Berkeley CSUA MOTD:Entry 53538
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2022/01/18 [General] UID:1000 Activity:popular
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2009/11/21-30 [Finance/Banking] UID:53538 Activity:moderate
11/21   I'm trying to figure out how much I save. Does money I contribute
        to debt (student loans and car loan) considered money I "save"?
        \_ "I'm trying to figure out how healthy I am. I normally
           smoke 2 packs a day but now I've cut it down to just
           1 pack a day. Does the reduction count towards health
           that I hope to 'gain'?"
        \_ When you have more going into a bank/CD/investment than
           what you spend, then you're saving. If you pay just the
           minimum fee (interest only) and put that extra cash into
           an investment that earns more than the interest rate,
           then you're saving even more! Obviously, it's not easy
           to find an investment that 1) earns more than the interest
           rate and 2) is stable/consistent/predictable. So if you're
           not confident that you can use that extra $$$ to earn
           a higher rate than the interest rate, then paying the
           principle will reduce your loan. You are in essense saving
           as much as you can.
        \_ WTF? Fuck no. I can't believe I'm hearing this. You have
           asset, and you have liability. Your loan is your
           liability. So is taking a mortgage even if it's worth a
           lot. When you pay off some principle, you are decreasing
           your liability. People who have a lot of cool shit aren't
           rich. They usually have a lot of liability. The more
           liability/asset ratio you have, the less likely you'll save
           due to having to pay off interests. In another word, if you
           have a bunch of loans (car, student, house, etc), you are
           in debt. You are POOR, and trying to get by your life by
           trying to decrease your debt. If the loan rate is
           significantly higher than say, CDs, then it's usually a
           better strategy to maximize paying off your car loan +
           student loans than trying to put them in CDs. In another
           word, by taking loans esp.  on items that have no room for
           appreciation (cars, boats, etc), then your are throwing
           away money. You are poor.
                \_ That was hilarious, thanks! Btw, my student loans
                   aren't cool shit. All I got for it was attendance
                   at Cal, which in the end just got me an account
                   on this server, putting me in touch with a complete
                   poser like you.
                   \_ I have asset. You have debt. Enuff said. -poser
                      \_ Your English language comprehension ability
                         has been rated as: pathetic.
        \_ My mother spends a lot of frivolous things. She goes to
           high end stores, looks at the price (let's say, $1000),
           then goes to the lower end stores and buys a bunch of
           things (let's say $200). Then she rationalizes that she
           just saved $800. This is the exact reason why uneducated
           women are stupid and cause the whole family finance to go
           down. I vowed to never marry someone like my mother. I'm
           tired of paying off her loans.
            \_ you're an idiot.
               \- You're a dick and an idiot. -!pp
            \_ I'm on the same boat, except that it's both of my parents
               instead of my mom alone who are like this.
               \_ moral of the story: don't marry into a good looking but
                  very white/bimbo/trash family
           \_ my mother just called me to borrow money, but IT'S OKAY!
              "My adjustable rate just went down and I'll save some money
1             "My adjustable rate just went down and I'll save some money
               so everything will be fine!"
              Someone PLEASE kill me.
        \_ I think he is "saving". Saving is a concept from analyzing your cash flow.
           If you have more income than spending, you are "saving". How that flows
           to your balance sheet, by paying off debt or accumulating assets, is
           a separate issue.
2022/01/18 [General] UID:1000 Activity:popular
1/18    

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