believe that it's just some stupid, short sighted selfish politically motivated policy.
But in the long term this has the potential to completely decimate the bloodline of today's working class.
And what then? Today's mid to high-income earners, the property hoarders, the big capital will be the new 99% to the future ultra-rich. Rinse and repeat again? Until there's no human left?

People fail to understand that this isn't a left or right wing issue.
Enacting meaningful social economic policy for the greater population is about our future as humans.
It's sad to consider that you're considered an extremist in some countries if you just ask for good healthcare and schools. If not these things the fuck are my taxes supposed to be paying?

[nara1892]

It's clear that saving money has become harder for many especially with rising living costs and stagnant wages. People are working more but struggling to set aside any savings. There's a need for changes whether it's better job opportunities, affordable housing or other policies that can make things easier for everyone. It's a complex issue but acknowledging the problem is a step toward finding solutions right?

Income and expenses are a problem in this case so it is difficult to get a balance in terms of finance, sometimes let alone saving or setting aside money, for daily living expenses alone there are still quite a lot of people who complain because it is still far from enough. One of the problems is as you said that the cost of living is increasing but income is stagnant, I think for the first solution problem maybe we have to work harder or work smart like building a small business such as opening a shop and in addition we also while continuing the main job, with that then there will be additional costs for living or for saving in preparation for the future, and I think the government should pay full attention to this problem because it is clear that many people are suffering from this situation and one of the things the government can do is increase the wages of workers or the intention is to adjust to the basic needs which in fact are increasing.

[Gozie51]

So, do you agree that radical changes are needed?

A radical change needs to be made no doubt and it has to be in the area of inflation control. Government should reduce lending and printing of money because it all creates room for more money in circulation. Some one has argued that it is easier to make money now and be rich unlike in the past where you have to work hard and harder yet no much financial benefit acrue to it but you were able to get the value of the money you had then unlike now where you have money being devalued by inflation.

So a swift solution should be in trying to reduce inflation like I said earlier, making loan available, bonds and treasurer bills, printing of money should all be reduced to the economy will gain some value. If you have less inflation then you have money whose purchasing power is very high and you can purchase alot with little money and you can save and reinvest.

[dunfida]

It's really a complicated situation.

You can talk this because you're not the billionaire, but if you're one of the billionaires, I'm sure you won't want to report all of your wealth and income because it would make you to pay more tax.

Since the poor and middle range people need to feed themselves, they don't mind with overwork because if they don't do it, someone else will.

And  this is why it would really be that survival of the fittest. We are living on a world on which inequality is never been that possible on which there would really be those people who are sitting on the top of the chain
and there are ones who are on the bottom. This is why if you do find yourself somewhere near the bottom or in the middle then it would really be just that normal that you would really be needing to make your ass off work hard for you to be able to survive. Economic matters or concern? It would really be just simply be ignored because people wouldnt really be giving out some importance on things on which they do know that it wont really be something beneficial for them. This is why it would really be that best that you should really be sensible on the actions that you should gonna need to do for you to be able to survive.

Savings? It would really be just that a standard thing but not really that shocking that majority of us do really fail out on doing even with the basics.
They would really be seeing its relevance on the time that you would really be experiencing hard stuff.

[TimeTeller]

So, do you agree that radical changes are needed?

A radical change needs to be made no doubt and it has to be in the area of inflation control. Government should reduce lending and printing of money because it all creates room for more money in circulation. Some one has argued that it is easier to make money now and be rich unlike in the past where you have to work hard and harder yet no much financial benefit acrue to it but you were able to get the value of the money you had then unlike now where you have money being devalued by inflation.

So a swift solution should be in trying to reduce inflation like I said earlier, making loan available, bonds and treasurer bills, printing of money should all be reduced to the economy will gain some value. If you have less inflation then you have money whose purchasing power is very high and you can purchase alot with little money and you can save and reinvest.

We can think of the solutions that the government should do, however, it is the government itself which can truly address this situation.
Though inputs here are quite nice as you can see that ordinary citizens have their some sort of solution to the ongoing challenge faced by people.
If only some of those suggestions can reach to the government and be seriously considered. It would be nice to have some input coming from its people.
A radical change is needed, but how can we actually implement it? Most of the time, it is only all in our minds but not put into action especially if we have no power to influence the decision in the government.

[Fortify]

There has been extensive talk about how social security systems around the globe are having issues due to declining birth rates as well as a decline in the quality of employment for younger generations.

But another less often talked about issue is that almost nobody is able to make savings anymore.

