Do you dare to spend tomorrow's money?

China
April 1, 2007 7:43am CST
a good quality life including some basic requirement, such as a big apartment, a car, several digital products...ect., but all of us know it's so difficult that have so much money in a short time...you know, for most of people, one house can spend all money for a life... it's so happy that we can choose divided payment...and including real estate, car and now can even for PC, and mobile...many people think it's good... but why there are so much saving in china?...for so many people dare not to spend the tomorrow 's money...they know , once you choose that way, which means you need to pay more accrual every months...you will employee for two company, one for your corporation, another for bank...you will be house slave , or car slave... and I heard a guy buying a BMW when he graduated for 3 years...but he saled that BMW for only 6 months...you know why, he can not afford to pay it every months.. .and I also heard most of people face for a embarrassed condition that their house will take back by banks... dear friends...do you dare to spend your tomorrow money...or you have better idea...please share..thanks
1 person likes this
2 responses
twix
@teison2 (5921)
• Norway
1 Apr 07
I try my very best not to spend money before I earn it. I would never buy a car, a computer, furniture, apliances until after I have saved enough money. If I were to buy them using a credit card or loan the items would be sooo expensive. I really cannot afford that in the long run. Buying a home is another story entirely. Where I live prices on houses and apartments have increased by around 10 % every year since the early 90s. The prices go up more than the interest rates on the loans. So buying your home is a good investment. And in addition you pay money to yourself when paying off the mortgage. When renting you just pay your landlord. I think it wise to loan money for an apartment when the economic conditions are like this. But - you should never borrow too much. You should make sure you will be able to pay the mortgage even if your salary decreases or the interest rates grow higher.
jimhuo2008
@jimhuo2008 (572)
• China
27 Apr 07
tks for your response ,my dear friend,
guilinfd
@guilinfd (76)
• China
27 Apr 07
there are some reasons for the high saving rate of china. the first is the unperfect social security system. the second is the unexpected policy changes. both of these give a rise of the saving rate because people have to undertake a large part of the risk by themselves.