many people like to save money for emergencies, or in preperation of makind a majorpurchase; others don't belive in saving, they say that money loses its buying power very quickly, so it's a good idea to spend money as soon as it's earned.
2007-11-08 03:17:28 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Saving money is always a good idea. No matter how much money you make, you should be saving a standard percent of your income every month. While I don't agree that money loses its buying power, what are you going to do when you retire and you have spent all of the money you have ever made?
2007-11-08 03:23:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If placed in a bank account with interest, your money does not lose buying power. It gains slightly (take the interest rate minus inflation which is usually between 2 and 3% for the net change). It's good to save and have some liquidity for emergencies, but it's better to take the rest and invest it in something with a positive return.
2007-11-08 11:25:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Money you save only loses buying power if you don't invest it (like burying it in a coffee can in your back yard). You should always have 3 to 6 months of expenses in liquid assets (such as a money market fund) for emergency expenditures. This is one of the key factors in avoiding going into debt.
So start saving!
2007-11-08 11:27:25 · answer #3 · answered by The Professor 5 · 0⤊ 0⤋
TR has the right idea as well as Aesop whose grasshopper and ant fable depicts life.The value of money is all relative to the present time. Earnings go up, prices go up. Demand goes up Prices go up. Demand levels or decreases prices go down. But remember regardless what politicians promise the true Social Security is what wealth you, yourself, accumulate during your working life. That means saving, investing and sacrificing. Don't end up bagging groceries after retirement just to subsist.
2007-11-08 11:38:06 · answer #4 · answered by googie 7 · 0⤊ 0⤋
Saving money is so much better. If you spend, you can't get much out of it only the benefits of the items you get. If you save, you can get enough out of it and you *can* have money earning a specified amount of interest, that can be used when needed.
2007-11-08 11:35:20 · answer #5 · answered by my life is a labyrinth 6 · 0⤊ 0⤋
People who say it's a good idea to spend money as soon as it's earned are going to have interesting retirement years.
2007-11-08 11:29:14 · answer #6 · answered by Kathryn 6 · 1⤊ 0⤋
saving. you don't ever no what may come up
2007-11-08 11:34:36 · answer #7 · answered by kdrck1 2 · 0⤊ 0⤋