|Money and Finance Because you have to save money to spend it on new paintball stuff!|
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|03-17-2013, 08:55 PM||#11 (permalink)|
Join Date: Nov 2007
Runamok plays paintball for almost 15 years, at least twice a month, not counting paint ,air, gas to and from,Knee surgury, Runamok has spent the annual income of a mid size company on parts, and now has amassed 8mags, 3 sterlings and an led angel. But MAN!! Ive had a good time going broke.
O! lets not forget the after game beer w/ friends and the ones while working on the newest project gun. Since this all started with a mixed drink or two.
Political Correctness is a doctrine, fostered by a delusional, illogical,
Liberal minority and rabidly promoted by an unscrupulous mainstream media,
which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.
The law of gravity says no fair jumping up without coming back down.
In democracy your vote counts. In feudalism, your count votes.
|03-17-2013, 09:59 PM||#12 (permalink)|
Join Date: Feb 2009
The whole point of working in the first world is to make money to spend it on things to make life enjoyable. Sure, you can save money, and you can have a good time without spending money (as long as you don't have expensive hobbies...none of us on this site), but you can do both if you work it out right.
|03-18-2013, 06:54 AM||#13 (permalink)|
Immune to sales tactics.
Join Date: Dec 2006
I didn't mean to pick on booze specifically, nor I think did the authors. Everyone has certain little pleasures they'd rather not give up. Having twenty of them though - which many people do - is financially draining.
Average return of developed markets since the year 1900: over 9%.
The Bogleheads wiki is my financial guide: Getting Started - Bogleheads
|03-18-2013, 03:59 PM||#14 (permalink)|
Join Date: Aug 2011
Location: Northern MN
|03-18-2013, 04:34 PM||#15 (permalink)|
Saving money is all fine and good, doubly so if you are a person who feels pleasure in seeing big numbers in his accounts. However, you've got to spend it eventually, or saving it was pointless from the start.
If you are saving for a big goal, or living in debt, it makes sense to forgo some pleasures to get your financial house in order. On the other hand, if you have ample cash, why not spend some portion of it? It sure would suck to skip the after dinner cocktails you love for 37 years just to get run over by a bus while walking to the sportscar dealership to spend the proceeds. Each of us has to find a happy middle ground.
|03-18-2013, 04:43 PM||#16 (permalink)|
MCBs armed pacifist
Join Date: Jun 2009
Location: West Michigan
Why I spend money:
Because me not spending money would eventually result in that mental breakdown which would either find me with a tremendous amount of money spent in lawyer fees, prison costs, and or in patient psychiatric care.
Couple that with my belief that the dollar is overvalued and its purchasing power will crash and you can understand why I do not save money.
That being said as long as your goals align with your actions and you are aware of the costs of your actions do what you want with your money. However a lot of times these exercises in "statistics" are optimistic and depend on returns that are not realistic. They further discount concepts such as inflation and use "durable consumer goods" rather than inflation involving things like food and energy costs.
"Unless someone like you cares a whole awful lot, nothing is going to get better. Its not." Dr. Seuss
"Use peaceful means where they are appropriate; but where they are not appropriate, do not hesitate to resort to more forceful - Thupten Gyatso (the Dalai Lama, 1932)
"It is not the will to win that matters - everyone has that. It's the will to prepare to win that matters" Coach Paul 'Bear' Bryant.
"The ink of scholars is more precious than the blood of martyrs" - Muhammed
Last edited by Lohman446; 03-18-2013 at 04:57 PM.
|03-18-2013, 05:26 PM||#17 (permalink)|
2 Infinity and Beyond!
Join Date: Apr 2008
Location: Vail, AZ
If I'm getting interest, it is in a safer location. Those safe locations are not getting 5%. If one is, let me know.
|03-18-2013, 06:22 PM||#18 (permalink)|
Join Date: Oct 2007
Location: A2, Michigan
I don't think cj's underlying message is a bad one. While maybe a bit too specific, it's a good thing to think about especially in relation to long term goals. There are plenty of small luxuries that make life more enjoyable. The underlying message though is just to think about all of the small choices and look at how they add up over time. Minor adjustments that save you a dollar or two a day can add up to large amounts over time.
In some cases you don't even need to sacrifice anything. An example... you eat Taco Bell for lunch every day (because you just can't live without it). You get a medium drink which is $1.49. You have a vending machine at work that sells 20oz's for $1. Buy your pop there instead.
A few small adjustments like this and you're saving a few bucks a day... or as I like to call it an entire mortgage payment (over the course of a year)...
I have to agree on the market percentages.... still, any time your idle money is making any money at all is a good thing. It's the losses that I hate.... Damn AAPL... would have been better off with that $ stuffed in the mattress....
|03-18-2013, 07:25 PM||#19 (permalink)|
Immune to sales tactics.
Join Date: Dec 2006
Further reading: What Are Normal Stock Market Returns?
An individual equity (Apple, RIM etc) might be able to deliver a high return but at extremely high risk.
With a diverse equity index fund, the return may be lower but the risk is lower still, making the risk adjusted return higher than the individual stocks.
It took me a while (a year of reading, starting with the entire Bogleheads wiki) to get this. It's the central precept of Modern Portfolio Theory.
Last edited by CJOttawa; 03-18-2013 at 07:39 PM.