Why do people save so much? - Seedly
 

Savings

Asked by Anonymous

Asked on 14 Nov 2018

Why do people save so much?

Shouldn't we try to utilise the cash on hand into investment to make the money work itself?

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Xinyi Lum
Xinyi Lum, Content Strategist at Seedly
Level 6. Master
Updated on 07 Jun 2019

Interesting question! Not everyone is informed enough to know what to do with their money, hence turn to the next most sensible thing to do which is to save. I think it's especially so for our parents' generation and older to prefer to "see" their money and save cold hard cash. Another reason could also be skepticism on the performance of the economy, so people keep their cash closer and tighter.

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Leong Wen Fong
Leong Wen Fong

14 Nov 2018

Agree with this, that is why there are many questions here about how to even start investing, because their parents never learnt, and so never taught them about it! What may seem simple to the financially savvy community can end up being a whole new world to those who never knew about financial tools. So let's always keep that in mind as we continue to build a smarter community!
Aik Kai
Aik Kai
Level 7. Grand Master
Answered on 05 Mar 2019

It is a personal thing I guess. You can ask the exact same question to 100 people and you might have 100 unique answers.

Some people feel safe when they can see the cash in hand. Some people might have bad experience with investments so they decided not to dabble in it.

Some people may not be financial savvy enough to invest. Some people may not have time to invest. The list goes on and on but ultimately, it depends on an individual on how they handle their money.

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Gabriel Lee
Gabriel Lee
Level 8. Wizard
Answered on 14 Nov 2018

Afraid of making a loss and losing their hard earned savings

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Luke Ho
Luke Ho, Money Maverick at Money Maverick
Level 7. Grand Master
Answered on 14 Nov 2018

Security: There's a sense of security and comfort people take knowing there is accessible money.

Knowledge: If people don't understand how investing works, it's quite difficult to convince them to do it, especially when scams are more prevalent than ever.

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Lok Yang Teng
Lok Yang Teng
Level 8. Wizard
Answered on 14 Nov 2018

Some may not be as savvy and prefer to keep their money in form of cash, could have misconception investments is game of luck. Others may feel economy is not doing well and prefer cash since 'cash is king' (most liquid form of currency and easiest to use compared to like real estate).

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