UK goes from footloose to frugal

wolvoman

mbga9pgf wrote: »

Yeah. 85% of take home last month.

F*ck the economy. Im saving for a hooose.

Bejesus, 85%???? Blimey.

How?

Are youi renting a tent? Are you planning on buying a mansion?

DaddyBear

wolvoman wrote: »

Bejesus, 85%???? Blimey.

How?

Are youi renting a tent? Are you planning on buying a mansion?

Either living at home, on the street or taking home £10k a month.

bubblesmoney

keynesianism is just a perpetual ponzi scheme of taking on more debt to clear existing debt in reality as everyone forgets the keynesian bit that asks you to pay off the debt in the good years but that doesnt happen in reality. debt is just pulling forward productivity from a later date but when that debt has to be paid off then there will be a deflation from the reduced liquity. just basic maths, people trying to deny that deflation will happen by taking on more debt are just pushing the parcel onwards for a bit longer. sooner or later one has to repay the debts or default and either way one faces the music then with ensuing reduced liquidity and fall in output.

if i have 10,000 i have the 10,000 ....
but if i have 10,000 and borrow 90,000 i dont become worth 100,000...
i become worth less than 10,000 because when i pay the interest on the 90,000 i will eventually have less than 10,000 left so debt will eventually lead to deflation when it is paid off.

of course the above example is simplistic. it also depends on whether the debt is used for productive purposes or just for consumption. if used for productive purposes then debt can be useful but if just used to fund consumerism then the ensuing deflation will be even worse.

debt taken on to fund factories which have a profit potential will be useful for the economy. debt taken on to sustain property prices and bank holdings in MBS etc is just plain stupid as it is not productive. same goes for credit card debt etc. same for taking on debt to fund ludicrous welfare bills with no return on them is unsustainable in the long term as it will just chase away the more productive people elsewhere when they get fed up of funding the ponzi scheme out of which they have no hope of getting any use for themselves later in life as the scheme is unsustainable in the long term.

taking on more debt is like throwing a water baloon up each floor each time to prevent deflation, sooner or later someone is going to drop the baloon or there wont be anymore floors to pass the parcel to, then the ensuing splash will be much worse for all. i wonder when they will get some sensible heads on the finance depts of govt who will rein in unsustainable deficit spending. one can dream i guess but doesnt look likely to happen anytime soon by the looks of it.

btw what does the saving percentage mean. how is this saving percentage calculated in reality in the uk??? in the usa the saving percentage is 6% or there abouts but that is the fudged number where 'savings' means what is not used for consumption. so for example if one reduces their debt by paying it off a bit it is still counted as savings in the bigger scheme of things. so if i have a debt of 100,000 and pay off 1000 in the govt statistics it is logged as a savings of 1000, while in reality all i have done is managed to reduce my debt to 99,000. so savings can mean a lot of things, its the detail in the statistics released that matters.

CLAPTON

bubblesmoney wrote: »

keynesianism is just a perpetual ponzi scheme of taking on more debt to clear existing debt in reality as everyone forgets the keynesian bit that asks you to pay off the debt in the good years but that doesnt happen in reality. debt is just pulling forward productivity from a later date but when that debt has to be paid off then there will be a deflation from the reduced liquity. just basic maths, people trying to deny that deflation will happen by taking on more debt are just pushing the parcel onwards for a bit longer. sooner or later one has to repay the debts or default and either way one faces the music then with ensuing reduced liquidity and fall in output.

if i have 10,000 i have the 10,000 ....
but if i have 10,000 and borrow 90,000 i dont become worth 100,000...
i become worth less than 10,000 because when i pay the interest on the 90,000 i will eventually have less than 10,000 left so debt will eventually lead to deflation when it is paid off.

of course the above example is simplistic. it also depends on whether the debt is used for productive purposes or just for consumption. if used for productive purposes then debt can be useful but if just used to fund consumerism then the ensuing deflation will be even worse.

debt taken on to fund factories which have a profit potential will be useful for the economy. debt taken on to sustain property prices and bank holdings in MBS etc is just plain stupid as it is not productive. same goes for credit card debt etc. same for taking on debt to fund ludicrous welfare bills with no return on them is unsustainable in the long term as it will just chase away the more productive people elsewhere when they get fed up of funding the ponzi scheme out of which they have no hope of getting any use for themselves later in life as the scheme is unsustainable in the long term.

taking on more debt is like throwing a water baloon up each floor each time to prevent deflation, sooner or later someone is going to drop the baloon or there wont be anymore floors to pass the parcel to, then the ensuing splash will be much worse for all. i wonder when they will get some sensible heads on the finance depts of govt who will rein in unsustainable deficit spending. one can dream i guess but doesnt look likely to happen anytime soon by the looks of it.

btw what does the saving percentage mean. how is this saving percentage calculated in reality in the uk??? in the usa the saving percentage is 6% or there abouts but that is the fudged number where 'savings' means what is not used for consumption. so for example if one reduces their debt by paying it off a bit it is still counted as savings in the bigger scheme of things. so if i have a debt of 100,000 and pay off 1000 in the govt statistics it is logged as a savings of 1000, while in reality all i have done is managed to reduce my debt to 99,000. so savings can mean a lot of things, its the detail in the statistics released that matters.

as you say the above is a bit simplistic

just write the equations down plus the supporting evidence.

PasturesNew

I have never saved... I've lived frugally, hoping that when the next disaster finds me I can cover it. Usually I am lucky, sometimes not.

bendix

Always been a saver. Always will. Currently put away 60-70% of my income. There is fundamentally something wrong about spending all of - or in the worst cases, significantly more than - your income.

MrDT

DaddyBear wrote: »

Either living at home, on the street or taking home £10k a month.

Covered many times, he works in the armed forces and has cheap accommodation as a result.

I saved over 60% of my take home last month. Some people will assume I live with my parents. I don't, haven't since the age of 18. I rent, privately. Not a tent either :rolleyes:

SingleSue

I have always saved for the items I want, never taken credit for them (even in my good times) or spent more than I had.

If the money wasn't in the bank, the item stayed in the shop.

Edit - Apart from our mortgage!

lemonjelly

I've always saved too - even when I got a paper round I used to save some of it.

Had various (sometimes not nice) part time jobs since I was 16.

For the last 4 years I've had 2 jobs (though there have been a couple of gaps in between main jobs). Sometimes, that 2nd job has got me out of a potential hole! Especially seeing as employers can sometimes drag their feet during recruitment, or waiting for CRB's etc. 2nd income has been trickling into a regular saver of some sort.

I save what I can. I try to live frugally, but not unnecessarily so. If it ain't broke, I can't bring myself to throw it away.

Purchases I save up for, though having savings means I don't always have too.

At the same time, if there is something I really want, I can have it. After all, that's what the savings are for! Money is only any good for spending! I do tend to contemplate most purchases a lot though, balancing how hard I've had to work for the dough, against the alleged value of the item/service. If to me it is then worth it, I'll buy it. If not, I walk on.

I've never had a credit card, never had a loan, never bought anything on finance.

Then again, my line of work puts me off that!

geoffky

I have never had credit and would not sleep at night if i owed thousands..