A new survey has told us what oily raggers have known for quite some time - too many people are saving too little. A survey of 1100 randomly selected people commissioned by Rabo Direct found almost one in two Kiwis are not saving at all.
That just shows how much work
we oily raggers have yet to do when it comes to convincing our neighbours about the virtues of an oily rag lifestyle.
But the survey was not all doom and gloom. It found those who were in debt thought paying off the credit card was the highest priority, followed by mortgage debt. It seems the debt message is getting through.
Using your oily rag savings to repay debt is the very best thing you can do.
The not-so-good news was the reason why people were saving: only 17 per cent said they were saving for retirement or investment - everyone else said they were saving for future spending.
Of those, 21 per cent said they were saving to spend on a holiday and 7 per cent for luxuries and entertainment.
But never fear, the Government has appointed a taskforce to look at improving the nation's savings habits and find out why 46 per cent of New Zealanders don't save.
The truth is the Government does not need to spend our money appointing a task force. It is obvious why people are not saving - they are buying stuff they can't afford.
If the oily rag research department surveyed 1100 of the 2300 members of the oily rag club, we would find a very different scenario.
Virtually all would be saving because they know how to turn a cup of flour into a meal or two and they know how to grow their own vegetables. In other words, they know the value of money.
And they know that by not wasting money they will, over time, be able to lead a life free from financial stress.
Some say the solution to the country's savings problem is to increase incomes. While that is true, higher incomes alone will not solve the savings crisis as there are ample examples of $100,000 income earners living $150,000 lifestyles - with all of the inevitable consequences.
Saving money is something totally within everyone's control and it has an immediate effect.
We are going to leave the last word to Lynda from Wanganui:
"Last year we ran some budgeting and cooking classes for those on low incomes entitled 'Living on the smell of an oily rag'. I took the budgeting one which was quite successful and had requests to speak on the subject. The base line most found challenging was my statement that shopping for $40 per week per head would allow one to enjoy not only the basics but some luxuries like chocolate, icecream, ginger beer ... Actually we do more than just fine as we shop only once a month and draw out $340 ... $320 for all our groceries and $20 for petrol for our van."
Frank and Muriel Newman are authors of Living Off the Smell of an Oily Rag in NZ. Readers can submit their oily rag tips on-line at www.oilyrag.co.nz
A new survey has told us what oily raggers have known for quite some time - too many people are saving too little. A survey of 1100 randomly selected people commissioned by Rabo Direct found almost one in two Kiwis are not saving at all.
That just shows how much work
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