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74 Comments
- sarazen, on 10/10/2007, -1/+22Some of the info is UK specific, but it is overall good sense.
- AlexDenne, on 10/10/2007, -2/+20Yet people ALWAYS fall for number 17, no matter how many times you ask, "Honey, do we really need that?" and she replies "Its 50% off, of course we do!"
*sigh* - TubbyCat, on 10/10/2007, -2/+15WHAT?! MONEY DOESN'T GROW ON TREES?! ALL OF THESE YEARS OF GROWING BANANA TREES!
- egroeggnik, on 10/10/2007, -2/+15Omit car and I think you have it right. Never finance anything that doesn't go up in value. Buy a cheap used car, and make your payments to yourself until you can pay cash for a new(er) one. Keep repeating the cycle. Let the interest work for you, not against you.
- Goodbyeworld, on 10/10/2007, -1/+12I expected to see actual proof that money doesn't grow on trees, but what did i get?
1. I’m too young for a pension.
So much for enjoying college. - newyawker, on 10/10/2007, -1/+11Here is an important truth people miss: You should NEVER EVER finance anything except a house, car, or college education.
- dukeeeey, on 10/10/2007, -2/+11It's a shame the mainstream media will never touch upon the subject of where money comes from. 99% of people simply have no idea. Money is created by a private bank (Bank of England for the UK/federal reserve for USA) and loaned to the govertment at interest. Because money is issued as debt, the only way we can pay off the interest, is to borrow more, or to liquidate our assets to the banks. Thus is the total insanity of our banking system.
- bigpete591, on 10/10/2007, -0/+8I thought the same thing. The title should be "50 MYTHS ABOUT SPENDING MONEY". What money "is" was never brought up. I think people would have far less trust in the value of their hard earned money, if they understood that its true value was worthless.
- captinherb, on 10/10/2007, -2/+10But what if it's a REALLY nice vacuum cleaner
- bacon_skoda, on 10/10/2007, -1/+8that's what people did.
- captinherb, on 10/10/2007, -0/+6The article seemed to indicate that ARM mortgages are the norm in the UK, which seems odd. I can't believe anyone, at least here in the US, was getting an ARM in the last few years. Interest rates were at an historic low, did they think the rates weren't going to go back up? Or more likely they wanted more house than they could afford an an ARM was the only way to get it, hence our current sub prime conundrum.
- Duositex, on 10/10/2007, -0/+6I'd digg this but I'm busy reading, "50 Myths About Caps-Lock"
- jumbalia, on 10/10/2007, -1/+6and the biggest myth of all... money=happiness
- Hood15, on 10/10/2007, -0/+5Yepp, gotta love that line :/... for being 50% off it sure has cost a lot after all the times :/
- steffinb, on 10/10/2007, -0/+5Is it just me or is it really English in here?
*cough*loosens collar* - wowsurfer, on 10/10/2007, -2/+7Myth #52 - Credit cards are evil.
Only for those who don't know how to manage their credit... - inactive, on 10/10/2007, -0/+5It is worse.
- heysuburbia, on 10/10/2007, -0/+4My own "found change" experiment over the course of 1 year:
http://basicfunction.com/html/?postid=108 - inactive, on 10/10/2007, -1/+5There is nothing wrong with the monetary system; it is designed to circulate money. The problem is stupidity with the individual. It is not money that is evil, it is greed. Hollywood movies have conditioned people into living an unrealistic lifestyle. Advertising companies are in collusion with the movies to sell their product. Sit back and examine your lifestyle. Do you need to wine and dine 6 star. It is ironic that illiterate Italian peasants migrated Australia to escape starvation after WW2 ate like aristocrats while Aussies with a good income ate like paupers. The peasants had one good survival skill. The ability to turn raw ingredients into exquisite meals fit for a 7 star aristocrat banquet. In my region, European immigrants now live in good homes while the Aussies live in boxes. Having the ability to live on starvation diets gave the peasants the ability to save most their money, educate their children so they did not have to suffer the same fate and purchase moderate houses which was used as collateral to upgrade to better housing.
You will only get out of life what you are prepared to put into it. You have two options; live the Hollywood projected image and end up in bankruptcy or be frugal with your money, use some intelligence and achieve financial stability. There is no-one holding a gun to your head and no-one to blame except yourself when your finances are flushed down the toilet.
In Western Australia, there is a mining boom and a labour shortage which means people without skills are earning ridiculous wages. I saw it in the last boom and this one is no different. People living a day to day millionaire lifestyle without saving any money. The mining companies love employees who squander their money, because they have them by the short and curlies and can control and manipulate them to suit their needs.
