Comments on: Life Coach Says Blow That Refund Check

By: Training to Be A Life Coach Dave

Training to Be A Life Coach Dave — Mon, 30 May 2011 20:10:24 +0000

A great point. Many people never consider the current value of money. Sure, saving has its rewards – but those rewards must be offset, or at least reconciled with, the value of spending that money today. The idea of putting off enjoying the fruits of our labor for 40 years just to have a bunch of money when we are old is distressing. Of course . . . so is the idea of financially supporting all those who choose not to save at all

By: worthy

worthy — Fri, 15 Apr 2011 00:12:07 +0000

Accumulated capital is freedom. That’s why I’ve been a saver all my life; and for more than the last 30 years have lived comfortably on the interest and capital gains those savings generated. (Even though a large portion of that income went to a spouse’s obsession with clothes, shoes, cosmetics and lottery tickets.) Spending rather than saving a tax refund. It’s exactly what you would expect from people who couldn’t plan their affairs well enough to avoid excess withholding in the first place.

By: Tim

Tim — Thu, 14 Apr 2011 07:41:59 +0000

In a larger sense Mr. French’s advice if taken rather than Mr. Strelecky’s, would contribute to deflation or at least less inflation. This is NOT what the FED would like. So, ask yourself what most people would do in a highly inflationary time. They would blow it all now in anticipation of higher prices in the future. Conversely in a deflationary time they would save it all now anticipating lower prices in the future. In a sense we can, if done collectively, push the inflation/deflation monsters in a preferred direction. Right now I’ll take deflation over inflation if for no other reason than to thwart the FED. This is basically what deflationists like Robert Prechter and Harry Dent are saying will happen anyway for other motivating factors. And for another reason I prefer deflation because I think we still need to recoil from the last bubble some more.

By: billwald

billwald — Mon, 04 Apr 2011 17:28:12 +0000

“As society is built on savings and accumulated capital, personal finance dictates that individuals live within their means and save for rainy days.”

WRONG! You all have been predicting runaway money inflation. He needs to convert his cash savings to hard and/or useful assets: land, booze, guns and ammo. Maybe junk silver.

“As society is built on savings and accumulated capital . . . ” WHY “AND?” Poetical writing if money IS capital?

Doesn’t compute that

By: mushindo

mushindo — Mon, 04 Apr 2011 10:25:00 +0000

Yeah, but who said saving it has to be in cash? You could buy gold with it, thus ‘saving’ real money well protected from inflation. Or you could invest it in company stocks if you can find one with good prospects in an inflationary fiat money climate. Or invest it in expanding your business if you are an entrepreneur. Or ……..

By: HL

HL — Sat, 02 Apr 2011 22:08:36 +0000

Trips to disneyland are for losers. Take that tax refund and bang some 7 gram rocks. Winning.

By: BioTube

BioTube — Sat, 02 Apr 2011 20:45:29 +0000

Jewelry’s probably a better investment than holding cash now – you can bet your bottom dollar people will always want shiny things, but they could very easily stop wanting slips of paper.

By: iawai

iawai — Sat, 02 Apr 2011 18:23:58 +0000

“Beware of internet advice”

That’s meta.

But really, the point of “saving” is to be able to have a store of value in the future. Where can you get such a thing in today’s world? You can either invest in gratification or in “not losing your store of value quite as vast”. Most people aren’t even capable of finding a precious-metals market or finding out which capital investments will pay off in the ever uncertain future.

By: Donald Rowe

Donald Rowe — Sat, 02 Apr 2011 10:24:58 +0000

Kind of like ‘go with the flow’ and ‘share the misery with the masses.’

Beware of internet advice.

You get what you pay for.

You rip what you sew.

By: Inquisitor

Inquisitor — Sat, 02 Apr 2011 03:00:25 +0000

Reisman’s argument? I recall it from one of his lectures.

By: Inquisitor

Inquisitor — Sat, 02 Apr 2011 02:59:39 +0000

They actually have a point. The current economy and flow of information is so horrendously rigged that what people conventionally perceive as “saving” is a loss-making proposition, particularly due to price inflation.

By: Donald Rowe

Donald Rowe — Sat, 02 Apr 2011 02:23:48 +0000

Duh, now I get it. It’s April Fool’s Day for comments.

Good one!

By: Daniel

Daniel — Sat, 02 Apr 2011 01:35:48 +0000

Don’t forget: inflation helps increase “profits” since costs are incurred now, whereas profits are gained in the future

By: Robby

Robby — Sat, 02 Apr 2011 01:12:07 +0000

Gotta agree with the comments. Maybe not trips or other “experiences.” But I feel safer with stuff than I do with Federal Reserve notes going forward.

By: bagoh20

bagoh20 — Sat, 02 Apr 2011 00:15:54 +0000

Most people don’t really have a better place to put the money than into a pleasurable experience, which is all you will want in the end.

By: Capn Mike

Capn Mike — Fri, 01 Apr 2011 22:21:14 +0000

I’m with Simon.
You play by the rules of the game. Your savings growth will be puny due to pathetic interest rates, erased by inflation, and confiscated by a rapacious state. So go ahead, enjoy the “money” now, while it still has some value.
OR… better yet (seriously) use it as seed money for a new business. Borrow some more to help it along. WE borrowed obscene amounts to start our business back in the Carter days of double-digit inflation, and before the Volcker rate hikes.
Paid it all back with funny money after things took off.
So, as immoral as it sounds, if we’re all careening down that road to Hell, we might as well enjoy the ride.

By: Simon Grey

Simon Grey — Fri, 01 Apr 2011 22:01:18 +0000

Actually, I think his advice is spot-on, at least given the constraints of the times in which we live. What’s the point in saving if inflation will ravage whatever you manage to accumulate? And what’s the point in saving if the government will pay you in your old age? And if the government will provide your health care? What reward is there in working hard and being prudent with your money if the government will simply take it from you in the form of taxes and make what’s left worthless in the form of inflation?