The Need to Keep On Saving Even When Things Get Better
I hope no one reading this listens to some of the pundits saying it’s a lack of trust in the economic system in a country to save up money. That’s really a like, and I hope you don’t fall for it.
Incredibly, American politicians have told the Chinese their people don’t trust the financial system in China, and that’s the reason their savings levels are so much higher than it is in America. Again, that’s a false assertion, and needs to be discarded.
Savings has absolutely nothing to do with whether you trust the financial underpinnings of whatever country you live in, savings is valuable because it provides a cushion when hard times come, and helps you build wealth over the long term if you’re consistent in putting money away.
Many Americans say they’re going to change their spending habits by cutting back on buying goods and putting much of the difference into building a nest egg.
Analysts listening to those assertions say it’ll have to go beyond the present enforced austerity and become a discipline within someone’s life if it’s going to be successfully implemented.
It’s similar to someone having a heart attack and saying if they survive they’re going to change their lifestyles. Once they’re feeling a lot better though, not too long afterwards, usually they’re right back to what they were doing before.
The problem of course is the illusion of health, whether it’s physical or financial, while in reality problems are brewing underneath and ready to emerge again in response to how we live.
In America, and other countries where consumers are urged to spend in order to drive the economy, it’s a bad bit of advice, and something we largely need to ignore for our financial health and wealth.
Even though it’s expected that many will ultimately return to old spending habits, it’ll be less than before and take longer than in the past. Hopefully those reading this will find the discipline to continue on with your frugality while continuing to put money into savings.
Countries like Japan and China, where people save at a much higher level than western countries, didn’t have near the desperation and fear many had who had no savings to fall back on and have learned to live from paycheck to paycheck; this includes those who make a high income as well as low income people.
If nothing else, this great recession should have taught us that we need to have money put away for times like these, and we need to live within our means in order to have the extra money to put aside for when we need it.
Don’t follow the so-called advice of politicians who attempt to manipulate you into consuming for the good of the nation. Other countries do well without that practice, and so can we.
Once we have a solid financial foundation and savings habits, from there we can look beyond to things we may want or need and spend from a position of strength rather than the need to drain the last penny from our accounts or wallets.