Industrialists discovered that slavery was futile and not effective. The invention of the credit card created a workforce of self created slaves willing to place a yoke around their own necks and hang themselves with their own incompetence. - inactive, on 10/10/2007, -1/+5If another organization did what the government does to people every year and when they die. it would be called "organized crime" or even "terrorism"
- jeff303, on 10/10/2007, -2/+6Hey, it's 50 MYTHS not 50 tips.
- EntropyFan, on 10/10/2007, -0/+4A line worth remembering:
>>a temptation for the undisciplined to saddle themselves with a debt they can’t repay
If you want to gamble, pull out a few hundred that you can afford to loose and go to Vegas. Don’t do it with your house, your car, or anything else you hold dear. - p0ss, on 10/10/2007, -0/+4In Australia we have America and England sitting on us.
- kinerry, on 10/10/2007, -2/+6you mean neo-cons
democrats will only make it worse - inactive, on 10/10/2007, -0/+3what about finding your own money you forgot in a winter coat or something?
- schwit, on 10/10/2007, -0/+3This stuff should be mandatory in high school and college.
It would also help if the US had a sane tax system and the US government was prohibited from stealing our money and putting it into the national ponzi scheme known as social security. - ButterBuddha, on 10/10/2007, -2/+553. The Government prints money, not an evil, multinational banking cabal.....
- Duositex, on 10/10/2007, -0/+3...huh? what? Oh I'm sorry.. I dozed off in the middle of your comment.
- IMustBeEmo, on 10/10/2007, -1/+4But the bottom line is interest. No matter what, everything boils down to interest because of this system. So no, it doesn't work.
- antoniuk, on 10/10/2007, -1/+4capitalistic propaganda to get you to give banks your money.
Lies - smartmlp, on 10/10/2007, -0/+2These seem to apply mainly to the UK. I didnt know that you couldnt give your house away to avoid the death tax. That really sucks.
- squegie, on 10/10/2007, -0/+2Personally, I can't see paying more than $5000 for a car. I've also never understood the oil changes & minor maintenance argument. An oil change is maybe $30, and done every few months. I basically see car ownership as a "building up" process.
The best thing to do is look at the vehicles you see on the road. If you see a boatload of mid-90s Honda Civics, or late 80s Oldsmobiles, there's a good chance those cars hold up over time. I'm sure that there are sites out there to help you with this research.
Ifyou're just starting out in life, $1000 is probably what you want to spend on a car. Really shop around and get mechanical friends to go with you. From the time I was 16 and working minimum wage till recently (I'm 26 now) all of my vehicles were in the $300 - $800 range. Most of these cars were 10 years old, had over 150k miles, and generally lasted me about 2 years (the $300 cars I started with were just short of a year. $500 and up lasted a lot longer -- some up to 3 years). Towards the latter end, I actually had two vehicles "on the road" meaning inspected, taggged, and minimally insured. And yes, I used my $60/year AAA Plus card a few times to get those vehicles towed, and I did "loose valuable time". But in reality, a job that pays little comes to expect such things. Despite all this, my car costs were well under $100/month. My last car, a '94 Ford Probe I bought in '02 for $500 lasted me till February of '07. Each year, I ended up doing repairs to the car (all around the front end or suspension) that could cost more than $500, but never over $800 in a year (I kept all the receipts in the glove box). During that stint, the car never once left me stranded (up until a radiator hose blew in Jan '07 -- blown head gasket).
However, I recognize my experience might not be typical. But, even if you shop around and spend $1000 on a "newish" vehicle, you should be able to get a good 2 years out of it. Those $300 vehicles I started out with were junk (I bought one car for $180 and drove it for 5 months before it died), but got me to my minimum wage job. Definitely recommend AAA Plus for up to 3 - 100mile tows per year.
I recently (3 months ago) stepped into a job making $80k/year (about $30k more than I was making last year) and I currently have two vehicles. My main one that I drive is starting to show signs of imminent failure. However, I'm in the process of purchasing another used vehicle. This one is $3000 which is more than any vehicle I've ever purchased. It is a '99 Kia Sportage 5-speed. It is also the first vehicle with under 100k miles on it (98k, but still).
In a few more years, when this one starts to go on me, I will possibly look at a $6k or $10k vehicle. You can get almost new (1-2 years old) for that price. But I don't see much need to double my price and go "new".
Given my experience, I would recommend for anyone to but vehicles based on what their income is. Start off in life with vehicles around $1k ... $2k if you can swing it. As you get going and get more money saved up, go for those $4-$6k cars. If you shop around and do your research (what cars consistently last and are on the road?), you'll end up with a reliable vehicle. You may have to do some work within 6 months after purchasing it. Expect this as part of your purchase price. Keep an eye on your gauges, check your fluids regularly, and you'll be fine.
