How do people afford...

Robert_Nash · 07-21-2009, 12:31 PM

Quote:

Originally Posted by Alexus

Being able to afford the finer things in life requires making the right decisions at the right time. Granted, not all of us were born into financial ease. I was lucky enough to have some supporting parents, who would take care of my cell phone bill, feed me home-cooked meals every day and pay me a tank of gas every now and then. I realize that not everyone is this lucky, but if you set your mind to something, you can achieve virtually anything. Putting a quarter or so of your paycheck away into a savings account every pay is a good place to start.

Doing this lead me to being able to purchase an $80,000 sports sedan; at the age of 20. Sure, I own my own business and I do some work occasionally for Strikebox and UFC, but I reckon anyone can open a savings account and instead of spending $200 on a night out at a nightclub, or on a new pair of shoe you're never going to wear, deposit the money into that account. It's not hard but it requires a lot of discipline and I believe discipline is the key to being able to afford anything and everything that you could possibly want in life.

Just my .02 cents.

If a person simply saved $100/month starting at age 18 and never did anything more than that their entire life; they would still have over $3M by the time they were 65 years old. That's the power of compound interest; those who understand it have paid to them; those who don't pay it to someone else.

GMZ · 07-21-2009, 04:04 PM

Quote:

Originally Posted by Robert_Nash

If a person simply saved $100/month starting at age 18 and never did anything more than that their entire life; they would still have over $3M by the time they were 65 years old. That's the power of compound interest; those who understand it have paid to them; those who don't pay it to someone else.

Sorry but I just cant let this fly, not saying not to save but compound interest with the monetary system we have now is an illusion.

Compound interest huh? How about compound inflation? Will that $3M buy what it could at retirement as it did when the person started saving? No way!!

47 yrs ago a dollar went a long way, now not so much. Why? Weve had inflation almost EVERY year since the damn 30's that why.

Theres a huge difference between nominal returns (on paper) and real returns (purchasing power after inflation). Can I get some real deflation please!

Spikuh · 07-21-2009, 04:12 PM

I haven't been following the economy well for the better part of '09 so please correct me if I am off the mark, but the US may actually be seeing some deflation right now. If the fed's have the interest rate at the 0% mark, its entirely possible.

hellogoodbye · 07-21-2009, 04:21 PM

Quote:

Originally Posted by need4speed

If ur only 18. I would say only do small mods u can pay for n enjoy them.
In 3 to 5 years, there will be another must have sports car. And at only 21 to 23
Yrs old.
The guys on here are 200% right bout loans for mods. DON'T DO IT.
N if one day u pay off ur car n u not ur debt fre without any plans of a large
Loan or debt in your future? Then a loan for a mad wouldn't be so bad...
The flipside to that though. You can save now. By the time u r ready to mod
It with a tt. That same 11.5k turbo will be 7 or 8k as newer systems will be out for new cars and/or models.
I was looking at mod prices for the 350z. They r cheap as hell now.
Only the turbo n suspensions are pricey. But still a lot lower than the 370z.

thank you for actually answering my ?

and ya thats what im planning on doing now ordered my catback 2day actually. i have a shop calling me when they have an accessport with maps. and maybe getting hi flow cats in the near future

GMZ · 07-21-2009, 04:31 PM

Quote:

Originally Posted by Spikuh

I haven't been following the economy well for the better part of '09 so please correct me if I am off the mark, but the US may actually be seeing some deflation right now. If the fed's have the interest rate at the 0% mark, its entirely possible.

I might start a economy thread just because I watch it like a hawk, but to answer your question in fact CPI went negative for the first time since I believe 1950 recently. However, and depending on who you talk to a negative CPI does not always equal deflation.

ETA: deflation is good

Mike · 07-21-2009, 06:27 PM

Quote:

Originally Posted by GMZ

Sorry but I just cant let this fly, not saying not to save but compound interest with the monetary system we have now is an illusion.

Compound interest huh? How about compound inflation? Will that $3M buy what it could at retirement as it did when the person started saving? No way!!

47 yrs ago a dollar went a long way, now not so much. Why? Weve had inflation almost EVERY year since the damn 30's that why.

