Comments on: Let’s keep the savings rate going up

By: David @ PYF

David @ PYF — Sat, 14 Feb 2009 22:22:24 +0000

I agree we should be saving more. I think having responsible consumers is the base of a good economy. Spending a bunch of money on products and houses doesn’t do much good if we can’t afford to pay for them later.

I’m saving more than ever, and I plan on increasing the amount every week.

By: zach Vitale

zach Vitale — Sat, 07 Feb 2009 12:38:18 +0000

my friend and i were talking about this the other day and she called me unpatriotic for not spending my stimulus check from last year (i put it into savings). the inference was made that my patriotism would be further questioned if i didn’t spend anything coming my way as a result of this stimulus.

at the end of the day, i have to look out for #1. if i knew that, if i overspent and got into trouble, someone would be there to help me, like the government buying out a problem mortgage, or a credit card company reducing interest rates instead of cutting back credit limits and raising APR’s to 35%, maybe i’d be more inclined. clearly that’s not the case, as it’s hard not to feel that these people are just twiddling their thumbs, taking long weekends and retreats while we’re working to the bone trying to support ourselves and not become another statistic that you read about in the paper every day. it’s frustrating. when there’s a problem at our jobs, we stay until it gets fixed. it upsets me that i don’t see the same drive and ethic from our elected officials, especially in a time of such national (and global) concern. and the trust just isn’t there.

truth be told, i’m very appreciative of our government and our country and the things it enables me to do in my daily life, but the only thing this stimulus will be stimulating is my savings. and i don’t feel selfish or unpatriotic about that one bit.

By: Lord

Lord — Fri, 06 Feb 2009 21:24:53 +0000

I welcome people saving more, but we have to make up for those savings coming out of other people’s incomes or our attempts to save won’t be possible.

By: N. Avery

N. Avery — Thu, 05 Feb 2009 14:42:02 +0000

“What I was going for was talking about people “at the margin,” such as folks who were stretching to buy (used 100% financing, interest-only ARM, etc.) The home buyer credit will make those homes just affordable enough to work, which is the kind of issue that got buyers into trouble. You’re not at the margin.”

Yeah, my friend and I were discussing this the other night. Hopefully lenders have tightened up their standards to a point where this will be less of an issue this time around.

By: mbhunter

mbhunter — Thu, 05 Feb 2009 12:32:34 +0000

N. Avery: Oh I agree. It could be exactly the right time to buy for some people, and this is just icing on the cake. The home buyer credit will help you.

What I was going for was talking about people “at the margin,” such as folks who were stretching to buy (used 100% financing, interest-only ARM, etc.) The home buyer credit will make those homes just affordable enough to work, which is the kind of issue that got buyers into trouble. You’re not at the margin.

By: N. Avery

N. Avery — Thu, 05 Feb 2009 12:10:30 +0000

While I also disagree with the potential home buyer credit and believe more people should save, I would just caution people against lumping everyone who is out buying right now into the same category. I am purchasing a home, and it’s exactly because I’ve kept my personal savings rate very high over the last several years that I can take advantage of the deals on the market right now while still maintaining a substantial cushion.

While I disagree with the huge home buyers non-repayable credit, if it does come to fruition, then I would be foolish not to take it. But note, the purchase is not driven by it happening or not happening, it’s just another symptom of the problem we’re in that has made it an excellent time for a saver to buy a first home.