Lost Concept Of Saving For A Rainy Day

Where has the concept of saving gone? Globally there is an evolving problem with fiat currencies and their decline leading to citizens struggling to achieve their buying power through credit.

Credit is the global epidemic for declining household savings. Through credit debt is encountered and there is not a limitation in how debt can appear or increase. Inflation is the root of all debt whether it be a national economic problem or a household economic problem. Buy more to gain more has been the message provided to the ages of societies globally.

Savings is a hard concept for today’s youth to grasp when the example that is provided is an image, words, and actions which are contrary to saving. Glamour is not a teaching of discipline or responsibility, and is one that mainstream media has idolized. Add governmental practices preaching a similar message, live beyond your means and there is credit to bail you out seasoned with some reality shows for you showing you its OK and you have epidemic of losing retirement to the battle to debt.

With social retirement systems, Social Security Administration has increased over the years the age of retirement and adding increased taxes has meant many having to work beyond their retirement year to provide income. Provision of which has have been passed since 1983 with various amendments H.R. 1900 raising the full retirement age beginning with people born after 1938. Combined with proposals asking for increases to retirement yeas going through every several years . Measures that are being considered are in response to Social Security trustees claiming the Fund will be insolvent come 2035. Resulting in savings plans coming under fire as taxing becomes more stringent with employers and employees.

In the U.S. origin of the saving message, it publicly started during World War II with government war bonds campaign with the then War Advertising Council and encouraging American to buy war bonds to support the war. After 38 years the the campaign ended with millions of Americans having purchased $35 billion in War/Savings Bonds.

The rainy days basically came out of lack of fiscal responsibility at a national level to the household level. Adding to the problem of saving is the fact that global fiat currencies have been devalued. Their actual consistency of the coins as legal tender have been devalued from the point of they are now a mixed metal on the world market. Pricing of the metal and the weight of the metal in the coin is the actual value of the coin and at the expense of governments manipulating the tender to adjust for inflationary practices.

How do we regain our financial position as a household or individual under the current difficult economic times? Rebuild credit out of restructuring debts which lead to minimizing interest rates. All unnecessary expenses which create additional debt will require creating cutbacks or elimination. This is the definition of savings.

Do not implement measures which can lead to bankruptcy for they will only result in ruining credit in the long run. Responding to financial difficulties of loss of income does not need to result in cutting the losses and a quick fix. It does not take long to create a deficit situation but it does take some time to rebuild credit or savings.

In theory the practices of which were employed generations ago in terms of creating income out of income is no different than today. Do not live beyond your means but budget your means of living. This is the savings standard that should be employed as a practice under recessionary or deflationary times.

With every approach to savings also comes investment practices or methods of which are employed to increase income position. Currently, we see with banks and global financial services implementing illegal practices to gain wealth at the expense of investors. This did not happen today but has been ongoing for quite some time. Therefore, there are areas of investing where a return can be provided. Aged commodities recognized as valuables, and rare coins are good examples of positioning for investment returns. Time is the factor in these types of investments as much as the age of the item and its return.

Saving is a timeless approach but getting there could not be more timely when there is significant uncertainty. If there is a hobby or something of which you enjoy spend some time and look into the option of it as an income producer. The same interest that determines the value of the commodity you hold is the same with your talent or hobby.

Income is not a savings approach but a necessity for a livable standard. Out of the practices that are discovered and later employed will determine the standard that can be attained and reached.

Make the cuts with decisions to improve saving potential and you will resolve your household inflationary problems.

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