Most affluent people are cautious in their spending

Most well-paid people are cautious about their spending and investments in this time of global economic slowdown, a survey has found.

"All 447 respondents in our survey earn at least Bt75,000 a month," Noppadon Kannika said as the head of ABAC Social Innovation in Management and Business Analysis Research Centre. "They are between 30 and 49 years old".

Conducted from December 1, 2008 to January 18 this year, the survey aimed to find out how affluent people are spending their money and making life plans.

Of those polled, 80.8 per cent said their purchasing decisions were based on their needs and products' utility.

Some 9.7 per cent waited for product prices to drop before making purchases. Just 6.6 per cent of those polled buy on impulse.

With most respondents earning more than they spend, 67.6 per cent have allocated some money for savings and investment.

Putting money into bank accounts is the most favoured option among those polled. About two-thirds of respondents said they had little interest in buying stocks or government bonds.

"The point here is that money in bank accounts usually gives very little return," Noppadon says, "Over a long period of time, these affluent people's life savings may not be enough".

From the findings, Noppadon believes the government should encourage people to make wise investments.

"Their money will stimulate the economy at individual and public levels," he explained.

Asked what could seriously affect their financial positions, 65.5 per cent of the respondents mentioned "the country's political affairs" and 64.6 per cent cited "the global economic situation".

Other common answers included commodity and petrol prices, job insecurity, as well as interest and inflation rates.

More than half the respondents reckoned they could live off their savings for less than one year if bad things, like job loss or serious illness, happened.

Box: Recent survey conducted among people with monthly earnings of at least Bt75,000. All respondents are aged between 30 and 49.

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