Will saving actually save us?
On optimism in pessimistic times.
I got into investing in February 2020. More specifically, it was when I actually started paying any attention to my money at all. Prior to that, I was perfectly happy and able to be coasting along. I always had a salaried, full-time job, and I spent less than I earned.
By the end of 2020, I’d taken the leap and left employment to pursue entrepreneurship. It’s something I’d always wanted to do, and I embarked on a journey of learning, failing and self-sufficiency. It’s been fun and terrifying, and my attitude to finance has shifted massively. It’s no longer a negligible thought; it’s front of mind.
Dovetailing almost perfectly with my own journey are increased headwinds of uncertainty. The insane cost of simply existing has quietly shifted from being a crisis to something we must simply live with.
Markets have straight up stopped reacting in the way they have done so for years; political acts used to have fairly predictable repercussions, reining in (to some degree) absolute lawlessness. Prediction markets feel like they’ve become the new Wild West for making quick money, replacing cryptocurrencies1. And AI hype has added a terrifying new dimension to labour markets.
At a frighteningly fast pace, many are able to extract significant value from markets, and become wealthier. And, just as quickly, the gap between the grifters, the capitalists, the successful entrepreneurs - and the rest of us is widening.
What it means for our finances is that saving isn’t getting us very far, and we’re able to save (and invest) increasingly less. There’s always alarm over how screwed most people are in retirement - this week’s story from the Pension Commission shows that 15 million aren’t saving enough for retirement. With what money?!
At the same time, the social safety net that used to exist 20, 30 years is now so frayed that it seems like we’re teetering on the edge of the abyss.
These support systems aren’t needed for those who are lazy. Most people are working. They’re doing the best for themselves and their families, friends, communities.
But they’re also exhausted, with little to no belief that things will get better. The last few years alone have shown that things will get worse, and there’s nothing being done to protect us.
It’s why the default response is to consume more content, buy more from Shein, Temu, Amazon. And rely on small treats more and more; artisanal bakeries are booming while restaurants and cafes are struggling. The latest one I’ve seen open up is Parisian brand copains, which sells some individual pastries for £12.90(!).
These affordable indulgences help us feel connected to the tsunami of consumerism characterising our lives. But at what cost?
Six years ago I was optimistic that better control of my finances would lead to a significantly more financially secure life. Now I’m truly not sure that it’s possible. Incrementally better, sure. But is that enough?
Small changes seem like they actually won’t make a big difference. This compounds a sense of weariness and despair. Or perhaps they actually will - and holding on to this belief is the only viable option.
In any case, why not get that bougie croissant2 after all?
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Related reading
The Girlboss Didn’t Die...She Can’t Afford To. Charlotte Mair calls out a few interesting things - notably: 1) Women haven’t stopped to progress in the corporate world; it’s just the systems around them have proved too exhausting and unfruitful to keep pushing against and 2) more women are starting businesses.
A project will save you - how to respond to the AI job apocalypse. Rosie Spinks “If you have something to come back to, something that’s yours, you can put up with a lot of other bullshit.”
Powerful women telling us to use AI or get left behind aren’t reading the room. This is on the heels of former Google CEO being booed while giving a commencement speech centred on AI. “While ten years ago we might have been sold on a “rise and grind” version of success, we now know better.”
Men are fixated with women profiting off of adult content because it’s the American dream they were promised. Jasmine Melody
Other things
If you are looking for a book to tear through, I cannot recommend Jo Piazza’s Everyone Is Lying To You enough. I almost bought into the tradwife novel hype around Yesteryear, but read Maryellen Groot’s review, and discovered this book in the comments. And read in a day.
Double Jeopardy (1999) is a great action movie I’d never seen before (Netflix)
I loved Lady Gaga’s MAYHEM album (released last year), and enjoyed her ‘remix’ live album MAYHEM Requiem (Apple Music). If you listen to one thing from it, it’s Die With A Smile
Money Brunch is an occasional newsletter about the intersection between life and money. Thank you so much for reading 🙏
Everything feels like a grift. And if you’re not grifting, what are you doing?
Buns From Home berry cheesecake bun ftw. Or perhaps I will go to copains after all..(!)
This makes so much sense and now I understand the influx of specialty matcha as well. I trust your finance advice to the moon and back and love your framing of the question: How far can the wave of saving carry us?