Thursday, January 15, 2009

The Saver vs. The Spender

handphone+or+your+homeThe post-Lehman days saw a jump in home re-possessions by the banks after many defaulted on their mortgages.

Just the other day, a colleague mentioned that she's really worried about job security given the avalanche of retrenchments in the past few months. With a large portion of outstanding mortgage and a car loan, she would not be able to keep up with the payments if she's asked to leave.

With the days of easy credit and boom times still in recent memory, I can't help but draw some contrast to two acquaintances who cannot be more different. One (we'll call him the Saver) lives prudently and makes sure that he sets aside a portion of his income every month while the other (the Spender) spends almost every penny he makes and barely has £50 in his bank account at the end of the month.

What's worse is that the Spender, after splurging his salary merrily away, will taunt the rest of us, "Well, at least I've enjoyed my life!". The Saver, on the other hand, is saving up to get his own property and brings lunch to work almost every day.
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Also...
Black Monday - the demise of Lehman Brothers
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Now, both their jobs are in jeopardy. With little savings, the Spender claims that he'll promptly apply for state benefits if he is asked to leave. The Saver, with dreams of getting a property smashed, will probably have to resort to state benefits after his savings runs out.

Life's a rut but who would you rather be? The Spender or the Saver?

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8 comments:

Dutche said...

Haha - I'm definitely the saver. Perhaps bec I was borned in the year of the dog n as u know dogs worries no end abt their future ! My hubby shares my devotion, so it makes it easier to get on with the program ;-)

U also know that Sg'reans has the tendency to spend now n worry later. I know quite a few who never learned from past experiences. It's plugging one deficit after another. They too say that at least they r living the life or u can't take the dosh to the grave with u. Still, I prefer knowing that there r reserves in the bank for a very rainy day n to be able to sleep at nite !

Curious enough, my dutch friends often asked who our beneficiary is as we dont hv kids to leave it to -they seemed to assume that we hv some dosh tucked away - haha.

Oh, what abt u, CK ?

Makoy said...

thanks for sponsoring :)

C K said...

@Dutchie,
Woah, that's a bit lame lor. Ahem, sorry about the lapse.

lol, just tell your friends that whoever the beneficiaries are, they aren't included on the list. :)

Come to think of it, I do know a couple of S'porean friends who have got a huge mortgage, a car loan, employ maids and yet have enough to go on holidays every couple of months! Either they're running an illegal mint in their backyard or they're rolling over their credit.

As far as I know, there's no real state benefits back home unless you consider the occasional 'ang bao' that the MPs give out every now and then.

mesandra said...

i'm not sure - i think i'm more a spender but not because i truly enjoy life to the fullest but i don't want to be a slave to money - strange thinking? Maybe - but more & more hubby is influencing me to be a saver :)

*lynne* said...

I'm not a slave to the green, thankfully. I observed so many of my office colleagues spending way above their means because they wanted the latest car that same out, trade-in, get the next latest one,,, own two houses, this lah, that lah... and I'm thinking to myself all I'm spending my $ on is my daily visits to Coffee Bean ... by itself it was an expensive habit, but nothing like their credit gone wild attitude! I pay off my credit cards every month without fail. "Don't spend money you don't have" is my motto :)

SheR. said...

I'm the Spender. Now I'm engaged, I've learnt to save. :P

But seriously life is too short or unpredictable for rainy days.

Well.. to each his own yeah?

C K said...

@mesandra,
There was this article that I came across some time back that says women are emotive when it comes to spending money thus the tem "retail therapy". Would you think that's true? :)


@lynne,
Atta gal! The irony is if everyone thinks like you, the economy would probably takes a longer time to recover. The key is to be able to save while the (all the) rest are spending freely. Strange but true.


@SheR,
But of course. Just curious, does it cost much to get married in Croatia? I mean, those dinners back home can cost quite a bit depending on the venue and all...

SheR. said...

Wedding dinner in Croatia?
Hm... depends on how many you are inviting. I say something like 2 to 3k euros for the whole wedding? I will tell you when the time comes. Hee..

Of course it'll be much cheaper as most wedding are not held at hotels!