What happens when the majority of households can't save

[Akbarkoe]

This also happens in my country where I am where the basic salary is only for the cost of living in one month and that salary is the standard, as the standard of the average expenditure of the community so that the government gives that standard to companies to pay employees, if only the government could make a salary standard that is higher than the average cost of living for example 30% or more of it from it, it would be enough to help people save and invest in the long term, we really need this in an increasingly difficult economic situation because inflation pressure continues to increase slowly so that what was previously owned such as land, gold and so on must be sold just to be able to survive even though they still have income from their salary.

[batang_bitcoin]

Saving is actually a good thing, because they might be useful to them in future. But, imagine someone that is earning a little amount of money and have many responsibilities on their shoulders, how will he intend to save, when he is deadly in need of money. He will only have this opportunity if he is going to ignore the responsibilities he has on his shoulder, which is very wrong.. So I think the best thing to do in this situation is to let go of saving, and focus on his responsibilities.

It is a good point when someone earns a little and he's got more obligation than of his salary and that's why they cannot save. I think even in the slightest that they have, they can still save. If not, that's they need to address now and that's through earning more. Someone who cannot save, does earn a little and so, that's the solution. And that's to earn more and find more side hustles that could make them save and invest a little.

[Ultegra134]

The issue is that the cost of life (and especially housing) has increased tremendously out of proportion compared to wages. If I am not mistaken, in Greece's case, salaries are now returning to pre-crises levels, but that was over 10 years ago. In the meantime, everything is way more expensive than it was then, but we were calling it crisis then, but now the government calls it "development". In the past, people managed to save and even eventually acquire properties without major degrees etc., newer generations now have degrees and qualifications that previous generations didn't have, but still, we're making a lot less money than they used to.

[Alpha Marine]

Most countries missed out on industrialization. That ship sailed. You can't just make the decision to have local production capacity. You had to start that process 30 years ago.

This is true to an extent, but not entirely true. Yeah, I agree some countries missed out on industrialisation decades ago, but that doesn't mean they can't start now. The problem is, as you said, everybody wants quick fixes. Politicians want quick fixes so they can win their next elections, and voters want positive effects immediately.
It's a process that takes time, but it can be done. If there is a laid-out plan that different administrations follow. There can be a goal of what you want the country, state or city to look like in 20 years' time, and it's not a must that you must complete it in your tenure, but just take it a couple of steps further in your tenure. Then, when the next person takes over, he continues to build on what the previous person has done. But I guess I'm being too ideal, humans are never rational.

[junder]

There are indeed many people whom we consider unlucky, and I am sure there are many like that in our environment. However, I still believe that if those people are willing to work harder, they can change their lives. Therefore, in my opinion, we should not just blame circumstances but must have strong motivation to earn more money and meet all our needs.

And it should be remembered that savings are very important, so we must have them and work harder to be able to fulfill them.

You're right, there are people like that in my neighborhood too. Even though I'm not a member of their family, we can see people like this, one of whom is in my circle of friends. Anyone who wants to change their life for the better will do their best by working hard. Even though it's difficult to find a decent job, if you have a strong determination, positive change is definitely possible. And when it comes to saving money, it's indeed important. I once saw a video of an elderly man carrying a bag full of coins, and he wanted to buy a phone because his child had asked for one. That's one example of how saving can be done even in small amounts.

[justdimin]

What would a people first government do in this case? Create social housing in order to lower market prices and make it more affordable? Mandate higher wages? Create more housing by giving more permits?

The "majority" means 50% plus 1, and that means we already have a world in almost every single nation, most of the people can't save money, and while there are some who do, it is not the majority. Yeah, this is what happens, the current life that we are living in right now. We get to see people who save or invest here because it's a bitcoin forum, and that's understandable and hopeful, but go outside and you will see that most of the people in the world do not have money to save.

In fact, even I do not have enough to save, but I do save and make debt instead. Meaning, I could just end up not investing 100 bucks to bitcoin this month and use that to pay my debt, but instead, I do not pay my debt but save, sometimes I fail and cash out because I have to.

[YOSHIE]

It used to be that while wages would never get someone rich at least it was possible to eventually buy some property after years of work. Be it at least a house. A house doesn't have any productive capabilities, it's just a roof by pure material standards.

I have pondered and thought about life today and in the past, especially in economics, as you said and thought, Previously, with a salary of $10/week they could save and buy property, now with a salary of $100/week they cannot save at all.

In my research, nowadays even if they have a salary of $1000/month, they will not be able to save, this is influenced by high inflation, currently all countries are threatened with inflation, as well as the nature of high desires and unexpected expenses, this is a serious challenge in today's households.
The only way to live in this day and age, if you want to own property without saving, the only way is with credit, buy a house on credit, buy a car on credit, If you have a salary of $1000/month, spend $500 on property credit. Today's life seems like people have to be burdened with credit so they can save.
I have seen this method done by several of my friends over a period of five years, My friend already has a house, car, other assets using credit, as I said, saving and waiting for a lot of money is difficult these days.

