People starting to think about the future and paying off debt.

[damngrumpy]

Even the haves are about to feel the pinch. World economies are going to tank.
China as an economic engine is reportedly flat right now and that is a sign of things
to come. 2008 was postponed not dealt with. when inflation and unemployment
and all the other harbingers of fate hit us in the near future saving squandering and
doing nothing could all amount to the same thing.

 

[taxslave]

I think the key to putting money away is use the golden rule: pay yourself first. It's amazing that so many people can find money to give to the telecoms, Apple, Bill Gates, Future Shop etc yet don't set aside anything for their future. Building equity is a marathon and best done systematically right off the top of any pay cheque.

For the couch potatos that is investing in their future.

 

[EagleSmack]

My hubby's parents talk all the time about 'protecting the inheritance'. We were all there for dinner one night when they were talking about having helped out their eldest financially through a tough divorce, but that the rest of us shouldn't stress, as the will was rewritten to reflect the disparity, and it would all even out in the end. The response from everyone was, 'we have more money than you, we don't need an inheritance, and you never have to justify how you spend your money. Aim to go out at zero. You earned it, spend it on yourselves.'

Which is exactly what we tell our parents.

They grew up poor like many during the depression. As a young family THEY struggled but sheltered us kids from it. (Although we never did get Atari. )

However they saved and saved and my Dad learned how to invest and did pretty well. So we tell them never to worry about spending their money with travel etc. They have said the same thing to us... worrying about what they'll leave behind. They earned it.

 

[petros]

My hubby's parents talk all the time about 'protecting the inheritance'. We were all there for dinner one night when they were talking about having helped out their eldest financially through a tough divorce, but that the rest of us shouldn't stress, as the will was rewritten to reflect the disparity, and it would all even out in the end. The response from everyone was, 'we have more money than you, we don't need an inheritance, and you never have to justify how you spend your money. Aim to go out at zero. You earned it, spend it on yourselves.'

When I was handed the farm, nobody else wanted it because part of the inheritance was it can't be sold off and stays in the family. 400% equity in 5 years and another 4.5 sections bought from other too good to farm urbanites has me grinning from ear to ear.

 

[The Old Medic]

Zero savings: A fifth of Canadians put nothing aside in 2013 | Financial Post


Not sure what this says more about - the state of the economy or peoples' wisdom. On a side issue I was checking out the cost of heart bypasses the other day, just to have some idea in case gov't funding for health care runs out. If you have to foot the cost of a triple bypass expect to pay up to $200 grand. (I would have thought maybe 50)

Gee, what took them so freaking long to figure out that carrying a lot of debt is bad for you?

I began my savings and investment program when I joined the U.S. Army in 1959. One half of every pay raise went into savings, and as soon as I had enough, into Mutual Funds. I continued that program for the 10 years I spent in the Army, and came out with about $40,000 (US) in investments.

I suspended this while in College/University, but resumed as soon as I was employed again. I did this right up to retirement.

The ONLY things I bought on "time" were homes. I paid cash for my cars (and yes, sometimes I drove some very "uncool" wheels". I waited till I had cash to purchase TV's, stereos, computers, new furniture, etc., etc.

That's a very strange concept to all too many people today. To actually pay cash for everything.

The home I live in currently was also paid for in cash. I have no debt at all, None, NADA, nothing. I also have a more than adequate monthly income, US Medicare with a Medigap policy that picks up 100% of my medical costs (except prescriptons, which are covered by another policy).

Initially, my savings were only $3.50 per month (I went from $78.00 to $85.00 per month. Then, when I went to $99.00 per month, my monthly savings amount went to $10.50 per month, and so on. Even those small amounts added up over time.

There is absolutely NO reason why anyone can't follow a similar program.

 

[JLM]

Gee, what took them so freaking long to figure out that carrying a lot of debt is bad for you?

