Comments on: the perils of saving http://www.bripblap.com/2008/the-perils-of-saving/ wealth, work and life success Tue, 16 Mar 2010 19:12:01 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: deepali http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-29852 deepali Wed, 20 Aug 2008 21:02:23 +0000 http://www.bripblap.com/?p=542#comment-29852 sooo... instead of losing money in the high-yield savings account, he's going to lose it in the low-yield account. :)<br><br>inflation is tricky though, as curmdugeon noted. my "basket of goods" changes based on what I can buy for X amount of dollars. and X changes based on how much I want to spend. sooo… instead of losing money in the high-yield savings account, he's going to lose it in the low-yield account. :)

inflation is tricky though, as curmdugeon noted. my “basket of goods” changes based on what I can buy for X amount of dollars. and X changes based on how much I want to spend.

]]> By: FFB http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-29794 FFB Wed, 20 Aug 2008 20:58:21 +0000 http://www.bripblap.com/?p=542#comment-29794 Are you saying it's not worth moving money to a high yield savings account from a low yield brick and mortar account? If your choices are between the two then the high yield is still better even with inflation. If the choice is a savings account versus a different investment that can exceed inflation then yeah, you can do better.<br><br>Where would be better in today's economy to put emergency savings? Are you saying it's not worth moving money to a high yield savings account from a low yield brick and mortar account? If your choices are between the two then the high yield is still better even with inflation. If the choice is a savings account versus a different investment that can exceed inflation then yeah, you can do better.

Where would be better in today's economy to put emergency savings?

]]> By: Curmudgeon http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-29627 Curmudgeon Wed, 20 Aug 2008 20:58:07 +0000 http://www.bripblap.com/?p=542#comment-29627 You know, Steve, the inflation rate is a funny thing. The prototypical "basket of goods" used to calculate it fails to take into account choices we can freely make - switching brands, moving to generics, substituting, not buying an optional product, and things like that. We treat it like it's immutable, even though we have a good deal of control over our personal inflation rate. I never worry about "beating inflation" with investments, because there are so many other things I can do to mitigate its effects.<br><br>Plus, if I have more money in savings/investments than I spend, my absolute gain can easily be greater than the percentage lost through inflation (you're a mathematician, Steve, you understand that). I still make out on absolute terms, which especially for the short term is arguably more important. You know, Steve, the inflation rate is a funny thing. The prototypical “basket of goods” used to calculate it fails to take into account choices we can freely make – switching brands, moving to generics, substituting, not buying an optional product, and things like that. We treat it like it's immutable, even though we have a good deal of control over our personal inflation rate. I never worry about “beating inflation” with investments, because there are so many other things I can do to mitigate its effects.

Plus, if I have more money in savings/investments than I spend, my absolute gain can easily be greater than the percentage lost through inflation (you're a mathematician, Steve, you understand that). I still make out on absolute terms, which especially for the short term is arguably more important.

]]> By: deepali http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-29795 deepali Wed, 20 Aug 2008 16:02:23 +0000 http://www.bripblap.com/?p=542#comment-29795 sooo... instead of losing money in the high-yield savings account, he's going to lose it in the low-yield account. :)<br><br>inflation is tricky though, as curmdugeon noted. my "basket of goods" changes based on what I can buy for X amount of dollars. and X changes based on how much I want to spend. sooo… instead of losing money in the high-yield savings account, he's going to lose it in the low-yield account. :)

inflation is tricky though, as curmdugeon noted. my “basket of goods” changes based on what I can buy for X amount of dollars. and X changes based on how much I want to spend.

]]> By: deepali http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-29629 deepali Wed, 20 Aug 2008 16:02:23 +0000 http://www.bripblap.com/?p=542#comment-29629 sooo... instead of losing money in the high-yield savings account, he's going to lose it in the low-yield account. :)<br><br>inflation is tricky though, as curmdugeon noted. my "basket of goods" changes based on what I can buy for X amount of dollars. and X changes based on how much I want to spend. sooo… instead of losing money in the high-yield savings account, he's going to lose it in the low-yield account. :)

inflation is tricky though, as curmdugeon noted. my “basket of goods” changes based on what I can buy for X amount of dollars. and X changes based on how much I want to spend.