[Paparazzi22]

First of all I will like us to know the reason why we save is for future purposes.. example when an emergency expenses comes up such as medical bills like surgeries or house expenses like burst pipe or roof leakage and no member of the house has savings that means they are in big trouble,it has automatically become a big problem.

[Hamza2424]

Multiple physical jobs can take its toll on the person, it can be a lot jumping from one place of work to the other. That is why i like a second job to be something one can do over the internet, maybe utilizing a skill you have, running an e-commerce website or other whatnots. If it is something you can structure to your own timing and advantage, then it would not be as draining as multiple brick and mortar jobs and it can settle some of your bills.

Yup, that is a good approach, where we can shape our working hours for a second job according to our own ease, is better than following a strict schedule, and if the work environment is also toxic in either of the two jobs, then things become more difficult.

Because I realized this a long time ago that, if the work environment is friendly, then the stress and fatigue of work is very low compared to the toxic ones. But these days, everyone is doing two jobs; some are finding flexible ones, some are taking whatever they can get.

[terrific]

First of all I will like us to know the reason why we save is for future purposes.. example when an emergency expenses comes up such as medical bills like surgeries or house expenses like burst pipe or roof leakage and no member of the house has savings that means they are in big trouble,it has automatically become a big problem.

There are types of savings and that's for the assurance that we get to pull something in those events.
One of it is what you've mentioned about the emergencies. That's the emergency fund that we have to allocate our money.
It's not only for ourselves but for the people whom we love if you're still a single person. But if you're married, your priority changes and that's your partner and if with kids, then them as well.
Don't let your savings be touched by the people that surrounds you and asks to borrow that money from yours because of the beautiful and touchy story they tell you.

[snowpega]

First of all I will like us to know the reason why we save is for future purposes.. example when an emergency expenses comes up such as medical bills like surgeries or house expenses like burst pipe or roof leakage and no member of the house has savings that means they are in big trouble,it has automatically become a big problem.

This can have many reasons depending on one's plan because everyone has different goals and plans, which is why they start to save their funds accordingly. As you may have a different plan, and I also do. Other than this, i beleive that we should try our best to keep saving our savings money way from fulfilling any desire or need, but if we need emergency funds, then we should take a little part from the savings fund,s and after that we should try our best to fill that part as soon as possible.

And we should try more to use those funds that we are earning on a daily basis, and we should keep investing earned funds in a safe place that can help us to grow our earnings that in turn help more to fulfil daily needs and offer a little financial freedom. Well, this is my point of view on your question, and you may have your own point of view on this, which can be possibly different.

[whiteblue]

First of all I will like us to know the reason why we save is for future purposes.. example when an emergency expenses comes up such as medical bills like surgeries or house expenses like burst pipe or roof leakage and no member of the house has savings that means they are in big trouble,it has automatically become a big problem.

the problem of the use of savings funds is commonly known and also depends on what the subject wants to use it for, which is the problem in the current situation where income is no longer sufficient for our basic needs in everyday life that is a problem, different from the past where we had a salary and used it to meet our needs but still had spare money to save, but now it is not, more deficits than surpluses to get additional funds to save, such is the situation and conditions.

[barbara44]

the problem of the use of savings funds is commonly known and also depends on what the subject wants to use it for, which is the problem in the current situation where income is no longer sufficient for our basic needs in everyday life that is a problem, different from the past where we had a salary and used it to meet our needs but still had spare money to save, but now it is not, more deficits than surpluses to get additional funds to save, such is the situation and conditions.

Our income not being enough for our living is a wide problem all around the world and it shouldn't be. There are for some reason (which I will never understand) people who support such a thing, like even poor people who support policies that doesn't help them, and help the rich, and weirdly enough they support those rich people.

However, this can't sustain, a world where 90% of the people lives just paycheck to paycheck or in poverty isn't a good number, 50% would make sense, but 90% isn't realistic to sustain. So for that reason we need to make sure that there are policy changes, and for this to happen we need USA to lead because they are worst at it, they rather have trillion dollar companies while people die from lack of medical help, so they have to fix some stuff first.

[Oluwa-btc]

Then the years turned into decades. We've now though reached a point where most people can't save anything.
New stats in Greece show nearly 90% of households can't even save a single euro after the monthly expenses.

Dependence on wages and salaries can't save one from unpredictable circumstances because it's been recycled to meet up with unexpected demands and you'll actually get a problem with wanting to save. But then it's a medium to take heed of opportunities that'll be profitable so you can meet up with a particular savings plan and target. But basically one can actually achieve a successful savings plan with discipline, stipulate some amounts and follow it up then create a medium for constant money flow.

[ovcijisir]

Multiple physical jobs can take its toll on the person, it can be a lot jumping from one place of work to the other. That is why i like a second job to be something one can do over the internet, maybe utilizing a skill you have, running an e-commerce website or other whatnots. If it is something you can structure to your own timing and advantage, then it would not be as draining as multiple brick and mortar jobs and it can settle some of your bills.

