What happens when the majority of households can't save

[Rockstarguy]

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.

The reason why people can't afford to save is that living now is very expensive, and it is not something one can manage while doing some savings; you must definitely give surviving your full attention.

Health care, food, electricity, and means of transportation are very expensive, and there is no way we can bypass all these. By the time you spend money just to survive, there will be no money to save. The government is also complaining that there is not enough money to increase workers' salaries. I think this is a serious issue that the government can't even help with. One has only one option: to look into what can be done as another source of income.

[Zackz5000]

Only saving can't even take us out from poverty we actually need to make some investment, do businesses those who solemnly depend on their monthly salary always end the month with alot of debt.

But saving of money is very important through saving one can start up a business, saving also is not easy it takes discipline to save up money when nobody is saving money in the family the family is already in danger because they don't have any back up money not even an emergency fund to settle up maters when they arises.

[fredericktaylor]

Only saving can't even take us out from poverty we actually need to make some investment, do businesses those who solemnly depend on their monthly salary always end the month with alot of debt.

But saving of money is very important through saving one can start up a business, saving also is not easy it takes discipline to save up money when nobody is saving money in the family the family is already in danger because they don't have any back up money not even an emergency fund to settle up maters when they arises.

You are right, but to save or invest, first of all, dependent income is very important, without reliable income, investment and saving will never be possible. It is very important to have the mindset of investing along with savings to get out of poverty. After using all the necessary money through dependent income, it is very good to use the remaining money for investment and savings, because the future is uncertain. It is very important to have an emergency fund to manage investments continuously. As a result, unknown dangers can be faced and it will be easy to manage investments continuously, as a result, big profits can be expected in the future.

[Royal Cap]

Only saving can't even take us out from poverty we actually need to make some investment, do businesses those who solemnly depend on their monthly salary always end the month with alot of debt.

But saving of money is very important through saving one can start up a business, saving also is not easy it takes discipline to save up money when nobody is saving money in the family the family is already in danger because they don't have any back up money not even an emergency fund to settle up maters when they arises.

In my opinion both things are true. Saving alone does not change anything big and to invest there is no use without saving. Those who have monthly salaries end up in debt often because they have no backup. For instance, I think that it is necessary to build up regular savings, although small, first up, so that you don't have to run in times of danger. If you have an emergency fund, you will be able to keep a cool head, and then be able to make better investment/business decisions. If there is no discipline in the family, even though money comes, it goes away. So it's realistic to go step by step, safety first and then risk.

[Fortify]

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.

There are genuinely plenty of households which would struggle to save anything as they're around "break even" in their budget and could not strip out or increase income for different reasons. That might be the majority of people who are in this difficult situation in fact. However I have seen plenty of households which are likely cashflow positive with plenty of margin, but they are incredibly wasteful with money. It can range from eating far too many food deliveries - which can end up over quadruple the cost compare to making your own meals, to using Uber when they could walk a mile instead, to simply not managing their limited budgets in the most economical way or refusing to move down the cost of living scale, like buying from a cheaper supermarket. Some people create their own crappy situations and stick to them even if they're helped.

[Ultegra134]

There are genuinely plenty of households which would struggle to save anything as they're around "break even" in their budget and could not strip out or increase income for different reasons. That might be the majority of people who are in this difficult situation in fact. However I have seen plenty of households which are likely cashflow positive with plenty of margin, but they are incredibly wasteful with money. It can range from eating far too many food deliveries - which can end up over quadruple the cost compare to making your own meals, to using Uber when they could walk a mile instead, to simply not managing their limited budgets in the most economical way or refusing to move down the cost of living scale, like buying from a cheaper supermarket. Some people create their own crappy situations and stick to them even if they're helped.

I've seen people earn more than I do (not boasting but to add a comparison), have less responsibilities, no rent, cars etc. and a generally "more affordable" lifestyle (in terms of responsibilities and goals), but yet, they barely have any money by the end of the month, I've seen both examples and I'm yet to understand how someone does it (I do, but why?).

In a personal level, I'm someone who travels a handful of times per year, and still manage to save some money. It's certainly not much, and if we were to add more responsibilities such as a kid in the equation, then I'm not quite sure on how I'd respond. Certainly, travelling would be greatly reduced, but still, the expenses are insane. If you do not have a secondary source of income, you're likely doomed into living from paycheck to paycheck.

[GiftedMAN]

But saving of money is very important through saving one can start up a business, saving also is not easy it takes discipline to save up money when nobody is saving money in the family the family is already in danger because they don't have any back up money not even an emergency fund to settle up maters when they arises.

Savings is a good plan because it prepares you for the opportunity to establish yourself in the nearest future and it helps you to prepare a for the unforseen circumstances that may happen in the future but it is important that you understand that savings is not possible when you do not have a stable income coming in from your jobs and if you are not well paid in your job it's not possible to save unless you will have to skip other things which can affect your well being when you don't attend to them. Yeah if you don't have savings it's a to you and the family because in the case of an emergency there is nothing you run back to.

[Zackz5000]

But saving of money is very important through saving one can start up a business, saving also is not easy it takes discipline to save up money when nobody is saving money in the family the family is already in danger because they don't have any back up money not even an emergency fund to settle up maters when they arises.

Savings is a good plan because it prepares you for the opportunity to establish yourself in the nearest future and it helps you to prepare a for the unforseen circumstances that may happen in the future but it is important that you understand that savings is not possible when you do not have a stable income coming in from your jobs and if you are not well paid in your job it's not possible to save unless you will have to skip other things which can affect your well being when you don't attend to them. Yeah if you don't have savings it's a to you and the family because in the case of an emergency there is nothing you run back to.

Having money saved some were makes you not borrow money when some minor emergency occur, it's true it's impossible to save money when we don't have any source of income it must not even be a stable income but there must a means that generate income before saving can be possible, it will take only self discipline to save some money if you are doing a job that you don't get a good pay from because you can't be struggling to survive and think of saving money instead before month end a man will be relying on debt.

[Samlucky O]

Only saving can't even take us out from poverty we actually need to make some investment, do businesses those who solemnly depend on their monthly salary always end the month with alot of debt.

Well in as much as saving can't take us anywhere but It solves a lot of problem when they arise. Saving might not only be for business but it can be used as emergency fund to bail yourself out when such problem occurs.

But saving of money is very important through saving one can start up a business, saving also is not easy it takes discipline to save up money when nobody is saving money in the family the family is already in danger because they don't have any back up money not even an emergency fund to settle up maters when they arises.

A family without nobody saving is already at risk of collapsing when emergency arise. It is good atleast for someone in the family to cultivate the habit of saving atleast to be in a safer side when emergency happen. Although some salary are not enough to save but one must be deciplined to save, no Matter how small it May be, It can be considered as emergency fund at first but after much accumulation and the amount summed up to a significant figures then it can be utilized by starting up a small business.