To Save in the Bank or Generate more Income
Is it time we changed our focus from saving to generating? I say this knowing very well it’s a topic many analysts will not be addressing because it is not popular.
If this article (Record low rates across all savings accounts – as experts predict Isa season is ‘dead’) is anything to go by, then I propose we change our focus. Many working people are so caught up in the day to day rat race, that they never seem to get a chance to go back and ask;
What is working?
What is leading me to the end of this rat race?
Am I moving to my target or am I being used to help others reach their targets?
This paints a picture of “unprecedented gloom” for cash savers. I think it’s time we think otherwise and build a new TRUTH. What is true now? Can we make it out of this life with the old information really?
Analysts even warn that rates are set to fall even further. In January 2011, the average easy access savings account rate stood at 1.29%. Now it has had dropped to a record low of 0.46%.
The average for a one-year-fixed rate account had dropped to 1.12%, down from 2.43%. Variable cash Isa rates have also plunged from 2.41% to 0.81%.
I am not saying this just to be a radical justifying looser who failed to reach the target; but it is good to wake up from the hypnotic spell that many of us are in. Suppose we continue with the falling rates, will we be better off say 5 years from now? I venture to say that many of us need to wake up. We will not be better off because we towed the line.
It’s time we change the truth that we know. We know most old ideas are not working. Put your money in the bank idea is not working.
May be its time we move into using all our thoughts to think of how can I generate more income rather than what can I save?
Rising prices in the grocery stores are forcing down the living standards. Wages are failing to keep up with the costs of living. Many a households are facing tight financial squeeze. Disposable incomes has fallen to the lowest it can get. Nothing is remaining after tax deduction and social security charges. Nothing to be spent or saved as one wishes. Why is the school and the learning system not realizing this fact. We need to change what we are teaching a child in school now. Surely!
What incentive is there to remain in the same position? I think it’s time we move on to doing something that can save our financial security. Staying with this facts is scary. Where will we end up?
I risk to say; This is the time to take most of the money and financial myths aside, analyse each one of them and know what is the real truth. Create your own financial truth rather than operate with what was working ages ago. Peace!