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Spend or save?

...on serious topics that don't fit anywhere else at present.
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Dave B
Posts: 17809
Joined: May 17th, 2010, 9:15 pm

Spend or save?

#1 Post by Dave B » April 2nd, 2016, 12:47 pm

Being in the position where either option is available, where all my bills are under control, where I have no family to leave money to - but still feel guilty about spending money on non-essentials - I often find myself wondering about this and my social conscience. Also I do not have enough capital to buy a small bungalow in this area - or I would be heading for that.

Old Biscuit Brain did those of us fortunate enough to be savers a couple of small favours in his budget (two of which neither of the banks I have accounts in will be offering!). Mainly, for me, the stopping of taxing interest on smallish savings accounts or interest bearing interest. So I will be gaining less than a fiver a month - still better than a poke in the idea.

I don't know how much the exchequer will lose from this move but I often wonder what good this saving does foir the nations economy. Are the banks lending more to those who wish to start or grow a business and employ more people? Are they hoarding it? Are they lending it to others (at interest) who lend it to others (at interest) . . . The latter will probably end in the final ''vendor'' having to charge more for his goods because all those interests, plus profits, have to be clawed back further up the tree.

Now, how much would the exchequer loose if VAT was reduced, per %, in order to stimulate buying? Buying, even stuff from China etc, employs more people than saving (I would guess) and repays taxes in wages - unlike most benefits.

So, should my policy of life be ''Spend, spend, spend!''? Those getting something from me in my will will still get something from the sale of this flat at least and they can keep, donate or sell all the materiali stuff.

Not seriously worried about this but - what are your priorities in this area?
"Look forward; yesterday was a lesson, if you did not learn from it you wasted it."
Me, 2015

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