Think about it. We all know at least some boomers. Most of them bought a car in their teens, a house in their thirties, went on frequent vacations and still even with all that were saving money beyond just for retirement savings.
Since that time, wage growth had stagnated, house prices have skyrocketed, and the purchasing power of the average salary has been going down.

So aside of the social security bubble potentially bursting in the future, there's also a bigger underlying issue.
Purchasing power has only been getting worse from generation to generation, and thus being able to make any savings is already a distant dream for most. Younger people just keep working more for less, to s point now where mostworking people can't put even a single dollar aside.

Could there be a solution for these issues? Economists have long argued about the strengths and failures of our economic system, but alas it appears as though "trickle down economics" has failed humanity.

So, do you agree that radical changes are needed?

At least in my country about ten years ago the government made a change when it came to pensions and forced every company to pay a percentage, while the employee pays a percentage. It is a very generous scheme that has a mandatory opt in, where you are allowed to opt out if you need but it is a very generous perk. This will take some pressure off the state as new retirees will be less of a burden and have their own non-state pension plans to support them later in life, allowing them to spend a fair bit back into the economy to keep things moving. Ultimately though we seem to have hit a wall where life expectancy has topped out, so if governments are able to keep it balanced with the ever changing demographics, it can still be sustainable.

[darkangel11]

One of the ways to stop this would be to move away from fractional reserve banking and Keynesian economics of money printing. We had societies function for thousands of years without this notion. The problem with these people is that they falsely assumed that this is going to work. They've never been in this situation because we're constantly progressing and facing new problems, but somehow they think they know what's the right approach. Let's face it, people who make monetary policies are blind and deaf. They have no idea what to do, but they feel like they have to do something. Maybe the solution is to let the system burn and rise up from the ashes as a system based on limited supply of money?

[kentrolla]

I look at it from a different dimension as there are multiple dimension to this reality, I have seen people buying stuff with EMI/loans which is not a necessity and right from the mobile, car, house and every thing which they use in day to day life are being taken on loan. This was not the case in the earlier generations as they won't buy things which were not absolutely necessity as they don't used to buy things under peer pressure to show off, I have seen my friends getting into debt trap by buying things which are not required but buying it due to social/peer pressure and ending up extended hours, good part of their income goes towards loan. If we know the difference between the "Need" and "Want" and focus on "Need" then our lives will start falling in place.

  

[blockman]

It becomes the belief of many that we have to work hard so that we're going to get out of poverty and be wealthy. But do that in my country and you'll still get not enough because wages here are really low. That's why you need to look for other hustles for you to be able to survive, the high cost of living but then the low salary and slow growth in increases is hard to bear. If you're a foreigner and you're going to take a look at this case in my problem, you might find it that it's not a problem at all because of the standard of living from your country. However, this is the reality here that cost of living is quite high for locals and that's if you talk to someone that's working hard, you might get an answer that he or she don't have that much savings because usually the breadwinner spends it all for obligations, bills, etc.

[oktana]

Of course changes are needed. It is true that People can barely save their money but my perspective is that they can save it but just won’t save it. It mustn’t be an intentional act but I think it is the fact that there are now too many things one could spend money on. Going back to the old days, there wasn’t as much inventions and things to waste money on, but today, there are a lot of unnecessary things that people rush to purchase. For example, take a look at the price of the latest iPhone, It is so expensive. Instead of young people to be saving or investing, they use all they have to buy that. That is a distraction that wasn’t always there.

[boty]

Of course changes are needed. It is true that People can barely save their money but my perspective is that they can save it but just won’t save it. It mustn’t be an intentional act but I think it is the fact that there are now too many things one could spend money on. Going back to the old days, there wasn’t as much inventions and things to waste money on, but today, there are a lot of unnecessary things that people rush to purchase. For example, take a look at the price of the latest iPhone, It is so expensive. Instead of young people to be saving or investing, they use all they have to buy that. That is a distraction that wasn’t always there.

Saving is not an easy thing to do if we don't have the habit of saving from an early age and we also can't control our desire to use the income we have on things we don't really need. Of course we won't be able to have savings if we don't use the income we get correctly

What you say is very true, in the past there weren't as many discoveries as there are now and most people who already have a lot of income that they earn will certainly use their money to invest and nowadays with many new things that we can find out easily of course there are some people who If they have enough money, they will of course buy the things they want, even though they don't necessarily need them.

