The savings problem

[johnsaributua]

That's right, there should be a prediction that life does not always go without financial problems, for me vacationing and spreeing is a form of entertaining myself but that does not mean spending all of it or even taking from savings, I think there is still that. It is not a problem to fulfill desires including going and buying what you want as long as the ratio is maintained and there is still savings (clear management) that I feel when I need money including trading capital, of course it must be prepared rather than waiting for urgency.

Granted, it's each person's money, but when times are tough, these people may even blame the country's economy. Such as the weakening exchange rate, expensive transportation, public facilities that have increased their costs, etc. If sensitizing with soft story telling can still be done as sharply as possible, it seems to me that it can be developed, currently I rarely hear advice on saving unless it only offers excess interest in a financial institution, moral messages can also be done by state participation in the form of overcoming the mindset that saving is very doable even if only $ 0.5 / local currency 

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[LastKiss]

~snip~
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?

I agree that Purchasing Power is getting worse each generation, based on this site Inflation Calculator, 1$ dollar in 1900 is now equal to $0.03. It's crazy to see how much our dollar getting worse each generation and there are no real solutions for this, in my opinion, what we can do is we should not waste on anything like food, gases, technology, electricity, water, etc. Many young people these days love to waste many things and we should change this habit from our kids so the next generation should value for what they have.

[EarnOnVictor]

~snip~
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?

I agree that Purchasing Power is getting worse each generation, based on this site Inflation Calculator, 1$ dollar in 1900 is now equal to $0.03. It's crazy to see how much our dollar getting worse each generation and there are no real solutions for this, in my opinion, what we can do is we should not waste on anything like food, gases, technology, electricity, water, etc. Many young people these days love to waste many things and we should change this habit from our kids so the next generation should value for what they have.

It is everywhere and even the developed nations are lamenting unless you have a high-paying job which is not so many people that would have the opportunity to secure. The best is to have multiple jobs/works or any other means by which income would be entering your account/wallet, be it formal or informal, that's how you can make it in life and you can be financially free. Many are resolving to save too, but to many as well, the saving plans are not easy, they will try and will continue to fail due to too many commitments and bills to pay. This is why the problem should be solved from the root, and that is the income problem. If you ever have an income problem, you will surely have a savings problem unless you are such that is not financially burdened by friends and family members, while some have extended dependents to take care of.

This is why I do not bother myself with any savings calculations, and it is either I have the money to do whatever I want to do or I do not have it at all. This means that I do not force myself to save but rather invest to make more. When my investment with other hustle materialises, no one will tell me to pursue my goal with the money even without having to frustrate myself on the savings. Above all, let us find a way to make more money and not let the banks be using our money for free while we earn so little. It can be a short-term investment in companies, or direct investment online. You can also buy land with your money and find other means to earn more to achieve an end.

[Silberman]

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?

It is not that changes are needed, changes are coming no matter what, capitalism gained the support of the people as it brought incredible benefits to everyone, many poor people could enjoy a nice salary and a better life, the middle class lived a life of privilege that even the most powerful people a century ago could only dream, and in return the richer got richer as well, so everyone won with that system, but now those at the top want everything for themselves, the middle class is disappearing, while to poor are just getting by, and if this continues for long I can assure you it will not be long until people demand for another system, even if it is to their detriment.

[Rockstarguy]

This varies from country to country. I don't think there is a saving problem on a global scale. Some countries are even experimenting with systems like universal basic income, which gives money to citizens without them working.
I think the main problem is that some jobs pay very little. The injustice in income distribution is increasing day by day. The rich are getting richer while the poor can't rise to the middle class. Also, young people can't save or invest because they see the luxurious lives that come with social media all the time. They try to pretend like being rich and spend money relentlessly. They can't save money without changing their lifestyle.

