https://tinyurl.com/z7kxrpwj
How does anyone know whether Kiwis are putting money away for a rainy
day? These folks seem to equate continuation of spending levels as a
failure to save but to do so is farcically simplistic.
Putting your spare cash into a savings account is financial lunacy
because currently (and most of the time) the interest paid is less
than inflation, meaning that those with savings accounts actually
loose money because inflation erodes that value of the account balance
more than the interest it attracts.
Anyone with a mortgage should at least consider making increased or
lump-sum payments provided that the mortgage Ts&Cs permit it
(guaranteed with floating-rate loans) rather than depositing an amount
into a savings account. Equally there are other higher-risk
investment options that allow drip-feed payments. Even Sharesies
allows you to drip-feed deposits to your wallet. These bankers and >Economists can never know whether anyone is 'saving for a rainy day'
by measures such as this.
On Mon, 10 Apr 2023 16:37:06 +1200, Crash <nogood@dontbother.invalid>None of that addresses Crash's points.
wrote:
https://tinyurl.com/z7kxrpwj
How does anyone know whether Kiwis are putting money away for a rainy
day? These folks seem to equate continuation of spending levels as a >>failure to save but to do so is farcically simplistic.
Putting your spare cash into a savings account is financial lunacy
because currently (and most of the time) the interest paid is less
than inflation, meaning that those with savings accounts actually
loose money because inflation erodes that value of the account balance
more than the interest it attracts.
Anyone with a mortgage should at least consider making increased or >>lump-sum payments provided that the mortgage Ts&Cs permit it
(guaranteed with floating-rate loans) rather than depositing an amount
into a savings account. Equally there are other higher-risk
investment options that allow drip-feed payments. Even Sharesies
allows you to drip-feed deposits to your wallet. These bankers and >>Economists can never know whether anyone is 'saving for a rainy day'
by measures such as this.
Bankers and economists tend to use aggregate numbers. At an individual
level there can be a number of reasons for any particular movement of
assets, but when aggregates over the country are looked at, it may be
clear whether in aggregate, there are movements between asset classes
that indicate an increase in savings, such as savings accounts, that
do overall indicate a general trend, particularly given the issue
about interest that you have raised.
Spending above inflation may reflect an expectation of rising prices
leading to buying before goods are needed for example. Bank economists
are not always particularly neutral either - they may well be pushing
for consumers to act in a way that reduces risk / increases profit for
the banking industry.
Rich80105 <Rich...@hotmail.com> wrote:When has Rich EVER addressed anybody's points?
On Mon, 10 Apr 2023 16:37:06 +1200, Crash <nog...@dontbother.invalid> >wrote:
https://tinyurl.com/z7kxrpwj
How does anyone know whether Kiwis are putting money away for a rainy >>day? These folks seem to equate continuation of spending levels as a >>failure to save but to do so is farcically simplistic.
Putting your spare cash into a savings account is financial lunacy >>because currently (and most of the time) the interest paid is less
than inflation, meaning that those with savings accounts actually
loose money because inflation erodes that value of the account balance >>more than the interest it attracts.
Anyone with a mortgage should at least consider making increased or >>lump-sum payments provided that the mortgage Ts&Cs permit it
(guaranteed with floating-rate loans) rather than depositing an amount >>into a savings account. Equally there are other higher-risk
investment options that allow drip-feed payments. Even Sharesies
allows you to drip-feed deposits to your wallet. These bankers and >>Economists can never know whether anyone is 'saving for a rainy day'
by measures such as this.
Bankers and economists tend to use aggregate numbers. At an individual >level there can be a number of reasons for any particular movement of >assets, but when aggregates over the country are looked at, it may be >clear whether in aggregate, there are movements between asset classes
that indicate an increase in savings, such as savings accounts, that
do overall indicate a general trend, particularly given the issue
about interest that you have raised.
Spending above inflation may reflect an expectation of rising prices >leading to buying before goods are needed for example. Bank economistsNone of that addresses Crash's points.
are not always particularly neutral either - they may well be pushing
for consumers to act in a way that reduces risk / increases profit for
the banking industry.
On Mon, 10 Apr 2023 16:37:06 +1200, Crash <nogood@dontbother.invalid>
wrote:
https://tinyurl.com/z7kxrpwj
How does anyone know whether Kiwis are putting money away for a rainy
day? These folks seem to equate continuation of spending levels as a >>failure to save but to do so is farcically simplistic.