[cozytrade]

Saving is an important thing for every person. But nowadays it has become very difficult for people to "save". People in our country are struggling to meet their family needs from the profit they earn from the workplace wherever they work. Currently, rising commodity prices and stagnant wages are forcing people to stop saving. It is really a complicated situation and people should have multiple sources of income to cope with such situation. Finding multiple sources of income and changing all the problems of poverty is of utmost importance.

[bitzizzix]

In my opinion, in the dynamic environment of agency life, a radical change of pace is inevitable. However, to overcome this, we are required to be independent and smart in taking initiatives so that we can have a life that can meet important needs now and in the future. Such as living needs, investment and also having to develop a good strategy in everything.
Currently, most people have difficulty saving because of increasing needs and wrong planning due to prestige, increasing needs, we must be able to overcome this by having a job or additional income. And this is one of the best and smartest ways to still be able to meet your living needs, save and invest without depending on the government because only we ourselves are able to overcome or change it.
Apart from that, most generations are too concerned with ego or desires compared to the needs that are actually important, including for the future or long term which must be planned or thought about as well as possible.

[Baki202]

Saving is an important thing for every person. But nowadays it has become very difficult for people to "save". People in our country are struggling to meet their family needs from the profit they earn from the workplace wherever they work. Currently, rising commodity prices and stagnant wages are forcing people to stop saving. It is really a complicated situation and people should have multiple sources of income to cope with such situation. Finding multiple sources of income and changing all the problems of poverty is of utmost importance.

I did not want to say that saving money is bad for me because I dislike the idea because I know that if I try to save money, I will end up spending it. Instead, I will invest the money or use it to buy what I need right away because if I wait to buy something, the price will go up and it will become more expensive. The rate of inflation means that your money will eventually lose value. And given the direction that commodities prices are moving, I will now declare that I want to save money, invest, and make more investments after each one. Even when it comes to paying salaries and duties, the government is not carrying out its obligations. Rather than worrying about conserving money, people should be thinking about ways to invest and have several sources of income.

[0t3p0t]

Of course changes are needed. It is true that People can barely save their money but my perspective is that they can save it but just won’t save it. It mustn’t be an intentional act but I think it is the fact that there are now too many things one could spend money on. Going back to the old days, there wasn’t as much inventions and things to waste money on, but today, there are a lot of unnecessary things that people rush to purchase. For example, take a look at the price of the latest iPhone, It is so expensive. Instead of young people to be saving or investing, they use all they have to buy that. That is a distraction that wasn’t always there.

Well, yeah there are three types of people, first is the one that prioritize buying an asset for future investment purposes. Second is the one that buy liabilities and the last one is the person that buy both. Wherever we belong to those kind of people it depends on us regardless of distraction. Saving fiat alone is a dead investment in the long run due to inflation and some other possible reasons.

[NewRanger]

Well, yeah there are three types of people, first is the one that prioritize buying an asset for future investment purposes. Second is the one that buy liabilities and the last one is the person that buy both. Wherever we belong to those kind of people it depends on us regardless of distraction. Saving fiat alone is a dead investment in the long run due to inflation and some other possible reasons.

When talking about investment, of course the fiat must also revolve around other activities that produce results if not as you stated above. Of course, now like it or not, we have to look for ways to earn additional income and on the other hand, currently several cryptocurrencies have taken over the price of gold and we just have to be smart about investing in shares, property, gold or BTC. In reality, it's not as easy as saying it and sometimes time is not their friend, but at least they can give the best for their family.

[Volimack]

Inflation is causing the price of goods to go up in coins making it difficult for people to savings. But if he can fight them and survive he is successful. Lifestyle changes are very important for saving otherwise you can't save. Remember your career plan is different than others when you are employed. Your previous lifestyle will not do to sustain it for long. That's why you have to find the right solution yourself and move forward.

[DeathAngel]

Young people can save money by adopting smart financial habits. They could start by creating a budget & tracking their expenses can help identify areas where spending can be reduced. Prioritising needs over wants & avoiding impulse purchases can contribute to significant savings. Exploring alternative ways to earn extra income like freelancing or part time work can boost savings. They could take advantage of technology such as budgeting apps & cashback programs can help maximise savings. By implementing these strategies young people can navigate the challenges of the cost of living & achieve their savings goals.

[btc78]

Loans for almost everything force people to work seven days a week. Closing one loan, another opens, and people live in debt without free money that could be invested.

Let us talk about young people nowadays I think a lot of them have fallen victim to credit cards they are basically working for money they have already spent aside from other economical issues this thing with loans might be a major reason as to why a lot can not seem to save up money how will you save up money if the money you have earned were already spent before you even could touch it