Is living frugally & saving as much as you can - the way to deal with recession?

Kaustubh
Member • Nov 17, 2008

Is living frugally & saving as much as you can - the way to deal with recession?

CEans,

I overheard a discussion that dealt with ways to fight with the ongoing world recession. People were saying that living frugally and saving as much as you can is 'the way' to deal with the recession. People have even been advising not to keep the money in banks because it's not safe there anymore.

What's your take?

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Differential

Member • Nov 17, 2008

IMHO, saving is the best option, but its everyone's individual call to decide what extent they want to go on saving. Reducing needs would help saving more.

I am afraid of your second point. Is it so ?

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Kaustubh Katdare

Administrator • Nov 17, 2008

Differential
I am afraid of your second point. Is it so ?
I don't know for sure.

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Anil Jain

Member • Nov 17, 2008

The_Big_K
I don't know for sure.
YUP, In india for all private bank only amount upto 1 Lakh is insured by government. So in case if your bank will file bankruptcy you will not get more then a lakh and all your money will .. 😁

This is the reason people afraid to put money in private banks. Buddy, after the demoliation of LB, daily deposit of SBI rose drastically, as its a government institution.

-Crazy

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Differential

Member • Nov 18, 2008

crazyboy
YUP, In india for all private bank only amount upto 1 Lakh is insured by government. So in case if your bank will file bankruptcy you will not get more then a lakh and all your money will .. 😁

This is the reason people afraid to put money in private banks. Buddy, after the demoliation of LB, daily deposit of SBI rose drastically, as its a government institution.

-Crazy

Thanks Boy ! It worried me but I have to take some decision. 😒

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sauravgoswami

Member • Nov 18, 2008

tat will be conductive to recession,saving surely a gamble

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Lock-Os

Member • Nov 19, 2008

Well, saving is important if you haven't been saving enough cash as of late, and cutting back a little is a good thing some times. But I don't think one needs to completely change. If you try and get the most out of what you buy, then you'll be just fine.

If anything, the only way to get the economy back on track is to spend. Ironic, seeing as that is certainly a cause to the current problem. But, if you use debit and cash and Rarely credit, then I see no problem in buying a few extra things right now.

If anything, since companies are cutting back on production, now is the perfect time to buy any kind of industrial equipment that you might need. Drill presses, hammers... things of that nature should now fall in price. So if anything, this is kind of a boon to anyone wanting to set up their own workshop of sorts.

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gohm

Member • Nov 23, 2008

The answer totally depends on your economical system in use. In a capitalist, free market system, spending in deed is the way to lessen and negate a recession. Saving and especially removing your funds from the system by withdrawl out of the banking system will make it worse.

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