If you're really believe a new car is the way to go, try this experiment. Figure out how much you want to finance, figure out your monthly payments, figure out what your down payment will be, and then use that down payment to go buy a used car. Set aside your planned payment in a savings account each month (actually, look around for 5% FDIC savings accounts like emigrantdirect.com offers). If you need to make any repairs/improvements on the car, take that money out of your savings.
At the end of the year, I am positive (assuming you kept up with the fluids/filters) that your car will still be running and your savings account will exceed your original purchase price for the used car. If you still want a new car, you now have more money to use for a down payment. If you decide to stick with used, you can purchase an even better used car. If you stick with your current used car, keep your savings account going (most car loans are 2-3 years anyways).
Another thing to consider is that you don't need full insurance on a used car. I would definitely recommend comprehensive (deer, windshield, etc) coverage on top of the minimal, but maybe you don't need full coverage. Maybe switching from a $0 deductible to a $300 deductible might save you $400/year (which you could again put into a savings account if you were disciplined). - p0ss, on 10/10/2007, -0/+2wow, that is incredibly unsuccessful. 2.84 cents per day.. hardly a fortune
- koloth44, on 10/10/2007, -0/+2"18. Shares are the best hedge against inflation. Financial advisers are wont to guide clients into equity-based products on the basis that share prices have always outperformed all other types of investments over the longer term."
...ok, and this is a myth how then? "Buy gold" might be a popular hedge too, but that is a true statement, and in the long term, stocks are the way to go... - known, on 10/10/2007, -0/+247% of Germans are living on government pensions.
- Radi0Waves, on 10/10/2007, -0/+2Heres a fact about money. I want more of it.
- DigitalN, on 10/10/2007, -0/+2What the hell? a list of 50 things on 1 page? some people can't even make a 5 item list on 1 page....
- dukeeeey, on 10/10/2007, -0/+2income tax just pays the interest on the money the bankers created for free then loaned to the government
pre 1913 there was no income tax because it simply wasn't needed because the government created and issued the money itself.
Perhaps you just love being ripped off. - Kyderdog, on 10/10/2007, -0/+2http://youtube.com/watch?v=UQBWGo7pef8
- vinwal, on 10/10/2007, -2/+4Allow me to elaborate on the subject a bit; http://video.google.com/videoplay?docid=-515319560 ...
A long documentary but very enlightening. - pauliewoll, on 10/10/2007, -0/+2> 11. You can’t lose money with premium bonds:
(FYI for non-UK readers: Premium Bonds are a UKGov security sold to the public where the interest is paid out in prizes to holders of randomly-selected bond numbers, two GBP 1M prizes go every month, down to thousands of GBP 50.)
While it's true that you don't lose the face value of the bond (you'll get your exact stake money back however many years later you ask for it), and inflation will erode its real value, many holders (including myself) don't have a sufficiently high stake to make foregoing the interest payable via other routes a life-affecting choice. So I buy them, file them and forget them.
It's nice to get the occasional surprise of a 50 through the post (my returns have been right-on-average), and there's always that slim possibility of a big prize. The monthly list of big winners occasionally shows up someone who holds about GBP 10 total, bought in the 1960s, who has collected five grand. That's one happy pensioner. - p0ss, on 10/10/2007, -0/+2this is why no one knows anything about money, this is the most boring article i have read in ages. I felt old within a few paragraphs. I could easily spend hours reading articles on quantum physics or high tech gadgetry. But 5 minutes with this article and i am falling asleep. I think the banking industry developed the most boring terminology possible to discourage people from paying attention.
- vinwal, on 10/10/2007, -2/+3The truth about money
http://video.google.com/videoplay?docid=-515319560 ...
A long documentary but very enlightening. - xkhaozx, on 10/10/2007, -0/+1Umm.. money does grow on trees people.
Where do you think you get the paper for the money? - inactive, on 10/10/2007, -2/+3I already mentioned this issue before re: credit creation by banks. It's truly an outrageous fraud perpetrated by private banks onto the public. It's interesting to note that countries like Iran, Sudan and Cuba have NO central bank. Not hard to see why these countries have been "attacked".
- TitanX13, on 10/10/2007, -0/+1money doesnt grow on trees it's made of cotton. so its grown in a bush like thing or something
- ONELOVE23, on 10/10/2007, -0/+1Interesting. The differences between the UK and the US are stark. Their government are thieving ***** while our government are only thieving *****, but different, and as an American, I'd say better. I'd rather live in the good old thieving USA than the degenerate thieving UK any old day.
BTW, using credit to fund your college education is stupid. With most jobs you are offered, you will never pay it back. Do the math, baby - ONELOVE23, on 10/10/2007, -0/+1well, you are fuked
- josell, on 10/10/2007, -0/+1If you hate it so much, why are you still here?
- psykiv, on 10/10/2007, -0/+1You can write them off as business expenses...
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