How do people afford...

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

fly yellow · 07-21-2009, 05:41 PM

Quote:

Originally Posted by Spikuh

I'm the one who commented about the keyboard, not hello:

See. And I have no clue where you are getting my posts look like they were done from a phone pad, so I am assuming you were meaning hello there also.

Anyway, I can afford the keyboard easily. For me it is more about the principle of not spending money where I have no real need to spend money than it is about price. As I am a person that can blow cash far to easily, I make myself "agonize" over even small purchases in order to keep myself from living pay check to pay check.

This makes it much easier for me to save up for big items like a 370z, which I hope to be purchasing near the end of the year. Just have to find the right color, although I keep coming back to black with the chrome wheels.

I know it was you that mentioned the keyboard. What I was saying is that if anyone probably needs a new keyboard it would be hellogoodbye.

hellogoodbye · 07-21-2009, 06:05 PM

Quote:

Originally Posted by fly yellow

I know it was you that mentioned the keyboard. What I was saying is that if anyone probably needs a new keyboard it would be hellogoodbye.

i need a new keyboard now? ys that? cuz i talk in short txt? Instead of capitalizing every word and spelling things out? Does that mean I need a new keyboard? Is there some other reason why I need a new keyboard?

drdre8424 · 07-21-2009, 06:20 PM

well, i guess the same way people are paying for the $75K GT-R

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.

edeeZee · 07-22-2009, 05:26 PM

compound interest = [initial outlay x 1.xx^how ever many years] - initial outlay

CPI=consumer price index; this generically indicates how much stronger or weaker your dollar has become after 1 year

Average inflation for the U.S. is 3%. If it is higher than this one year, and you do not earn more money, then your buying power is weakened.

U.S. large cap stocks historically return 8% per year.

Why are we digressing trying to 1-up each other about who's more money savvy or business-educated? This thread was about some person, who claims to be stock-savvy, but is considering an "investment" that goes backward i.e. a car with modifications that cannot earn you money. Who cares if this guy thinks he's an expert, let him think so.

The TS is laughing at how most of us look like monkeys on a leash. I bet he's like nurburing, that guy who supposedly smashed a Z on a test drive. You're playing his game by getting worked up.

fly yellow · 07-22-2009, 05:34 PM

I'm broke, but I have a yellow Z and I have to wear long pants in public so I don't expose myself, so life is good.

Robert_Nash · 07-22-2009, 10:37 PM

Quote:

Originally Posted by edeeZee

compound interest = [initial outlay x 1.xx^how ever many years] - initial outlay

CPI=consumer price index; this generically indicates how much stronger or weaker your dollar has become after 1 year

Average inflation for the U.S. is 3%. If it is higher than this one year, and you do not earn more money, then your buying power is weakened.

U.S. large cap stocks historically return 8% per year.

Why are we digressing trying to 1-up each other about who's more money savvy or business-educated? This thread was about some person, who claims to be stock-savvy, but is considering an "investment" that goes backward i.e. a car with modifications that cannot earn you money. Who cares if this guy thinks he's an expert, let him think so.

The TS is laughing at how most of us look like monkeys on a leash. I bet he's like nurburing, that guy who supposedly smashed a Z on a test drive. You're playing his game by getting worked up.

How is this getting "worked up"?

Why do you keep bringing up inflation as if no one knows what it is? What are you trying to say? Are you saying don't bother saving because you can't beat inflation or because you can't beat it by "enough"?

Regardless of the return an investor receives; any $1 saved "now" still puts the person ahead of anyone who doesn't save it no matter what the buying power of that $1 is "then". A person retiring who starts saving at age 18 and retires at age 65 on a "measly" $3M is still probably going to be reasonable comfortable even if that $3M then will only buy half of what it will buy today and he'll certainly be a hell of lot more comfortable than the person who saved nothing

07-22-2009, 05:34 PM	#118 (permalink)
fly yellow Enthusiast Member Join Date: May 2009 Location: Baltimore, MD Posts: 455 Drives: 09 yellow 370z Rep Power: 265	I'm broke, but I have a yellow Z and I have to wear long pants in public so I don't expose myself, so life is good. __________________ A severed foot is the ultimate stocking stuffer. Mitch Hedberg

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07-21-2009, 06:20 PM	#109 (permalink)
drdre8424 Base Member Join Date: Mar 2009 Location: https://t.me/pump_upp Posts: 133 Drives: 09 Pearl 370z Auto Rep Power: 0	well, i guess the same way people are paying for the $75K GT-R

07-22-2009, 05:26 PM	#117 (permalink)
edeeZee Track Member Join Date: May 2009 Location: s. cali, los angeles Posts: 627 Drives: 09 370z plat 6 speed Rep Power: 266	compound interest = [initial outlay x 1.xx^how ever many years] - initial outlay CPI=consumer price index; this generically indicates how much stronger or weaker your dollar has become after 1 year Average inflation for the U.S. is 3%. If it is higher than this one year, and you do not earn more money, then your buying power is weakened. U.S. large cap stocks historically return 8% per year. Why are we digressing trying to 1-up each other about who's more money savvy or business-educated? This thread was about some person, who claims to be stock-savvy, but is considering an "investment" that goes backward i.e. a car with modifications that cannot earn you money. Who cares if this guy thinks he's an expert, let him think so. The TS is laughing at how most of us look like monkeys on a leash. I bet he's like nurburing, that guy who supposedly smashed a Z on a test drive. You're playing his game by getting worked up.