I think the problem in which people are finding it difficult to save money is because of the inflation rate, the inflation has cause living to be very expensive that working people can't even afford to get the basic things for them.  This inflation problem is a challenge that is affecting most countries and it will surprise you that some people have reduce their level of standard of living but still the inflation affecting them that it is not even easy again to save money. The inflation is affecting the poor and the middle class more, the rich people are making more money because before this time that inflation as not gotten to this level the rich people have already gotten a standard foundation that they can always create wealth even with the inflation challenge.

The problem of saving money this time is not just an issue of living luxurious lifestyle but why it is hard to save money is because the inflation rate that is increasing on a steady,  this will really affect people to meet up with their responsibilities. I think one just need more source of income to be able to balance financially.

[Dewi Aries]

That's right, there should be a prediction that life does not always go without financial problems, for me vacationing and spreeing is a form of entertaining myself but that does not mean spending all of it or even taking from savings, I think there is still that. It is not a problem to fulfill desires including going and buying what you want as long as the ratio is maintained and there is still savings (clear management) that I feel when I need money including trading capital, of course it must be prepared rather than waiting for urgency.

going on holiday and going on an excursion is one way to pamper yourself, so that is a normal thing, in fact, in my opinion, what is not natural is people who do not want or have no desire at all to go on holiday, because in my opinion, taking a vacation is a necessity that must be done. with my own aim to refresh my mind, including making me relax because I like to vacation in places with a natural theme, and of course this requires money to do it, but the other side that must be considered is finances too, as you said, with holidays like This doesn't mean we have to spend all our savings. because that is not a good goal.

In my own environment there are many young people who go on holiday, but before going on holiday they collect money first or save, but only for the holiday, so after going on holiday they don't save any more. I think they have a little thought that needs to be corrected, because even if they don't have a purpose for going on holiday, they should save for their future and for their own good, also on the other hand, of course we will need emergency funds that we must have at certain times. , so in my opinion the importance of having savings is that it can help us at certain times, especially if an accident or illness occurs, of course this requires money to pay for treatment, so the younger generation should be able to think on this side.

[demonica]

I feel like our generation learned how to understand financial and economic life at an earlier age compared to the previous generation. Which is honestly a good thing. Because the younger generation becomes aware of how hard it is to live in the economy. I think it's one of the factor why there's a decline in birth rate since people don't want child because of how expensive it is. And of course, we really can't deny that inflation is growing rapidly, but the salary isn't increasing as much as how inflation grows.
And tbh, I also feel like back then, things were more inexpensive and their salaries can cope up with the living expenses. Even my aunties were able to purchase their land at their mid ages. Unlike now where it would be hard especially if you're living with an average salary. If an average person is having a hard time to allocate his salary for his daily living expenses, of course it's harder to save.

[8rch7]

I feel like our generation learned how to understand financial and economic life at an earlier age compared to the previous generation. Which is honestly a good thing. Because the younger generation becomes aware of how hard it is to live in the economy. I think it's one of the factor why there's a decline in birth rate since people don't want child because of how expensive it is. And of course, we really can't deny that inflation is growing rapidly, but the salary isn't increasing as much as how inflation grows.
And tbh, I also feel like back then, things were more inexpensive and their salaries can cope up with the living expenses. Even my aunties were able to purchase their land at their mid ages. Unlike now where it would be hard especially if you're living with an average salary. If an average person is having a hard time to allocate his salary for his daily living expenses, of course it's harder to save.

Youth generation have been smart than old generation with money management, they have long term planning with salary payment how much have spending for daily needed and how much percent have use for saving assets. Many of them not use saving only but want to increasing their saving fund by investing in stock and some of them put in Bank deposit until invest in bitcoin. I am so excited with youth generation have planning to credit house with their salary payment not really huge but enough for saving fund and great manage planning for the future.
But for youth generation must be smart with investment assets, saving in the Bank is not profitable much because fiat have more inflation values in the future and put saving fund in Bank deposit or invest it in stock or cryptocurrency will more profitable in the future.

