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Golden Rules for Making Money (1880)

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Re: Golden Rules for Making Money (1880)

#181

Post by johnchristopher »

dasil003 wrote: post #174
purplelobster wrote: post #141

Earlier quoted context omitted.

Funny thing is, as a European I never saw the point in credit cards. So when I lived in the US I didn't get one for a few years. Finally my girlfriend pushed me to get one for the free cash back, but the application was denied since I had no credit history (yet a high-paying job and $100k in the bank...). Just weird. You have to be in debt to show that you're responsible enough to handle debt.

You don't have to be in debt, paying your credit card in full each month is an excellent way to build credit, and you will never pay a cent in interest as long as you pay in full without fail. I can see how it all appears to be a silly game if you never actually need credit, however there are material benefits (cash-back, rental car insurance, etc) of playing the game. In some cases the benefits you receive are nonse…

Can you cancel your credit card at any moment if you know you are going into a tight spot soon ? So you don't enter the vicious circle.

Re: Golden Rules for Making Money (1880)

#182

Post by dasil003 »

johnchristopher wrote: post #181
dasil003 wrote: post #174

Earlier quoted context omitted.

You don't have to be in debt, paying your credit card in full each month is an excellent way to build credit, and you will never pay a cent in interest as long as you pay in full without fail. I can see how it all appears to be a silly game if you never actually need credit, however there are material benefits (cash-back, rental car insurance, etc) of playing the game. In some cases the benefits you receive are nonse…

Can you cancel your credit card at any moment if you know you are going into a tight spot soon ? So you don't enter the vicious circle.

Sure, although the age of credit accounts is a significant factor in your credit score, so it's not advisable if you are trying to build credit.

Personally I have enough practice that I treat my credit cards no different than I would treat my checkbook—it's not that hard to avoid trouble if you just have the mentality of only spending money you already have. In other words, I personally don't think cancelling the credit card is necessary, but YMMV.

Re: Golden Rules for Making Money (1880)

#183

Post by carlosnunez »

teddyh wrote: post #53
carlosnunez wrote: post #22

Earlier quoted context omitted.

Here's the biggest reason why I don't mind taking out a loan on a car, one of the most aggressive and most expensive depreciating assets out there: Comfort. Immense comfort. I spend a lot of time in my car. I enjoy the car that I have now (a 2012 Honda Accord EX-L), but the only reason why I didn't take out a lease on something more expensive (like a 535i or an E-class) is because we're planning to move very soon and…

“ Let’s suppose you want the latest iPad. You want it because it is convenient to be able to look at pictures and websites and books and play music around the house. Sure, you already have other computers that do those things, but the iPad is special because it lets you do them while holding it in one hand, sitting on the couch. Wow, that couch is pretty convenient too, isn’t it? It is comfortable, enjoyable, conveni…

I too have read Mustache. His articles are good, but his ideology has always been achieving financial independence from complete (or mostly complete) detachment from materialistic wants. Money (or FI) isn't liberating when all I can do is ride my bike from place to place while always worrying about the time I'll be home since I'll almost never eat out according to his paradigm...

Re: Golden Rules for Making Money (1880)

#184

Post by carlosnunez »

rokhayakebe wrote: post #68
carlosnunez wrote: post #22

Earlier quoted context omitted.

Here's the biggest reason why I don't mind taking out a loan on a car, one of the most aggressive and most expensive depreciating assets out there: Comfort. Immense comfort. I spend a lot of time in my car. I enjoy the car that I have now (a 2012 Honda Accord EX-L), but the only reason why I didn't take out a lease on something more expensive (like a 535i or an E-class) is because we're planning to move very soon and…

Most cars are within the same price range for a lease: honda accord $200, infinity Q50 $300, bmw 3 series $350, mercedes C Class $350, porsche boxter $600, audi A4 $300, hyundai sonata $200, etc...

Yeah...I wish I knew that when I financed my Accord. It just so happens that my Dad is paying only ~$150/mo more on his loan for his 2011 535i than I am for my 2012 Accord EX-L (insurance included in both cases). Sure, his 535i had 35k miles on it (mine only had 6.5k), but his car is SUCH a nice drive and has COMPLETE coverage for 4 years, so any work that he needs to have done on it will more than likely be covered.

If I had known that, I probably would've considered getting a slightly older 335i instead. That said, I don't regret my decision. I love our car (except for the driver's seat...boy is it bad), and owning a nice car here in NYC is a fool's errand unless you don't mind paying tons on body/wheel work.

Re: Golden Rules for Making Money (1880)

#185

Post by teddyh »

carlosnunez wrote: post #183
teddyh wrote: post #53

Earlier quoted context omitted.

“ Let’s suppose you want the latest iPad. You want it because it is convenient to be able to look at pictures and websites and books and play music around the house. Sure, you already have other computers that do those things, but the iPad is special because it lets you do them while holding it in one hand, sitting on the couch. Wow, that couch is pretty convenient too, isn’t it? It is comfortable, enjoyable, conveni…

I too have read Mustache. His articles are good, but his ideology has always been achieving financial independence from complete (or mostly complete) detachment from materialistic wants. Money (or FI) isn't liberating when all I can do is ride my bike from place to place while always worrying about the time I'll be home since I'll almost never eat out according to his paradigm...

I disagree. If you haven’t been cured of spending all your money (or, as you say, “detachment from materialistic wants”), you won’t be able to save any of it.

Also, having money by saving it is not simply sitting at home doing nothing; it’s about feeling secure:

http://www.mrmoneymustache.com/2013/11/11/get-rich-with-the-...

Re: Golden Rules for Making Money (1880)

#186

Post by tarikjn »

marcosdumay wrote: post #154
iQuercus wrote: post #84

Earlier quoted context omitted.

Source?

Well, the first theory is by Keynes, it's on his book. It's been revised and remodeled several hundreds of times, if you want to search Google Schoolar or something like that, look for "demand side" theories, or crisis of "aggregated demand". Also, if you search for NGDP, the biggest share of the papers will be about this. There are many other terms that will lead to less results. It's a really widespread concept.

Mainstream yes, as in the majority believe so. But not without controversy. The Austrian School of economics is an opposing view which has brought just as many results of being the correct philosophy, and one may argue, is a simpler and more elegant approach of economics. And as one may say, clear ideas are easily expressed.
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