22nd October - Why saving money is for idiots

Last year, whilst lecturing my University class, I set them the somewhat egotistical task of interviewing myself to find out about my career to date. When I was at Uni, I would've loved the chance to quiz my Professor(s), and gain all their insight and expertise in their chosen field. One question - from a more mature student - asked what I like to do in my spare time, to which my reply has since stayed with me, forming a type of internal screensaver to my mind. "Life is to be lived outside of your front door", I replied... "Not inside it". The obsession with which humans grow attached to a clump of bricks and cement has always fascinated me, filling their homes with unneeded items which - like themselves - will only perish one day into the future. 

My belief has always been centred around the fact that we're tourists on this Earth. Visitors here for a short span, in which time we must try to maximise as much of it as possible, to see as much of it as possible with our own eyes - in the flesh - and to experience various cultures and sights. We work, so we can earn money, to therefore spend that money, on seeing all these sights. But of course, even for the most passionate of traveller, there has to be a balance. Money in the bank, for food, rent, bills, and essentials. Stuff saved back for emergencies, or for future endeavours. Deposits on items like housing costs, or vehicles. Despite this, saving in the 'traditional' way is now the most idiotic way to use your money, and I'll explain why, thanks to a video I saw online yesterday. 

Using a Mars bar as a metric of financial measurement, the video showed that in 1996, a Mars bar cost 26p. Today, it costs 79p. With this in mind, £10,000 in 1996 would have got you 38,461 Mars bars. Now, that same £10,000 would get you 12,658 Mars bars. So let's imagine you kept that 10k in the bank all this time, and look how much your money has dwindled! Aside from excessive chocolate purchases, the same rule applies to all modern features of inflation... House prices, car prices, alcohol, holidays costs, food/drink, and general cost of living. Therefore, saving, is fine. A good idea, in fact. But ONLY if you can find a saving scheme which at the very LEAST, matches the rate of inflation. The 'inflation calculator' tool through Google shows that £100 in 1996 is now worth £180. An 80% rate of inflation. Does any bank in the United Kingdom offer 80% interest on savings accounts? You'll be hard pushed to find any offering more than 0.5% these days. So before you penny pinch, think about how you're using (or not using!) your money... Saving is great. But saving, below the rate of inflation...

... Is a government ploy, retained for idiots.