[0t3p0t]

Youth generation have been smart than old generation with money management, they have long term planning with salary payment how much have spending for daily needed and how much percent have use for saving assets. Many of them not use saving only but want to increasing their saving fund by investing in stock and some of them put in Bank deposit until invest in bitcoin. I am so excited with youth generation have planning to credit house with their salary payment not really huge but enough for saving fund and great manage planning for the future.
But for youth generation must be smart with investment assets, saving in the Bank is not profitable much because fiat have more inflation values in the future and put saving fund in Bank deposit or invest it in stock or cryptocurrency will more profitable in the future.

Sorry but I am having the opposite opinion regarding your point wherein the present generation has learned or even smarter than the past when it comes to money management because I can see them doing the other way. Lavishness is what will describe this young individuals that are posting indiscriminately and mostly on social media about their lifestyles. If I am not mistaken their lifestyle today doubled or even tripled that of the previous generation when it comes to excessive spending one reason is also inflation but yeah they don't care about assets though not all of them but majority of them do.

[slapper]

That's right, there should be a prediction that life does not always go without financial problems, for me vacationing and spreeing is a form of entertaining myself but that does not mean spending all of it or even taking from savings, I think there is still that. It is not a problem to fulfill desires including going and buying what you want as long as the ratio is maintained and there is still savings (clear management) that I feel when I need money including trading capital, of course it must be prepared rather than waiting for urgency.

going on holiday and going on an excursion is one way to pamper yourself, so that is a normal thing, in fact, in my opinion, what is not natural is people who do not want or have no desire at all to go on holiday, because in my opinion, taking a vacation is a necessity that must be done. with my own aim to refresh my mind, including making me relax because I like to vacation in places with a natural theme, and of course this requires money to do it, but the other side that must be considered is finances too, as you said, with holidays like This doesn't mean we have to spend all our savings. because that is not a good goal.

In my own environment there are many young people who go on holiday, but before going on holiday they collect money first or save, but only for the holiday, so after going on holiday they don't save any more. I think they have a little thought that needs to be corrected, because even if they don't have a purpose for going on holiday, they should save for their future and for their own good, also on the other hand, of course we will need emergency funds that we must have at certain times. , so in my opinion the importance of having savings is that it can help us at certain times, especially if an accident or illness occurs, of course this requires money to pay for treatment, so the younger generation should be able to think on this side.

We need holidays to breathe fresh air, right? Flip the script for a moment. Life isn't simply vacations. A mix of necessities, wants, and surprises. Foresight and renewal are essential. We construct for tomorrow as well as today

The kids saving just for vacations is a start, but there's more. Like chess with nature, life's unpredictable. You've got to think several steps ahead. Savings aren't simply for enjoyment; they protect you from life's surprises. Emergencies like health crises aren't maybes. The main challenge is teaching kids balanced saving. It's about being present but focused on the future. Help children see savings as a foundation for a strong, well-rounded life, not just a means to an end

[Jawhead999]

Sorry but I am having the opposite opinion regarding your point wherein the present generation has learned or even smarter than the past when it comes to money management because I can see them doing the other way. Lavishness is what will describe this young individuals that are posting indiscriminately and mostly on social media about their lifestyles. If I am not mistaken their lifestyle today doubled or even tripled that of the previous generation when it comes to excessive spending one reason is also inflation but yeah they don't care about assets though not all of them but majority of them do.

And there's nothing wrong with that, their life their choice.

The current generation like to become popular, get validation and exploring anything. Unlike the old generation where they spent most of their times to work and save their money in order to enjoy their retirement.

Since the current generation don't care with retirement funds, it means they will work until they die.

[WillyAp]

The current generation like to become popular, get validation and exploring anything.

You mean the generation you know from tv shows and social media?
That is about 15% of the generation. While many dream of becoming a influencer they actually won't make it to that stage.

[Y3shot]

I agree that it isn’t so easy but then, I don’t think it is so difficult. Is it really hard to save a small percent of your income which will gradually grow up? It’s easier when the amount is small, so for someone who wants to start saving, they should start from saving smaller amounts and then eventually they can increase the amount they save. We can all make it better for the younger ones by teaching financial education and responsibility on time. This way they can learn it before they need to do it.

