Savings

I am in an Asian Studies class, and we have recently been discussing savings habits in Asia. I’m not sure about the recent facts, but many Chinese families save anywhere from 30% to 50% of their income!

This article shows that most Japanese households save roughly 29% of all disposable income.

Could you for one second imagine if EVERYONE in America saved 30% of disposable income? After the economic bubble burst a few years ago, layoffs would not have hurt as much. Most people would be able to stop working for several months while they find new income streams. Many people would be able to live 6-12 months soley off of “rainy day” accounts without having to touch their longterm savings or children’s college funds.

Savings allows your money to pile up, and if you do not properly manage the urge to splurge, you will end up blowing it in all the wrong places.

I will only spend money on something if I can truly afford it. If something costs $1,000 I can obviously afford it (look to your right). BUT…Notice I do not have $1,000 in my designated spending account. Therefore, I will not buy the product even though I am capable of it.

Too many people THINK they can afford something just because they currently have the money to buy it. Wrong!

Blog posted on: March 11, 2005

8 comments on “Savings

  1. Mike

    A lot of the money Japanese save they keep it as cash in their house, because they don’t trust banks and make little interest. The govenment just changed all the notes to get people to do something with their money.

    Reply
  2. Mike

    100% correct! There is a huge difference between being able to pay for something and being able to afford it. Too many folks simply do not understand this concept.

    Reply
  3. Anonymous

    We have had a deposit account with National City bank in Buffalo Grove Illinois for longer than I can remember. We recently noticed that our deposits were not showing up until long after we deposited the funds. We have a small vending machine business and almost everything we make (cash) goes into the same savings account at National. The deposits have been showing up as late as 30 days after the deposit. The account has a substantial amount of money in it but we don’t need it for anything, so we have not been worried. However, my husband called National City to find out why the deposits were taking so long to post. They explained that the bank was having some issue and going through some changes and it is a temporary problem. This frightened us, so we started reading about National City on the web. We began to realize that National City Bank is in danger of bankruptcy and if not bought will fail. We also found out that their FDIC coverage may not cover all of our deposits, in all of our accounts. We decided to remove all our money and equity loan to a bank other than National City. Closing our equity line with them was easy because it had a zero balance. we simply opened a new line at Chase and closed the National City line. However, moving our savings and other accounts turned out to be very difficult. We wanted to get a certified check for the funds, so we set up an appointment with National City to do. We went in for our appointment only to find out that the bank could not cover our withdrawal. We were told that the bank was having some small and temporary solvency issues and we would be notified when they could either transfer funds or give us a check. I asked if there was any sort of a problem with our account or had we done something wrong. They politely told us they only wished they had more customers like us. However, it has been almost a month and they have not produced our funds. We have started now working with the Attorney General in Illinois to try to recover our retirement savings. It is apparent that National City is going bankrupt and unless they are bought or bailed out we cannot get our money. We are scared to death that National City will loose both our retirement and the money set up in trust for our mentally handicapped adult child. Does anyone have any advice?!

    Reply
  4. Anonymous

    National city’s stock was briefly pulled off of the exchange on Monday. This bank seems to be going under. If your deposits are over the FDIC insured amount, that money will probably be lost.

    Reply

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>