SAVING - worth it or a waste of time?

S

Siobhan2012

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I'm doing some research on how people save at the moment. Have you managed to save for something important in your life, a new car, a holiday, sports equipment, a scooter? Would you be on for telling me about the experience of saving? How you did it? What it meant for you being able to make that purchase?

Siobhan
 
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Yes saving is worth it, not so much for buying stuff like holidays etc. but for generating passive income which can then be reinvested or used for buying holidays etc.

This does require discipline, acceptance of delayed gratification and a much higher than average savings rate. In my opinion a lot of people don't save anything like as much as they should/could. They leak money. I read recently that credit unions in Ireland have 12 million in deposits from their 3 million members. So the average member only has 4 quid in savings?

Also, I read stats from I think PTSB that less than 20% of the population save more than 200 quid per month.
 
Hi. What specifically is the nature/purpose of your research? Are you a journo or an undergraduate?

Very basic answer to your question...

My view is that saving is very much worthwhile. Only in the last few days have I checked out personal loan rates and I'm astonished at the cost of finance - given the cheapest (variable rate) product appears to be 11%.
I've never used car finance - and would rather pay cash for whatever I could afford now - rather than take credit and put it on the never-never.

I know that many folks succomb to instant gratification but with personal loans and credit cards, they don't half pay for it!
 
Current research shows that people are saving more than ever now because of uncertainty over what the future holds.
 
I have always saved. Holidays, cars, small house projects are all funded from savings each time it accumulates... How did I do it... from the first pay cheque I received - I put by x amount every month, and have done for years - learnt from my mother. I also did the SSIAs. Saving was a norm for me. Since the cuts etc - my savings have dropped considerably (as my wage did 8-( ) But I continue to save something... all adds up.
 
To be honest, the question "Is Saving a waste of time, or not?" is a very silly question. If you want a sensible answer, you should be more specific about the nature of your research and what you are looking for.

Most of us cannot afford to pay for a holiday or all our Christmas presents out of one months salary so have to spread the cost over the year. its just a sensible approach to money management. Its very boring, but very effective.

As sulo says, you budget every month and you spend less than you earn and you save the rest. Some savings are for annual expenses like Christmas and holidays, some for an emergency fund and some for longer term items to buy a car / house. It should be a lifelong habit that we all have.
 
Few reasons stating why money saving is significant:
1. to be used for emergency funding
2. Saving for retirement
3. save for investing purposes
4. save to buy car or house and secure yourself
5. save for vacations
6. save for sinking funds
 
Found this from the Nationwide UK Ireland:
[broken link removed]

[FONT=&quot]What are consumers saving for and how much are they saving?[/FONT]
· [FONT=&quot]As part of the survey consumers were asked what they were saving for. The largest[/FONT]
[FONT=&quot]proportion indicated that they are saving with a precautionary motive, with 44% saving for unexpected expenses, an increase from the 39% recorded in August. A further 14% claimed they are saving for education/training; 9% said they were saving for a holiday; 9% are saving to buy or renovate a home; 5% were saving for a large consumer purchase and another 6% in case their income falls.[/FONT]
· [FONT=&quot]In terms of how much money people are saving per month:[/FONT]
[FONT=&quot]o [/FONT][FONT=&quot]10% save up to €25;[/FONT]
[FONT=&quot]o [/FONT][FONT=&quot]14% save between €26 and €50;[/FONT]
[FONT=&quot]o [/FONT][FONT=&quot]29% of savers save between €51 and €100 a month,[/FONT]
[FONT=&quot]o [/FONT][FONT=&quot]25% save between €101 and €200,[/FONT]
[FONT=&quot]o [/FONT][FONT=&quot]22% save more than €200.[/FONT]

How can people be content saving so little... 10+14+29=53% of people saving less than 100 euro per month? And there's no way that it's all income related, I know many people who have the capability that don't.
 
burmo said:
How can people be content saving so little... 10+14+29=53% of people saving less than 100 euro per month? And there's no way that it's all income related, I know many people who have the capability that don't.
Click to expand...

Its a bit unwise to assume that lots of people have the capability to save. Without access to their incomings and outgoings you can only make assumptions on someone elses finances. Currently most people I know seem to be living paycheque to paycheque or living off savings. They dont have 100 euro a month to save.

Under normal circumstances I am a saver (Im not in normal circumstances myself right now), but I have learned over the years that many people see saving as the thing to do with any left over money rather than the thing to do as part of the normal monthly income distribution. And these days not too many people have left overs.
 
Respectfully, I know there are people in severe prolonged hardship for the past couple of years... and I know some of them very closely, some of which are in difficult circumstances due to the breakdown of marriages, etc. And there are others on social welfare that are struggling to balance essentials nevermind saving.

My perspective, and it's the way I was raised, is to cut your coat to suit to your cloth. I think it is broadly agreed that things are going to remain very tough for the next several years. And that people are going to be continued to be squeezed more and more due to a static (at best!) wage with increasing taxes and increasing mandatory expenditure such as energy costs, car tax, etc.

With that in mind I think more people need to adjust their lifestyle to suit their new financial outlook. And with this in mind saving <=100 euro a month does not provide suitable buffer for the surprises of life. Therefore when these people need the money it goes on a credit card and a downward spiral begins.
 
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