I began my savings and investment program when I joined the U.S. Army in 1959. One half of every pay raise went into savings, and as soon as I had enough, into Mutual Funds. I continued that program for the 10 years I spent in the Army, and came out with about $40,000 (US) in investments.

I suspended this while in College/University, but resumed as soon as I was employed again. I did this right up to retirement.

The ONLY things I bought on "time" were homes. I paid cash for my cars (and yes, sometimes I drove some very "uncool" wheels". I waited till I had cash to purchase TV's, stereos, computers, new furniture, etc., etc.

That's a very strange concept to all too many people today. To actually pay cash for everything.

The home I live in currently was also paid for in cash. I have no debt at all, None, NADA, nothing. I also have a more than adequate monthly income, US Medicare with a Medigap policy that picks up 100% of my medical costs (except prescriptons, which are covered by another policy).

Initially, my savings were only $3.50 per month (I went from $78.00 to $85.00 per month. Then, when I went to $99.00 per month, my monthly savings amount went to $10.50 per month, and so on. Even those small amounts added up over time.

There is absolutely NO reason why anyone can't follow a similar program.

You had the right idea, there old timer, unlike the fad today of charging up Gold faucets on VISA. -
P.S. The syndrome today is called "I gotta have it NOW". -

 

[Machjo]

How does that work?

I've got some money on the sidelines, but alas, the market won't crash

Oh well, maybe next time.

You better hope it doesn't keep falling. 8O

I was hoping it would keep falling.

 

[Kreskin]

For the couch potatos that is investing in their future.

It's simple. Dollar cost averaging is one of the best strategies. It takes out a lot of the fear and greed mistakes and instills some discipline.

 

[JLM]

It's simple. Dollar cost averaging is one of the best strategies. It takes out a lot of the fear and greed mistakes and instills some discipline.

Absolutely and it gives you leverage.

 

[Machjo]

It's simple. Dollar cost averaging is one of the best strategies. It takes out a lot of the fear and greed mistakes and instills some discipline.

That's how I do it in monthly withdrawals. But it doesn't change the fact that when the market crashes we might as well put our emergency funds to work

 

[JLM]

That's how I do it in monthly withdrawals. But it doesn't change the fact that when the market crashes we might as well put our emergency funds to work

Yep, that's why it's always wise to have some in equities and some in fixed income. When equities are low you transfer some of the fixed income to equities. While you are taking advantage of dollar cost averaging when buying in you also can choose your times to withdraw to your best benefit.

 

[darkbeaver]

Is This the Big One? The New Wave of Financial Instability


http://rinf.com/alt-news/latest-news/big-one-new-wave-financial-instability/#respond


Mike Whitney
RINF Alternative News
Global stocks were hammered on Friday for a second straight day on news of a slowdown in China and turbulence in emerging markets. The Dow Jones Industrials suffered its worse drubbing in more than two years, tumbling 318 points on Friday to end a 490 point two-day rout. Emerging markets currencies were whipsawed by capital flight as foreign investors fled to the safety of U.S. Treasuries. Turkey’s lira and the Argentine peso were particularly hard hit setting record lows in the 48 hour period. The scaling back of the Fed’s $85 billion per month asset purchase program, called QE, has altered the dynamic that made emerging markets the “engines for global growth”. The policy reversal has triggered a selloff in risk assets and sent EM currencies plunging. Here’s a summary from Bloomberg:

“The worst selloff in emerging-market currencies in five years is beginning to reveal the extent of the fallout from the Federal Reserve’s tapering of monetary stimulus, compounded by political and financial instability.​

Investors are losing confidence in some of the biggest developing nations, extending the currency-market rout triggered last year when the Fed first signaled it would scale back stimulus. While Brazil, Russia, India, China and South Africa were the engines of global growth following the financial crisis in 2008, emerging markets now pose a threat to world financial stability.” (“Contagion Spreads in Emerging Markets as Crises Grow,” Bloomberg)​

The vermin who hold the debt would rather fix the books with global war.