]]> By: FFB http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-29628 FFB Wed, 20 Aug 2008 15:58:21 +0000 http://www.bripblap.com/?p=542#comment-29628 Are you saying it's not worth moving money to a high yield savings account from a low yield brick and mortar account? If your choices are between the two then the high yield is still better even with inflation. If the choice is a savings account versus a different investment that can exceed inflation then yeah, you can do better.<br><br>Where would be better in today's economy to put emergency savings? Are you saying it's not worth moving money to a high yield savings account from a low yield brick and mortar account? If your choices are between the two then the high yield is still better even with inflation. If the choice is a savings account versus a different investment that can exceed inflation then yeah, you can do better.

Where would be better in today's economy to put emergency savings?

]]> By: deepali http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-25292 deepali Wed, 20 Aug 2008 14:02:23 +0000 http://www.bripblap.com/?p=542#comment-25292 sooo... instead of losing money in the high-yield savings account, he's going to lose it in the low-yield account. :)<br><br>inflation is tricky though, as curmdugeon noted. my "basket of goods" changes based on what I can buy for X amount of dollars. and X changes based on how much I want to spend. sooo… instead of losing money in the high-yield savings account, he's going to lose it in the low-yield account. :)

inflation is tricky though, as curmdugeon noted. my “basket of goods” changes based on what I can buy for X amount of dollars. and X changes based on how much I want to spend.

]]> By: FFB http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-25290 FFB Wed, 20 Aug 2008 13:58:21 +0000 http://www.bripblap.com/?p=542#comment-25290 Are you saying it's not worth moving money to a high yield savings account from a low yield brick and mortar account? If your choices are between the two then the high yield is still better even with inflation. If the choice is a savings account versus a different investment that can exceed inflation then yeah, you can do better.<br><br>Where would be better in today's economy to put emergency savings? Are you saying it's not worth moving money to a high yield savings account from a low yield brick and mortar account? If your choices are between the two then the high yield is still better even with inflation. If the choice is a savings account versus a different investment that can exceed inflation then yeah, you can do better.

Where would be better in today's economy to put emergency savings?

]]> By: FFB http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-25291 FFB Wed, 20 Aug 2008 13:58:21 +0000 http://www.bripblap.com/?p=542#comment-25291 Are you saying it's not worth moving money to a high yield savings account from a low yield brick and mortar account? If your choices are between the two then the high yield is still better even with inflation. If the choice is a savings account versus a different investment that can exceed inflation then yeah, you can do better.<br><br>Where would be better in today's economy to put emergency savings? Are you saying it's not worth moving money to a high yield savings account from a low yield brick and mortar account? If your choices are between the two then the high yield is still better even with inflation. If the choice is a savings account versus a different investment that can exceed inflation then yeah, you can do better.

Where would be better in today's economy to put emergency savings?

]]> By: Curmudgeon http://www.bripblap.com/2008/the-perils-of-saving/comment-page-1/#comment-25289 Curmudgeon Wed, 20 Aug 2008 13:58:07 +0000 http://www.bripblap.com/?p=542#comment-25289 You know, Steve, the inflation rate is a funny thing. The prototypical "basket of goods" used to calculate it fails to take into account choices we can freely make - switching brands, moving to generics, substituting, not buying an optional product, and things like that. We treat it like it's immutable, even though we have a good deal of control over our personal inflation rate. I never worry about "beating inflation" with investments, because there are so many other things I can do to mitigate its effects.<br><br>Plus, if I have more money in savings/investments than I spend, my absolute gain can easily be greater than the percentage lost through inflation (you're a mathematician, Steve, you understand that). I still make out on absolute terms, which especially for the short term is arguably more important. You know, Steve, the inflation rate is a funny thing. The prototypical “basket of goods” used to calculate it fails to take into account choices we can freely make – switching brands, moving to generics, substituting, not buying an optional product, and things like that. We treat it like it's immutable, even though we have a good deal of control over our personal inflation rate. I never worry about “beating inflation” with investments, because there are so many other things I can do to mitigate its effects.

Plus, if I have more money in savings/investments than I spend, my absolute gain can easily be greater than the percentage lost through inflation (you're a mathematician, Steve, you understand that). I still make out on absolute terms, which especially for the short term is arguably more important.

]]>