Only Savers Build Wealth
by Mr Credit CardI thought that I might start a “Thought of the day” post just to ramble some of my opinionated thinking! So here goes :
Two posts in the Wall Street Journal caught my eye yesterday. The first post is about China’s deal with two Russian Energy Company, state-owned OAO Rosneft, Russia’s biggest oil producer, and OAO Transneft, its oil pipeline operator. China Development Bank is going to give them a total of $25bn in loans in exchange for Russia will provide China with an additional 15 million metric tons of crude oil a year. This is a long term contract that represents 10% of China’s Energy Needs.
China is also in talks to acquire stakes in Australian Resource companies.
It just goes to illustrate that true wealth is built on a foundation of savings, ie spending less than you make. And like Warren Buffet and other savvy investors, you buy assets when their prices are plunging and there is blood in the streets.
In contrast to China, our good old USA is having the biggest margin call. Rather than using our savings to invest (we have deficits by the way, ie DEBT), we now have to borrow money because we are printing money!
For those who have been responsible and have adequate savings, this is a great time for many things. For example, it’s probably not a bad time look at buying a house if you are a first time buyer. It is cheap to take vacations now. There’s never been a better time to buy a car (paying cash and not taking a loan). The low prices that you pay now for big ticket items will make a significant impact on your wealth going forward.
So hopefully, this will serve as a motivation to get out debt (any debt including the infamous credit card debt) and become serious savers.
February 20th, 2009 at 02:14
while we all should be saving,those who didnt better learn fast.
what you should be writing about is that banks are now charging fees to indiviuals trying to withdraw their unemployment benefits.this could add up to millions stolen froim the goverment by our banks.they are in cahoots with the states on this. bank greed is clearly the probblem that caused this whole mesh.this is just another example of the banks insidious greed
March 13th, 2009 at 06:09
coming from a long finance background, we should not feel sorry for the greed sorrows of the banks, lets remember the golden years when people delt with people based on character more than secret formula 3 digit numbers which are distorted by the credit card indusery to keep profits up, if they can shave several points off your credit number, they can charge you more fees and inteest and keep others from begging you to come join them! agreat little system idea has turned corupt like greed always causes. we should all ban together and everyone should have theirnumber redet to zero and given the fair opportunity to build from there with all having the same opportunities, the money would again begin to flow and te economy would flourish, its so simple but the greedy want to keep people knocked down until they say”uncle” so as to make them say thank you! for charging me 30% for a line of credit further lowering that persons ability to prosper you know th old saying what goes around comes aroun well here it is full circle that light at the end of the tunnel hasturned out to be a train! lets jump of the track and find a better route!