Theres a huge difference between nominal returns (on paper) and real returns (purchasing power after inflation). Can I get some real deflation please!

well, my dad just passed away two weeks ago. He lied about his age and joined the navy at 17, retired after 22 years, then retired from the post office after 20 years there. Looking through his social security statements with your annual pay summary, the most he ever made in the Navy was 16000 per year (retired in 1980) and the most he ever made at the post office was 54000 in his last year there (retired 2001). He left an estate of just under 1 million because he believed in never paying for anything twice (financing), and paying yourself first. We never wanted for anything, nor were we short of money, just that saving from day one will get you extremely far in life.

hellogoodbye · 07-21-2009, 10:41 PM

Quote:

Originally Posted by Mike

well, my dad just passed away two weeks ago. He lied about his age and joined the navy at 17, retired after 22 years, then retired from the post office after 20 years there. Looking through his social security statements with your annual pay summary, the most he ever made in the Navy was 16000 per year (retired in 1980) and the most he ever made at the post office was 54000 in his last year there (retired 2001). He left an estate of just under 1 million because he believed in never paying for anything twice (financing), and paying yourself first. We never wanted for anything, nor were we short of money, just that saving from day one will get you extremely far in life.

ya ive heard saving from day 1 does pay off, it takes some time but it does pay off. ive already began saving >

cept for that 370z lol

Alexus · 07-22-2009, 01:53 PM

Quote:

Originally Posted by GMZ

Sorry but I just cant let this fly, not saying not to save but compound interest with the monetary system we have now is an illusion.

Compound interest huh? How about compound inflation? Will that $3M buy what it could at retirement as it did when the person started saving? No way!!

47 yrs ago a dollar went a long way, now not so much. Why? Weve had inflation almost EVERY year since the damn 30's that why.

Theres a huge difference between nominal returns (on paper) and real returns (purchasing power after inflation). Can I get some real deflation please!

Placing that $100 a month in a minimum rate, variable rate savings account will more than enough cover the inflation, with is around 1.5-2% a year. What's your point?

GMZ · 07-22-2009, 02:03 PM

Quote:

Originally Posted by Alexus

Placing that $100 a month in a minimum rate, variable rate savings account will more than enough cover the inflation, with is around 1.5-2% a year. What's your point?

Are you kidding??? I really must start an economics thread. Why dont you look up what CPI is. It has only been close to zero for not even one year. In 07 it was nearing 6%!! And CPI does not include "volatile" (but NECESSARY) things like food and gas!! Dont even get me started on how the govt changes how CPI is calculated.

Im done going OT in this guys thread.

hellogoodbye · 07-22-2009, 04:09 PM

Quote:

Originally Posted by GMZ

Are you kidding??? I really must start an economics thread. Why dont you look up what CPI is. It has only been close to zero for not even one year. In 07 it was nearing 6%!! And CPI does not include "volatile" (but NECESSARY) things like food and gas!! Dont even get me started on how the govt changes how CPI is calculated.

Im done going OT in this guys thread.

its fine u can keep goingi got my answer

starting now this can be your economics thread

GMZ · 07-22-2009, 04:12 PM

Quote:

Originally Posted by hellogoodbye

its fine u can keep goingi got my answer

starting now this can be your economics thread

Sorry for the hijack bro, I posted up one in The Lounge.

Robert_Nash · 07-22-2009, 05:05 PM

Quote:

Originally Posted by GMZ

Sorry but I just cant let this fly, not saying not to save but compound interest with the monetary system we have now is an illusion.

Compound interest huh? How about compound inflation? Will that $3M buy what it could at retirement as it did when the person started saving? No way!!

47 yrs ago a dollar went a long way, now not so much. Why? Weve had inflation almost EVERY year since the damn 30's that why.

Theres a huge difference between nominal returns (on paper) and real returns (purchasing power after inflation). Can I get some real deflation please!

Compound interest is not an illusion. Of course inflation is an issue but that existence of inflation, whatever the level, doesn't invalidate the example.

I would certainly hope that people would save a lot more than just $100/month but the overall point was that it doesn't take starting out with a huge pile of cash to wind up with a huge pile of cash and the earlier you start the better...it also serves to identify the real cost of financing something...the cost of financing a new vehicle; especially what is essentially a toy for most people, is far more than just the sum of the payments.

Financing modifications to a vehicle that will generally make an already rapidly depreciating asset depreciate even faster is like holding up a big red sign begging Murphy to pay you a visit.

The real cost of financing a vehicle gives the slogan "like a rock" a whole new perspective.

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07-21-2009, 04:12 PM	#3 (permalink)
Spikuh A True Z Fanatic Join Date: Jul 2009 Location: The Ark Posts: 2,357 Drives: '09 370z Rep Power: 23	I haven't been following the economy well for the better part of '09 so please correct me if I am off the mark, but the US may actually be seeing some deflation right now. If the fed's have the interest rate at the 0% mark, its entirely possible.