Has the Electronic Age Compromised Savings?

Discussion in 'General Trading Discussion' started by My401K, Jan 11, 2015.

  1. Profit5500

    Profit5500 Senior Investor

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    People have been less likely to save money due to the advancement of electronics. I do not see the point in having a collection of many technological gadgets when I do not have the money. So many folks got his or her ******s and feel they have to have the latest ones. It is more like a drug that people get addicted to when they take it.
     
  2. Tara

    Tara Active Member

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    I think credit cards have hurt American's thoughts about saving. Once you had to save up to make a major purchase. Now it's just easier to buy it on credit hiding the true cost of a purchase.The money that goes toward the interest is money that could have gone into a savings account.

    Electronic deposits do make it easier to save. Most companies make it easy to divvy up where the money goes. When I had direct deposit, I could set an amount to be deposited directly into my savings account. The balance went into my checking. Once it was in my savings account, I didn't touch it.

    Electronic age or not, saving is really about setting priorities and discipline.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    My main concern with the electronic aspect of money is the possibility of me or the institutions I use being hacked and having money stolen. I try to be as security conscious as possible with my electronic transactions and limit them mainly to investing activities and also bill payments on certain designated devices using a certain designated account that I keep a limited amount of $ in.

    For small purchases, petty cash, gas, food & drink, etc, I withdraw a certain amount from inside one of my banks about once a week or so and just pay cash for just about everything. I don't like using cards or giving out much of my info to hardly anyone anywhere. Major purchases are generally done with a bank check.
     
  4. owesem75

    owesem75 Well-Known Member

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    Indeed, this is a very interesting topic. I am pretty sure that using electronic transactions or credit cards does affect how people are saving. I just realize now that I have not seen a lot of money these days.. I receive my salary through debit card, I spent it using the same too. Although, I save portion of my salary through auto-transfer... I paid my bills online too!!! wow!

    But I am not saying it compromised my savings, because I believe that saving is up to the person himself and the sincere intention to save regardless if its paper money or emoney.
     
  5. Radix24

    Radix24 Guest

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    I believe the contrary. It is not the fault of the credit cards/debit cards that people are now unable to save. I blame it on the presence of so many new things and the effect of advertising on the psyche. When the current generation wants a new phone each year, then you have one of the reasons that people cannot save. Discipline itself is key if one would want to save.

    The electronic age actually gave rise to numerous budgeting and finance tracking software. If people can use these tools effectively, they should not face the problem of the lack of savings at all.
     
  6. wander_n_wonder

    wander_n_wonder Guest

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    I think you have a point that it makes people unable to save. Everything is just virtual. Virtual money. Virtual communication. Virtual relationships. And so, people indeed lose track of what's physically there. For instance, if you see something nice in the mall, it used to be that you will check your wallet and see if you have enough money to purchase it. Back in the day, if you don't then you are able to stop yourself from buying. However, these days, when you find something nice, as long as you have your credit card, it gives you a feeling that you can almost buy anything. However, most of the time, the reality is that your actual money is not really equivalent to what you think your credit card is capable of buying. This is where imbalance comes in and yes, that's when people are not able to save anything. It's all about the lack of self control these days.
     
  7. queenbellevue

    queenbellevue Well-Known Member

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    I don't think it plays as big a part as you're making it out to be. Most of the saving problems these days stem from the consumerism market. A few decades ago, advertising and marketing wasn't nearly as rampant as it is today. People are repeatedly bombarded with new products and the constant need to buy buy buy in order to keep up. I think it's also because the economic gap between the rich and the poor is much larger today, so while rich people can afford to spend lavishly and still have enough to save, the poor can barely afford to get by each day.
     
  8. Gelsemium

    Gelsemium Senior Investor

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    I think that the only liability here is the one concerned with safety. People already see money as a virtual asset, so we are pretty used dealing with it like that.
     
  9. Rosyrain

    Rosyrain Senior Investor

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    I have just learned to say no to spending unless it is something that we have planned for and can think about it for a while. I don't think there is much that is different about credit cards and things these days, it is just that we feel much more pressure to buy the latest new thing on the market. We bought a nice big screen TV last year and now it is considered an old model.
     
  10. Investor

    Investor Well-Known Member

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    We have to understand that the electronic age had to come, and people had to use it to their advantage, if they had not used it to their advantage, then, they would be left behind and they would regress in life. All these banks that issue credit cards, they are in the business of making money, their only aim, is to make money, and so, they give people this products which they know will bring in revenue for them, very good idea. and to be honest, a credit card has it's benefits but If you are NOT a smart person, you will run yourself into debt.
     

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