Saving money is something that have never been easy even if you earn a reasonable amount of money. When you have money it is very easy for the money to be spent because that is when you will have a lots of things and demand to solve with money. But savings can take place by good decision even with the demands out their. Savings is not just easy for any body but with discipline one can still try it's best to save something no matter how much that is earned as income.

[snowpega]

Saving money is something that have never been easy even if you earn a reasonable amount of money. When you have money it is very easy for the money to be spent because that is when you will have a lots of things and demand to solve with money. But savings can take place by good decision even with the demands out their. Savings is not just easy for any body but with discipline one can still try it's best to save something no matter how much that is earned as income.

Dear, do you ever think saving money is getting more difficult day by day? it is because of the high inflation rate we all are facing in the current span well let's say if the person is getting a good income right but on the other hand his expenses are also increasing due to an increase in inflation rate but if one gets success in saving his some of money it will be prove a good luck for him/her in the future needs.

I think we should divide our salaries/income into three parts, one for the expenses, second for investing to make more money out of it, and third for saving which I think is a good strategy for making a good portfolio.

[carlfebz2]

Saving money is something that have never been easy even if you earn a reasonable amount of money. When you have money it is very easy for the money to be spent because that is when you will have a lots of things and demand to solve with money. But savings can take place by good decision even with the demands out their. Savings is not just easy for any body but with discipline one can still try it's best to save something no matter how much that is earned as income.

Dear, do you ever think saving money is getting more difficult day by day? it is because of the high inflation rate we all are facing in the current span well let's say if the person is getting a good income right but on the other hand his expenses are also increasing due to an increase in inflation rate but if one gets success in saving his some of money it will be prove a good luck for him/her in the future needs.

I think we should divide our salaries/income into three parts, one for the expenses, second for investing to make more money out of it, and third for saving which I think is a good strategy for making a good portfolio.

Really hard to save when everything is really that shooting up specially into those commodity price on which we know that this isnt something that getting lower as years passing by.
The worst thing that even payrates or salary or wages arent that increasing anytime soon. If they do make some increase then it is really just that peanuts on which it doesnt
really be able to compensate at least with that inflation effects. This is why into those people who are really just that earning less would really be just that sensible that they should really be finding
any income source that they could be able to get on so that they could really be able to survive.

We are really that finding up methods and ways for us to compensate somehow for us to survive specially if you do have a family to feed then you should do more work for you to have
that extra income but we do know that not all would really be that someone whose really that good when it comes to this one.

[goldkingcoiner]

But another less often talked about issue is that almost nobody is able to make savings anymore.
So, do you agree that radical changes are needed?

The reason why people are not saving so much anymore is because more and more people understand the fact that saving is not really saving. What saving really is, is investing into fiat. However due to the inflationary nature of fiat, that investment becomes worthless over time. And yes, I agree that changes need to be made.

Sure, saving up money is the instinctive way to protect your wealth. But that instinct is wrong. The best way to save up money is to invest in things more worthwhile than fiat.

Personally, I would invest it all into Bitcoin and a few smaller investments in other cryptocurrencies. I am sure that nobody on this forum needs an explanation why.

[Natalim]

Sorry but I am having the opposite opinion regarding your point wherein the present generation has learned or even smarter than the past when it comes to money management because I can see them doing the other way. Lavishness is what will describe this young individuals that are posting indiscriminately and mostly on social media about their lifestyles. If I am not mistaken their lifestyle today doubled or even tripled that of the previous generation when it comes to excessive spending one reason is also inflation but yeah they don't care about assets though not all of them but majority of them do.

And there's nothing wrong with that, their life their choice.

The current generation like to become popular, get validation and exploring anything. Unlike the old generation where they spent most of their times to work and save their money in order to enjoy their retirement.

