Financed lifestyles

[orangesrule]

I was thinking earlier in the past 20 years finance has become a lot more prevalent. In 20 to 40 years to come. What effect will that have on those who use finance to the max and society as a whole. Is this pushing money to big firms, rather than allowing people to build equity and assets. The way I see it, the 'here and now' generation are potentially going to be far worse off in the long run than previous generation's.
I do see the advantage of finance if it can be used to beat the market, i.e. invest capital elsewhere, with hopefully higher returns than the financed products, but this is not how it is used by the many.

Bit of an odd rambling, but what are people's thoughts?

Edited by orangesrule on Friday 19th July 20:51

[orangesrule]

NRS said:

Can't imagine it's going to be pretty. I'm 31 and don't have debt (also not got a mortgage/house currently due to wanting flexibility, and local housing price evolution) but imagine I'll be paying for others who have not saved at some point in the future somehow.

Yeah I'm thinking the same. Im 28 working a pretty average job, but have an old school outlook. With zero debt and (currently) mortgage free. But I do feel those more money savvy will be bailing out those who arn't .

[orangesrule]

Badda said:

Can you give some examples of things where finance is preventing asset/equity acquisition?

I'm just semising, purely down to the fact that a financed product will cost more in the long run, resulting of a lower net worth for those who do. I.e. money is being spent on items not necessarily owned and/or interest payments.

[orangesrule]

Testaburger said:

That’s completely unsustainable. But, who will pay, and how?

Exactly my thoughts, it will be those who have been sensible, and worked hard bailing out the system.

That said I couldn't think of anything worse than being in massive debt (apart from a mortgage).

[orangesrule]

In fairness, if you have a salary of 28k and can walk away with an pension of 17k, that isn't too bad. (Assuming mortgage is paid off ect).

That said I'm glad I started my pot early. I have nearly 60k in there with another 35 years of work ahead of me. Saying that by my reconning I'll need about 750k-1Mil. To retire on in 35 years time.