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Post by Arkadi Kuhlmann, CEO of Savings
During these tough economic times, many Americans have turned their attention away from indulgent luxuries and regained their focus on saving for the future. This philosophy to live simply, declutter and divest of the unnecessary is key to a full economic recovery. Recently, in an opinion piece for the Buffalo News I discussed how savings trends have changed in recent months. And why it’s so important to make your savings traits intrinsic to your everyday life, not just for the right now.
If you find yourself saving more now than you have in the past, make sure it’s not a short-term reaction to what you see going on around you. Putting your finances in panic mode then returning to old habits once the crisis has been averted just lends itself to manic saving. Instead, take sustainable actions. Save for your future and your personal needs. Your savings should be part of your permanent lifestyle, not a temporary life change.
Tags: Arkadi Kulhmann, Saving
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The start of my savings just happen to coincide with the economic downturn. Though the economy may have urged me to save more, I simply tired of debt and wanted to work toward financial security. I don’t see myself regressing. I like my growing Orange accounts!
It took a lot of pain and experiencing the consequences of bad personal finance indiscretions to get me to change my attitude about saving, and I have had to deal with a lot of financial “personal demons”, but I’ve made some changes, and I never want to revert back to my old ways.
I understand the importance of saving and encourage it but with the decreasing of the interest rates for savings accounts, it makes it hard to save. I hope this turns around soon because it feels as there are no real “high interest” savings accounts anymore. This in turn will have the negative effect of needing to save and actually encourage spending as there is no incentive to save.
Timely comment, Derek, as ING dropped its interest rate again yesterday. It’s an interesting decision given that there’s no interest rate movement on the part of the Fed.
I agree that these interest rates (on savings and CDs) offer absolutely no incentive to save. The money I have in ING stock, however, has shot up 35 percent since January.
The interest rate on savings is poor right now, absolutely, but saving even still should not be discouraged. A higher principal means that when interest rates do go back up, you have a great principal to begin yielding at.
The worse that can happen is have a great interest rate…but no real principal, thus defeating the purpose.