Putting your spare cash into a savings account is financial lunacy
because currently (and most of the time) the interest paid is less
than inflation, meaning that those with savings accounts actually
loose money because inflation erodes that value of the account balance
more than the interest it attracts.
Anyone with a mortgage should at least consider making increased or >>lump-sum payments provided that the mortgage Ts&Cs permit it
(guaranteed with floating-rate loans) rather than depositing an amount
into a savings account. Equally there are other higher-risk
investment options that allow drip-feed payments. Even Sharesies
allows you to drip-feed deposits to your wallet. These bankers and >>Economists can never know whether anyone is 'saving for a rainy day'
by measures such as this.
Bankers and economists tend to use aggregate numbers.
At an individual
level there can be a number of reasons for any particular movement of
assets, but when aggregates over the country are looked at, it may be
clear whether in aggregate, there are movements between asset classes
that indicate an increase in savings, such as savings accounts, that
do overall indicate a general trend, particularly given the issue
about interest that you have raised.
Spending above inflation may reflect an expectation of rising prices
leading to buying before goods are needed for example. Bank economists
are not always particularly neutral either - they may well be pushing
for consumers to act in a way that reduces risk / increases profit for
the banking industry.
On Mon, 10 Apr 2023 17:27:35 +1200, Rich80105 <Rich80105@hotmail.com>Numbers that are totalled together - for example banks will report
wrote:
On Mon, 10 Apr 2023 16:37:06 +1200, Crash <nogood@dontbother.invalid> >>wrote:
https://tinyurl.com/z7kxrpwj
How does anyone know whether Kiwis are putting money away for a rainy >>>day? These folks seem to equate continuation of spending levels as a >>>failure to save but to do so is farcically simplistic.
Putting your spare cash into a savings account is financial lunacy >>>because currently (and most of the time) the interest paid is less
than inflation, meaning that those with savings accounts actually
loose money because inflation erodes that value of the account balance >>>more than the interest it attracts.
Anyone with a mortgage should at least consider making increased or >>>lump-sum payments provided that the mortgage Ts&Cs permit it
(guaranteed with floating-rate loans) rather than depositing an amount >>>into a savings account. Equally there are other higher-risk
investment options that allow drip-feed payments. Even Sharesies
allows you to drip-feed deposits to your wallet. These bankers and >>>Economists can never know whether anyone is 'saving for a rainy day'
by measures such as this.
Bankers and economists tend to use aggregate numbers.
What numbers?
At an individual
level there can be a number of reasons for any particular movement of >>assets, but when aggregates over the country are looked at, it may be
clear whether in aggregate, there are movements between asset classes
that indicate an increase in savings, such as savings accounts, that
do overall indicate a general trend, particularly given the issue
about interest that you have raised.
The subject at hand is specifically savings, not assets. As I said in
my original post people may in fact be 'saving for a rainy day' but in
the form of investments that cannot be measured as savings.
Spending above inflation may reflect an expectation of rising prices >>leading to buying before goods are needed for example. Bank economists
are not always particularly neutral either - they may well be pushing
for consumers to act in a way that reduces risk / increases profit for
the banking industry.
Agreed but my point is that the tenor of the article (we are not
saving enough) could well be very wrong because people are saving but
in a form that economists (bank or otherwise) cannot measure.
On Mon, 10 Apr 2023 19:40:24 +1200, Crash <nogood@dontbother.invalid>
wrote:
On Mon, 10 Apr 2023 17:27:35 +1200, Rich80105 <Rich80105@hotmail.com> >>wrote:Numbers that are totalled together - for example banks will report
On Mon, 10 Apr 2023 16:37:06 +1200, Crash <nogood@dontbother.invalid> >>>wrote:
https://tinyurl.com/z7kxrpwj
How does anyone know whether Kiwis are putting money away for a rainy >>>>day? These folks seem to equate continuation of spending levels as a >>>>failure to save but to do so is farcically simplistic.
Putting your spare cash into a savings account is financial lunacy >>>>because currently (and most of the time) the interest paid is less
than inflation, meaning that those with savings accounts actually
loose money because inflation erodes that value of the account balance >>>>more than the interest it attracts.
Anyone with a mortgage should at least consider making increased or >>>>lump-sum payments provided that the mortgage Ts&Cs permit it >>>>(guaranteed with floating-rate loans) rather than depositing an amount >>>>into a savings account. Equally there are other higher-risk
investment options that allow drip-feed payments. Even Sharesies >>>>allows you to drip-feed deposits to your wallet. These bankers and >>>>Economists can never know whether anyone is 'saving for a rainy day'
by measures such as this.
