How much do people really understand about how to save?
Final thoughts (please read disclaimer below first): The more responses I get, the more I realise that people don't realise that people who manage to save on the same pay are just choosing to forgo some level of comfort. Again, still not saying you have to save, just saying people usually understand the trade-offs, essentially, you can't have your cake and eat it. It's just dependent on what they are willing to forgo in comfort, convenience or luxuries except those who say they can't save think their comfort is an essential. Again, not everyone can actually afford life and I'm not saying people should save*, it's your money, do what you want with it. I'm just saying that* some people who could save think there is no way of doing so but quote their comforts as reasons, which isn't actually a basic need (which is what people who actually can't afford life talk about).
Original post:
Coming from a post asking how anyone is saving on a "decent wage" (their words), I genuinely wonder if people are just venting or really don't understand how some people save and others don't (on the same wages).
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Disclaimer: This isn't about people who literally can't afford to live on what they're earning. There are people who literally cannot earn enough to eat, be safe, have a roof over their heads. Those people need and deserve more support, this is not about those people actually struggling.
Edit: rightly pointed out to me that disabilities and health problems mental and physical will also affect your ability to do what I say below
And, also, I'm not saying you "should" save. I'm only asking whether people understand that those who are saving are choosing to give up a certain amount of comfort for it. I'm not saying anyone is "supposed" to save. You do you, I'm not judging whether you prefer to increase your quality of life. That's a personal choice.
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HOWEVER if we now only count those earning a decent amount, there are 3 types of people (all are valid, it's not an attack on any one):
- People who spend their money on comforts and don't save (out of choice). They realise they aren't saving in return for better life/comfort right now.
- Those who do save (no matter their income) have chosen to live below their means, a lower lifestyle than they could have. They do this know that it's in return for savings, they are giving something up.
- People who "can't" save, they actually mean that they can't have the lifestyle AND save. These people spend more than they absolutely need to. They are spending more than the other type of person.
- I'm not saying "cut out the avocado toast". I'm saying, your choice of home, your choice of transport, your choice of time spent on stuff all adds up. You can live by walking or cycling to work, or moving to a cheaper area, or spend time working on a shithole of a house to be able to buy... It's all choices. You may not like that it's more work or harder to do, but if it's not impossible, then you're essentially choosing lifestyle over savings, which is fine, but that's balance everyone else who is saving also calculated, they lowered their lifestyle to increase savings.
In the first two, you're choosing a balance you feel comfortable with and both ways are valid. However, the 3rd lot is the one that confuses me. It seems like they don't understand that people tend to live below their means if they want to save.
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So my genuine question is: I thought this was obvious but those posts asking how people are saving. It gets me wondering if those people are just venting or do they really not know how people are saving?
EDIT: not really surprised at the downvotes, I'm more interested in the answers.
EDIT2: I think people are mistaking my point as an attack on those who picked lifestyle over savings. It's absolutely fine to spend, I'm only saying most people understand that you can't have your cake and eat it. But those asking how to save have not figured that bit out... Or are just venting. They want the comfort and the money saved.
Edit3: the irony of people are telling me "... it's not possible unless I..." yeah... that's literally what saving is, giving up comfort. Also, it's just the point that specific people that are earning fine can't fathom how people on the same pay can save that confused me. But I think the comments are pretty clear seeing the split.