Distributed FREE to members of the Oily Rag Club (no cost to join)
24 September 2010
new survey has told us what oily raggers have known for quite some time;
too many people are saving too little. A survey of 1100 randomly
selected people commissioned by the good folk at Rabo Direct has found
almost one in two Kiwis are not saving at all.
pretty pathetic and just goes to show how much work we oily raggers have
yet to do when it comes to convincing our neighbours about the virtues
of an oily rag lifestyle. But it was not all doom and gloom. It found
those who were in debt thought paying off the credit card as the highest
priority, followed by mortgage debt. It seems the debt message is
getting through. Using your oily rag saving to repay debt is the very
best thing you can do.
not so good news was the reason why people were saving. Only 17% said
they were saving for retirement or investment. Everyone else was saving
for future spending! Twenty-one percent said they were saving to spend
on a holiday and 7% for luxuries and entertainment! Oh dear.
never fear, we are told the clumsy helping hand of government has
appointed a taskforce to look at improving the nation's savings habits
and find out why 46 per cent of New Zealanders don't save!
truth is the government does not need to spend our money appointing a
task force. It obvious why people are not saving – they are buying stuff they can’t afford!
the government does want to be seen to be doing something about the
country’s dismal savings record, perhaps they could ask those living
off the smell of an oily rag and pick up a copy of Living
off the Smell of an Oily Rag.
the Oily Rag Research Department surveyed 1100 of the 2300 members of
the Oily Rag Club we would find a very different scenario. Virtually all
would be saving because they know how to turn a cup of flour into two,
they know how to grow their own vegetables, and they don’t do silly
things like getting boozed and puffing away a fortune on fags. In other
words, they know the value of money. And they know that by not wasting
money they will, over time, be able to lead a financially stress free
say the solution to the saving problem is to increase incomes. While
that is true, higher income alone will not solve the savings crisis.
There are ample examples of $100,000 income earners living a $150,000
lifestyle, with inevitable consequences. Making more is important, no
doubt about that. But for some there are limitations on doing so, and it
may be a slow process. On the other hand, saving money is something
totally within your control and has an immediate effect.
are going to leave the last word to Lynda from Wanganui. Lynda says, “Last
year we ran some budgeting and cooking classes for those on low incomes
entitled ‘Living on the smell of an oily rag’. I took the budgeting
one which was quite successful and had requests to speak on the subject.
The base line most found challenging was my statement that shopping for
$40 per week per head would allow one to enjoy not only the basics but
some luxuries like chocolate, ice-cream, ginger beer... Actually we do
more than just fine as we shop only once a month and draw out
$340.00.......$320.00 for ALL our groceries and $20 for petrol for our
Thank you Lynda for spreading the oily rag word!
off the Smell of an Oily Rag by Frank & Muriel Newman is available
from all good bookstores or online at www.oilyrag.co.nz If you have some
favourite money-saving or money-making tips, share them with others by
visiting the oily rag website or write to Living off the Smell of an
Oily Rag, PO Box 984, Whangarei.