Yup, that is a good approach, where we can shape our working hours for a second job according to our own ease, is better than following a strict schedule, and if the work environment is also toxic in either of the two jobs, then things become more difficult.

Because I realized this a long time ago that, if the work environment is friendly, then the stress and fatigue of work is very low compared to the toxic ones. But these days, everyone is doing two jobs; some are finding flexible ones, some are taking whatever they can get.

Im not sure if doing two jobs is sustainable long term. Even in a desk job, or work from home job the deadlines have to be met and there is some kind of stress. All of that takes a toll on person. Ten or twenty years of such lifestyle can wreck ones spine. The best solution is to have source of passive income if possible.

[Fiatless]

Controlling inflation and market regulation is the solution to this problem. Creating more business and job opportunities is not the problem because if there is more money that you can't save, it means nothing. There are places where you earn less, but the cost of living is not so expensive, everyone leads an average life, not minding if they are rich or poor. Places like that, the inflation is controlled, so people who earn less or big can save a percentage. from their income.

This is why workers should not be moved by the high income promised by overseas jobs. High taxes and costs of living in these high-paying countries would make the workers have less income. But in some countries, workers will survive with low salaries because the cost of living is low. In such countries, workers can earn as low as $40 per month and still live comfortably.   

[Berry2d]

Saving can only work when there is constant source of income, most people are willing and ready to save but because they lack the possible source of income that can feed them and have little for saving it them becomes very difficult to achieve that. Although some are opportune to be in good paying jobs but because they dont see saving for the rainy day as a possible option, it them become a wasted effort asking them to save. But many finds it difficult saving because they don't have

[Synchronice]

It used to be that while wages would never get someone rich at least it was possible to eventually buy some property after years of work. Be it at least a house. A house doesn't have any productive capabilities, it's just a roof by pure material standards.

Then the years turned into decades. We've now though reached a point where most people can't save anything.
New stats in Greece show nearly 90% of households can't even save a single euro after the monthly expenses.

What is the result of that? The people are now more than ever liquidating family owned property and businesses to just sustain themselves. Which turns out to be catastrophic for property ownership because it gets very centralised. Banks repossess properties en masse and foreign investors scoop it up also en masse. Locals end up opening less and less of their country's land every year.

What would a people first government do in this case? Create social housing in order to lower market prices and make it more affordable? Mandate higher wages? Create more housing by giving more permits?

No. We just see inaction. And this inaction of course only helps the large owners.

Most people can't save anything because most people do unskilled job, get paid minimum salary and also have some fun every weekends, so they don't have any money left at the end of the month. If you really want to save money, then you can save a couple of hundred euros every month, even with a minimum salary in countries like Germany for example (I do not speak about Bulgaria, Hungary and other EU countries where salaries are still extremely low).

When it comes to housing, Soviet Union had the best approach. Jobs were giving people houses if they were working for 5-10 years in the same job. There was never such a program in Western civilization, that's why so many people don't have houses and live in a rent.

[whiteblue]

the problem of the use of savings funds is commonly known and also depends on what the subject wants to use it for, which is the problem in the current situation where income is no longer sufficient for our basic needs in everyday life that is a problem, different from the past where we had a salary and used it to meet our needs but still had spare money to save, but now it is not, more deficits than surpluses to get additional funds to save, such is the situation and conditions.

Our income not being enough for our living is a wide problem all around the world and it shouldn't be. There are for some reason (which I will never understand) people who support such a thing, like even poor people who support policies that doesn't help them, and help the rich, and weirdly enough they support those rich people.

However, this can't sustain, a world where 90% of the people lives just paycheck to paycheck or in poverty isn't a good number, 50% would make sense, but 90% isn't realistic to sustain. So for that reason we need to make sure that there are policy changes, and for this to happen we need USA to lead because they are worst at it, they rather have trillion dollar companies while people die from lack of medical help, so they have to fix some stuff first.

It seems the problems in this world are almost the same as in my country. Previously, a worker's salary could support a family decently and still have savings. But with inflation, standards have begun to decline, and today's salary is only enough to support one person. This is clearly different. This is indeed influenced by inappropriate economic policies that promote economic equality in society. Furthermore, as the population increases, job growth is dwindling due to technological advances that increase the labor pool, which also leads to lower wages.

Actually, there's no problem supporting large companies because they can absorb a significant workforce. However, companies must understand that they shouldn't take excessive profits to enrich themselves.

[Mate2237]

This situation you are making mention of doesn't apply to only Greace bot that is the reality that we find on ground. This situation may not be far fetched from the ever rising inflation rate that is cutting across the world. Most governments are struggling to deal with inflation which keeps rising every day. As inflation rises there is a drop in the standard of life because the currency loses value over time in terms of its purchasing power.


The quality and standard of living is one thing that is directly affected by the impact of inflation because, most working class citizens especially civil servants who depends on salary you can see that they barely survives because at the end of the day all their salaries go into expenses and paying for Dept.