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Saving is not the Key to Financial Success
Topic Started: 23 Sep 2014, 07:01 AM (1,558 Views)
GloomBoomDoom
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Veritas
23 Sep 2014, 12:18 PM
Peace of mind.

Also, being a tight arse is basically a psychological condition.

If you have ever encountered tight arses you will know that their reluctance to spend is usually not logical but something that was inculcated into them or the result of DNA.
I think it's more a form of hoarding that is in the DNA. It can be expressed in different ways but hoarding money is better than hoarding used toilet paper. :D
MSE
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peter fraser
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hoofarted
23 Sep 2014, 01:16 PM
Just because I got it, does not mean I am stupid enough to take it. I would very much rather save my money in paid off debt than in a saving account. The point is, it is easy to see a positive bank balance and blame the worlds financial crisis on people who do not spend it when you turn a blind eye to someone who has 500K paid off of their mortgage... Same thing.
I don't believe that he is blaming savers for anything although it is better for the economy if they spend it. He is suggesting that people invest in their own education to make themselves more productive and more valuable, and instead of putting all of their savings into a bank buy productive assets that can or should earn more than bank interest.

Someone paying into a mortgage offset is really paying off a debt, which is in my view putting money into an asset.

I personally don't have an issue with people who save in a bank account. They may not be optimising their future finances, but they may have very good reasons for what they are doing. It's not other peoples right to criticise others for their style of asset management.

PS if you want a higher LVR with no LMI I think that Westpac has a 85% no LMI offering at the moment and Citibank - although they may have closed that offer.
Any expressed market opinion is my own and is not to be taken as financial advice
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Garden Variety
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peter fraser
23 Sep 2014, 07:01 AM
Investment (not the financial type you’re probably aware of with regard to buying stocks and bonds) is spending, not consumed, for future production. When you invest in your future you build an intangible (or tangible) asset that (likely) makes you more valuable. In other words, when you invest in yourself you make your future production more valuable which makes your future income more valuable which allows you to save more of your future income in the future.
Sounds like complete bullshit to me ... but on the off chance i,m too thick to figure it out
... can anyone splain to me what 'invest in your future' means?

also, if saving is no good, then why does this fella suggest that investment lets ya ,save more of your future income in the future,?
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skamy
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Drgonzo
23 Sep 2014, 08:11 AM
i dont understand the notion of saving and having a fat bank balance but living frugally - what is the point?
There comes a time in life when you watch how the finances of others are panning out and you can see that you cannot live on the never never and expect no detrimental consequences. It is called growing up. You will see that organising finances reduces stress and actually lead to more happiness. There are often big come downs after silly spending and they are just not worth it IMHO.
Most people are saving for something whether it is a holiday, future school fees or retirement.

It can also be quite fun to live frugally for a while, it helps get priorities to the forefront.

Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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