When did saving get trendy?
Have you heard of Living Social, Scoutmob, GroupOn, Daily Deal? Well if you haven't, please forgive me, but you must live under a rock.
I recently embarked on a wonderful yoga retreat myself with Living Social "Adventure." It was a day of yoga, wine drinking, and other restful activities - all for only $75. Now, could I have had a great bottle of wine and done some yoga at home for $30? Sure. But I actually "SAVED" $75 doing the retreat. How, do you ask? Well the retreat had been discounted from $150. So I "SAVED" $75. The impulse to sign up for the random manicure, skydiving course, or yoga retreat is high without the "discount." So with the opportunities these new websites and deals bring us, we can have an adventure and now feel like we are not breaking the bank.
In researching for the counterpoint to this "savings" trend, I looked into what people are actually putting away - not just saving by spending half on something they did not need in the first place, but money they actually put in a "Savings Account." What did I find???
Putting away money in savings accounts across the county is down! Down? I was surprised. I found that income is up and savings are down. Income was up by 0.2% ($28.2 billion) and savings was down from last year by 0.6%
According to the U.S. Dept of Commerce, Bureau of Economic Analysis:
"Personal income increased $28.2 billion, or 0.2 percent, and disposable personal income (DPI) increased $18.9 billion, or 0.2 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $86.0 billion, or 0.8 percent. In January, personal income increased $26.5 billion, or 0.2 percent, DPI increased $5.0 billion, or less than 0.1 percent, and PCE increased $40.9 billion, or 0.4 percent, based on revised estimates."
"Personal saving -- DPI less personal outlays -- was $438.7 billion in February, compared with $509.5 billion in January. The personal saving rate -- personal saving as a percentage of disposable income -- was 3.7 percent in February, compared with 4.3 percent in January. For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth, go to www.bea.gov/national/nipaweb/Nipa-Frb.asp." for complete article: http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm
Seriously, I did not see that coming. Spending is up and actual dollars saved in an account is down!
What does that mean??? Confidence is building in our economy, that is what this means! People are not tucking away every cent for fear of not having next month's paycheck. The daily fears will come and go, but the overall movement is good!
The bonus round ... Living Social is planning a Wine/Bus tour!!! They will not let us sign up early, I already asked. I will sign up with pride and confidence when I get one of my million Living Social emails, knowing that I am doing my part. I am contributing to the recovery and saving while I do it!!
So, my friends, Tweet it from the rooftops! Use your Scoutmobs, your Groupons, Daily Deals and yes don't forget your Living Social Packages for whatever random event make you squeal with delight. We are in the right direction and looking great and having fun on the way.