Comments on: Savers Losing Out in the Current Economy

By: Weekly Roundup - Hurricane Ike Cleanup Edition | Cash Money Life : Cash Money Life

Sat, 03 Jan 2009 00:30:21 +0000

[...] Savers Losing Out in the Current Economy. Inflation is eating away at the relative value of your money, so even if you are saving, you may be losing purchasing power. [...]

By: How Do You Deal With The Recession? | MomGrind

How Do You Deal With The Recession? | MomGrind — Mon, 06 Oct 2008 08:01:23 +0000

[...] Fears? Don’t Let The Whingers Get You Down The Sky Is Falling Or Is It A Financial Crises Savers Losing Out In The Current Economy Not Plugging My Ears Or Covering My Eyes The Financial Crises Will Be Harmless, Until It Kills Us [...]

By: miranda

miranda — Sat, 13 Sep 2008 19:41:52 +0000

Thanks for sharing your thoughts, Richard! I agree that not having any more income when you are retired won’t work. And, of course, I agree whole-heartedly about debt. We should avoid it wherever possible.

Planning is important, and it is vital to facing the future.

By: Richard X. Thripp

Richard X. Thripp — Sat, 13 Sep 2008 11:58:44 +0000

Unfortunately, since we have a fiat currency that’s being expanded at a rate of 15% a month in “national debt” to the “Federal” Reserve, our money becomes progressively less valuable. It’s only a matter of time before we have hyper-inflation like post-war Germany and our money is replaced by Ameros which will be just as bad.

While the international bankers continue to gain, people like you and me with $15,000 in our savings accounts lose, because all our hard work is gradually being erased.

I don’t believe in needless debt. Putting your money into real property like a house, a car, a printing press, gold bullion, or something you need is a great idea, and this is a great time to do it. That means BUYING those items; not renting or leasing. Mortgages are okay if they’re necessary. But saving the money for retirement, if retirement is more than ten years off, is a bad idea because by then our money will be valueless.

The real way to plan for retirement is to build passive streams of income like royalties or websites with affiliate advertising, which can continue on their own when you stop working. Saving lots of money now and then making no new money after retirement just won’t work.

By: Alicia, Mental Health Notes

Alicia, Mental Health Notes — Fri, 12 Sep 2008 20:59:20 +0000

Ah, yes! Retirement is definitely another concern. If I continue freelance writing and editing forever, that is definitely something I’ll need to look into.

By: miranda

miranda — Fri, 12 Sep 2008 20:42:33 +0000

Thanks for your thoughts, Alicia! Trying to save money is a great goal, and one that eventually leads to financial freedom. Unfortunately, in this economy with inflation what it is (especially with food and fuel), that goal can also be difficult to meet.

An emergency fund is good, but most of the reason I save is to also build up a good amount of money for retirement later, so that I have something to live on.

By: Alicia, Mental Health Notes

Alicia, Mental Health Notes — Fri, 12 Sep 2008 20:38:17 +0000

I am a saver in that I don’t spend what I don’t need to spend. With the way the economy is right now, my goal is to make enough money to pay my bills, eat, and put gas in my car – not learn about all the kinds of savings/investment plans out there. I just don’t have the income for that (and I’m more than a bit jaded with our economy).

I look forward to the day when I’m financially stable enough to be able to deduct money from my paychecks and put that money in some kind of savings plan (not so much to increase wealth, but rather to have an emergency fund, like the commenter above said). Will it ever come? I don’t know. If it doesn’t, it won’t be for lack of trying on my part, ha.

By: miranda

miranda — Fri, 12 Sep 2008 16:59:45 +0000

I see, Jennifer. That’s a pretty good plan.

Thanks, FFB, for weighing in. I am really rather annoyed that our leaders continue to encourage a culture in which we are supposed to be in debt. It’s “good for the economy” in its current form if most of us are in debt just enough so that we keep making payments and saving very little without actually going under.

By: Jennifer Gniadecki

Jennifer Gniadecki — Fri, 12 Sep 2008 16:43:24 +0000

I should have specified. Right now we only have an emergency account of $1k to get us through paying off debt.

Half of it lives in the Bank of America account and the other half (plus an extra $200/month) goes into an ING account at 3%

The problem is if something happens and we really need that money, 3-5 business days from ING is not acceptable, so some has to sit in BoA at the crappy interest rate.

Or so I think, anyway LOL I’m no expert!

By: FFB

FFB — Fri, 12 Sep 2008 16:42:27 +0000

I’m a saver. The low rates hurt. At least CD rates have gone up a little. How is it that encouraging saving isn’t a good thing? Oh yeah, that means not spending everything you have on the newest stuff!