Category Archives: Economics

Can you ever save too much?

  

Picture courtesy of: Thinkupthemes

Saw this news heading on the internet of a local Dutch Newspaper ‘De Telegraaf‘, “Wie in de ogen van de belastingdienst te veel spaargeld heeft, moet flink betalen.” Translated: Who in the eyes of the Tax Man saves too much money, must pay dearly. 

Today, there are all soorts of advice being given about savings… From be wise with your saving and pay off your debts first, find ways of hiding it from the Tax Man, to no longer trusting banks… And the list goes on! 

But I have some questions:

  1. Why does the savings account have little value in today’s economy and/or society?
  2. Does it make sense to save for a rainy day any more?
  3. What is considered too much savings?
  4. Are we advising people to clear their debt, to only once again get back into debt due to the lack of savings?
  5. What is today’s definition of saving and is it only considered to be part of a short term Financial Strategy?

Hmmm… My apologies for getting carried away with questions, but when one discusses Personal Finance, Savings is one of the pilars of having a healthy financial out look. 

So now what and where do we go from here? Oeps… Here I go with more questions!

Maybe someone reading this, cares to share their view on the matter?

Helping-Another-Discover-Financial-Independence

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Re-INVENT…. 

Yesterday I heard the word ‘Re-Invent‘ and it triggered a thought within me… 

Lets be honest; we live in an age where there is nothing much left, to really ‘Invent’! We’ve exhausted the fancy challenges, of thinking outside the box! But what if we stopped dreaming up ways to think outside the box?

  

Look, with Personal Finance there is nothing that will ever make it any more or less ‘sexy’… That is a given!  But why is it still so complex? The other day the Dutch National Institute, which advises the everyday man on how to go about their Personal Finances, was alarmed by the fact that people were still saving so much in The Netherlands, even though savings rates were far lower to rates of Personal Loans. Their sentiment was, people are now choosing to use their ‘Emotions’ instead of their ‘Understanding’! But aren’t we suppose to use emotions (intuition) to keep us alive?

The truth of the matter is… If we are now in the age of ‘Re-Inventing‘, then people are no longer looking for the fancy Out of the Box advice from the experts. Many have had, since 2008, to endure such complex Financial situations and therefore who can blame them for making Personal Finance decisions with emotions! 

As I started out by saying… I was triggered to wondered, could the word ‘Re-Invent’ also be interpreted by say, make things ‘SIMPLER‘! 

Re-Inventing (Simplifying) our lives can mean, if ‘Savings’ matches your objectives, gives confidence and brings comfort to you and your family, while paying off loans on a monthly basis … Vice versa for persons who want to pay off loans first and then save. Then do it! 

Advice is good, but ther are times to use your emotions and simplicity… Because at the end of the day, it’s ‘Your Re-Invention’!

  

Helping-Another-Discover-Financial-Independence

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