Since the current generation don't care with retirement funds, it means they will work until they die.

The lifestyle of the people has changed in every generation and this is also because of the developing technology that we have as people are just exploring what they see around them and they want to be happy which is why they work hard and enjoy life. But I don't care what they are doing as it was their choice.

Well, the question is if they have a savings plan to stay in a luxurious life for a long time especially when they can't work anymore. We notice that if not most but many didn't do this thing as they were disturbed by their bad spending habits and ended up broke and empty when getting old. Most of them just rely on their pensions, not on their savings.

[Mahanton]

But another less often talked about issue is that almost nobody is able to make savings anymore.
So, do you agree that radical changes are needed?

The reason why people are not saving so much anymore is because more and more people understand the fact that saving is not really saving. What saving really is, is investing into fiat. However due to the inflationary nature of fiat, that investment becomes worthless over time. And yes, I agree that changes need to be made.

Sure, saving up money is the instinctive way to protect your wealth. But that instinct is wrong. The best way to save up money is to invest in things more worthwhile than fiat.

Personally, I would invest it all into Bitcoin and a few smaller investments in other cryptocurrencies. I am sure that nobody on this forum needs an explanation why.

There would really be coming a point in life on which you do have those kind of thoughts that saving wont really be that needed specially on the moment that you do see that your pocket is full on which someone
wont really be that something mindful about on what would happen in future. They wont really be minding about those probabilities that they could really be able to deal with because on the time that they will really be able to think up and realize those things is on the moment that they dont already have the money into their pocket. We do know that regrets do really always happen at the end on which it would really be just that normal
that people would be not giving out importance if they are still on a good situation or condition but once things been fucked up then they would really be starting on doing into those so called solutions
but it do really ends up on being your self learning experience.

There's no way on knowing on what would happen in the  future, this is why it would be always that relevant that you should really be having some savings because
once financial aspect would kick in then you wont really be finding yourself on such big trouble.

[tyz]

I agree that Purchasing Power is getting worse each generation, based on this site Inflation Calculator, 1$ dollar in 1900 is now equal to $0.03. It's crazy to see how much our dollar getting worse each generation and there are no real solutions for this, in my opinion, what we can do is we should not waste on anything like food, gases, technology, electricity, water, etc. Many young people these days love to waste many things and we should change this habit from our kids so the next generation should value for what they have.

Not a good example. If you put this $1 on your savings account in 1900 without interest, then of course it has only $0.03 in buying power today. But if you would have invested this $1 into the S&P 500 in 1900, it would be $113,000 today [1].

[1] Here is a calculator for this https://ofdollarsanddata.com/sp500-dca-calculator/

[Oasisman]

I feel like our generation learned how to understand financial and economic life at an earlier age compared to the previous generation. Which is honestly a good thing. Because the younger generation becomes aware of how hard it is to live in the economy. I think it's one of the factor why there's a decline in birth rate since people don't want child because of how expensive it is. And of course, we really can't deny that inflation is growing rapidly, but the salary isn't increasing as much as how inflation grows.
And tbh, I also feel like back then, things were more inexpensive and their salaries can cope up with the living expenses. Even my aunties were able to purchase their land at their mid ages. Unlike now where it would be hard especially if you're living with an average salary. If an average person is having a hard time to allocate his salary for his daily living expenses, of course it's harder to save.

Good observation. I also thought this is one of the main reason why the decline of the birth rate. The Millennials must have seen how hard it is to live in a modernized world with a lot of unemployed people and the inflation rate are rapidly growing while the salary increase can barely cope up with the inflation. But in spite these facts, I believe there are still those who can afford to put aside a savings without sacrificing anything financially. Since the economy are constantly changing, people must need to adapt to the changes to keep up being able to afford the cost of living. One must need to constantly learn new skills to keep up with the competitive  job market. The more skilled you are, the more you're earning.
Also, savings may not be a thing for the younger generations now as they are already paying premiums for retirement  plans and other insurances.