Price shocks in formative years scar consumption for life

Post by bombcar » Wed, Jun 15, 2022, 5:46 PM UTC

Red_Leaves_Flyy wrote: post #131

lotsofpulp wrote: post #125

Earlier quoted context omitted.

I cannot understand not having at least a couple hundred cash on you, and much more at home. What are people’s plans if the power or payment networks go offline? Earthquake, hurricane, ice storm, volcano, etc.

You obviously have considerable wealth if you think most people have the savings to keep hundreds of dollars on them at all times and much more at home. A large percentage of Americans can’t afford a $500 emergency. Also, many people don’t carry cash because they’re worried, rightfully or not, about being robbed. Same idea behind leaving stuff in your vehicle.

Post by thebigspacefuck » Wed, Jun 15, 2022, 5:47 PM UTC

itronitron wrote: post #202

DrBazza wrote: post #172

Earlier quoted context omitted.

Another way of stating that article is that most people in their 20s and 30s have only ever known low-inflation and stability. Those in their mid-40s onwards are possibly young enough to remember how what their parents dealt with in the 70s.

I remember sitting in the car with my mom outside an Amtrak train station in the late `70's asking her why she was cutting the tops off of several cereal boxes that we had just bought from the grocery store. Apparently they were for a discount on train tickets.

Post by yunwal » Wed, Jun 15, 2022, 5:51 PM UTC

Gamemaster1379 wrote: post #229

mabbo wrote: post #206

Earlier quoted context omitted.

My wife grew up very close to the poverty line, with her parents always just about to lose the house. And she has this anxiety. (Edit: to be clear, she's a successful civil engineer, considered one of the best in her field locally and makes great money- she has nothing to worry about.) In order to help with it, we have a bank account that our bills come out of that has a little more than 6 months worth of all our bil…

> It's not logical or financially wise I'm taken aback by this statement. I am in an incredibly similar situation to your wife in terms of growing up and being successful today, and I do this. Granted, I think I'm at 3.5 months, but the point stands. Sure, the money isn't generating more wealth, but that amount is finite. It's a cushion that should effectively indefinitely and every dollar beyond is vigorously invest…

Post by dmux » Wed, Jun 15, 2022, 5:55 PM UTC

selimthegrim wrote: post #156

dmux wrote: post #108

Earlier quoted context omitted.

>So I just hoard cash like an idiot as that makes me feels safe and lets me sleep well at night. If you haven't already, look into Certificates of Deposit ("CD") at your local bank. They're FDIC insured (so if the bank goes under, you're covered, up to something like $250k) and you don't have to worry about losing the principal amount you put in. If you ever need to withdraw that money in case of an emergency, you on…

Are interest rates high enough again to make laddering worth it?

Post by throwawayarnty » Wed, Jun 15, 2022, 5:57 PM UTC

mabbo wrote: post #206

ChuckNorris89 wrote: post #2

Being poor in general, during your childhood, scars you for life. It makes you penny wise and pound foolish, adverse to taking risks in your career and investments, can destroy your confidence in yourself, while always having to look over your shoulder monetarily speaking. Habits that even after you remove poverty from your live, you still feel the the anxiety and triggers in your head.

My wife grew up very close to the poverty line, with her parents always just about to lose the house. And she has this anxiety. (Edit: to be clear, she's a successful civil engineer, considered one of the best in her field locally and makes great money- she has nothing to worry about.) In order to help with it, we have a bank account that our bills come out of that has a little more than 6 months worth of all our bil…