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As I said, in the particular case of spending more with a credit card vs using cash, I appear not to be susceptible. Again, this isn't something I just assumed, instead I tested it. I'm undoubtedly susceptible to over-spending in other ways though.
Also, its not a matter of lying, its a matter of having incorrect beliefs about one's limitations and abilities.
No, its my well educated month talking, but this is online....I could say anything so what is the point?
...Being the key word.
Your 'test' is when you have NOT changing your spending on your conscious mind.
It's like when I was an EMT, and checking someone's respiration... I wouldn't tell them because if i did, it would change.
Your 'test' is when you have NOT changing your spending on your conscious mind.
It was for 2-3 months so it really wasn't actively on my mind. I actually did spend a bit less with cash, but on reflection it was because I would run out of cash here and there. I don't view that as a legitimate form of savings and I wonder how the studies on this topic controlled for this issue.
In terms of buying what you "need", I'm in no sense suggesting that people only buy what they need. Instead they should buy the things that gain them the most value, but determining this requires a sort of self-reflection and self-honesty that most seem incapable of.
no, you want people to buy things that you deem provide them value. if i want to buy a corvette that costs $55,000, and i value what that corvette offers, then i'm happy with that and didn't waste my money. who are you to determine what is priced "premium" and what isn't? you want to claim a car in the 20-30k range has no premium pricing. every car priced greater than the cheapest car available has a premium price, because the cheapest car available provides everyone that needs a car the basics of what they need. you could buy a 20 year old camry, or a brand new lincoln. as long as you value what you purchased, you didn't waste money. that's my opinion. you don't have to agree with it. you can go on with your opinion that any car over $30,000 is a waste of money because it is "premium priced" in your eyes. but, you still fail to recognize that the $25,000 car you're ok with is premium priced in someone else's eyes, and to them, you're wasting money.
At 3.8% its likely an ARM so yes I'd suggest that. But even if its a fixed-rate I'd suggest paying it down on a 15-year schedule and never resetting it.
But it also depends what else is going on financially as well. For example, if you don't have much in terms of net worth then it would make sense to build some net-worth else where before you aggressively paid down the house.
30 year fixed. no ARM. thank-you-very-much. 3.875%, 30 year fixed. i'm very proud of that. but yeah, i'm thinking payoff in 15 years or maybe 20. all depends on what my other options are over time.
No, I'm saying just what I said. In the particular case of over-spending with credit cards I don't seem to be susceptible, not because I assume I'm not but because I've legitimately tried the alternative. In terms of debt, I follow a very simple rule: Don't do it.
Following a rule doesn't make you special...pretending that you're above corrupting influences when the science on the matter is clear as day is pretending you're superhuman.
the "science" behind the matter shows that it causes some people to spend more. most intelligent folks would realize that means that not all people fall into traps that businesses try to get them to fall into.
I admit I haven't read everything in between your common-sensical post and the lastest one before mine. I agree that the car market is complex and that what people see as "worth it" vis-Ã -vis price is going to vary, including the prestige value, which will be important to some and unimportant to others. I think where user_id has his best point is in lamenting the folks who stretch themselves way too far just out of concern for prestige, or keeping up with the Jones'es. There is a lot of that in this country, and not limited to car purchases, and is one of several reasons behind our current economic mess (particularly with regard to real estate).
true. some people want to keep up with the Jones'es. some people just always wanted to drive a porsche 911 carerra, because it's an amazing sports car. i'd say the person who bought it for prestige and to show it off wasted their money. but the person who bought it to enjoy the ride spent their money nicely.
no, you want people to buy things that you deem provide them value. if i want to buy a corvette that costs $55,000, and i value what that corvette offers, then i'm happy with that and didn't waste my money.
No I want people to serious think why they are buying things. If someone is buying a corvette because they are having a mid-life crisis then its not going to provide value. Honestly....I can't think of many good reasons to buy a corvette...
You can pretend as if spending decisions have nothing to do with status displays and other social issues, but that isn't the real world.
Quote:
Originally Posted by bradykp
who are you to determine what is priced "premium" and what isn't? you want to claim a car in the 20-30k range has no premium pricing.
You're still not listening, I provided a definition of what it meant for a product to have premium pricing. This isn't some definition I pulled out of a hat, its a standard term in the business world.
Cars in the 20k~30k range at times have some premium priced items on them, but as a whole they aren't premium priced products. Where as once you get above $30k you start to see premium priced cars. As I suggested before, the numbers I'm citing are just rough. Additionally, you don't start to see premium pricing in the mega-cars until you get over $50k or so. But the mega-cars are still conspicuous items.
i'd say the person who bought it for prestige and to show it off wasted their money. but the person who bought it to enjoy the ride spent their money nicely.
People don't exist in voids, they are part of social systems, as a result you can't separate these two. Nobody buys things purely for themselves, their social infrastructure always plays a role.
How many people would buy a diamond ring if nobody could see it? How many people would spend $70k on a car if it appeared as a pinto to everyone else?
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