Bankers and economists tend to use aggregate numbers.
What numbers?
increases in term deposits, or at call account balances, or payments
under mortgages; credit card companies will report spending on
groceries; Kiwisaver providers will report on withdrawals and also
money invested. These can be totalled across all New Zealanders and
numbers from different entities combined to get a picture of what New >Zealanders are doing with their money. The do not track a sample of >individuals and analyse their spending and saving patterns, they get
numbers based on total spendig in different areas.
At an individual
level there can be a number of reasons for any particular movement of >>>assets, but when aggregates over the country are looked at, it may be >>>clear whether in aggregate, there are movements between asset classes >>>that indicate an increase in savings, such as savings accounts, that
do overall indicate a general trend, particularly given the issue
about interest that you have raised.
The subject at hand is specifically savings, not assets. As I said in
my original post people may in fact be 'saving for a rainy day' but in
the form of investments that cannot be measured as savings.
Spending above inflation may reflect an expectation of rising prices >>>leading to buying before goods are needed for example. Bank economists >>>are not always particularly neutral either - they may well be pushing
for consumers to act in a way that reduces risk / increases profit for >>>the banking industry.
Agreed but my point is that the tenor of the article (we are not
saving enough) could well be very wrong because people are saving but
in a form that economists (bank or otherwise) cannot measure.
https://tinyurl.com/z7kxrpwj
How does anyone know whether Kiwis are putting money away for a rainy
day? These folks seem to equate continuation of spending levels as a
failure to save but to do so is farcically simplistic.
Putting your spare cash into a savings account is financial lunacy
because currently (and most of the time) the interest paid is less
than inflation, meaning that those with savings accounts actually
loose money because inflation erodes that value of the account balance
more than the interest it attracts.
Anyone with a mortgage should at least consider making increased or
lump-sum payments provided that the mortgage Ts&Cs permit it
(guaranteed with floating-rate loans) rather than depositing an amount
into a savings account. Equally there are other higher-risk
investment options that allow drip-feed payments. Even Sharesies
allows you to drip-feed deposits to your wallet. These bankers and Economists can never know whether anyone is 'saving for a rainy day'
by measures such as this.
On Mon, 10 Apr 2023 17:27:35 +1200, Rich80105 <Rich80105@hotmail.com>
wrote:
On Mon, 10 Apr 2023 16:37:06 +1200, Crash <nogood@dontbother.invalid> >>wrote:
https://tinyurl.com/z7kxrpwj
How does anyone know whether Kiwis are putting money away for a rainy >>>day? These folks seem to equate continuation of spending levels as a >>>failure to save but to do so is farcically simplistic.
Putting your spare cash into a savings account is financial lunacy >>>because currently (and most of the time) the interest paid is less
than inflation, meaning that those with savings accounts actually
loose money because inflation erodes that value of the account balance >>>more than the interest it attracts.
Anyone with a mortgage should at least consider making increased or >>>lump-sum payments provided that the mortgage Ts&Cs permit it
(guaranteed with floating-rate loans) rather than depositing an amount >>>into a savings account. Equally there are other higher-risk
investment options that allow drip-feed payments. Even Sharesies
allows you to drip-feed deposits to your wallet. These bankers and >>>Economists can never know whether anyone is 'saving for a rainy day'
by measures such as this.
Bankers and economists tend to use aggregate numbers.
What numbers?
At an individual
level there can be a number of reasons for any particular movement of >>assets, but when aggregates over the country are looked at, it may be
clear whether in aggregate, there are movements between asset classes
that indicate an increase in savings, such as savings accounts, that
do overall indicate a general trend, particularly given the issue
about interest that you have raised.
The subject at hand is specifically savings, not assets. As I said in
my original post people may in fact be 'saving for a rainy day' but in
the form of investments that cannot be measured as savings.
Spending above inflation may reflect an expectation of rising prices >>leading to buying before goods are needed for example. Bank economists
are not always particularly neutral either - they may well be pushing
for consumers to act in a way that reduces risk / increases profit for
the banking industry.
Agreed but my point is that the tenor of the article (we are not
saving enough) could well be very wrong because people are saving but
in a form that economists (bank or otherwise) cannot measure.
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