[Economics Thread] Moe Money, Moe Problems

[CatCloud]

Well if you're going into a university in the USA I would imagine it to be pretty much impossible to avoid loans...

"shrugs" I'm glad im not living there. As far as I know you get paid rather having to pay here in Sweden.

Not much but it's something.

[-CLASSIFIED-]

Indeed you might. But how long before you pay that loan off, and how long before the next loan you get is more than 0% interest 

i can pay it off in 5 months , and idc cuz i dont wana get an loans unless i have to for like a house or car ... altho at least im building my credit score this way

[Daegun]

My theory on finances:

 

Avoid loans whenever possible. Be patient, save your money, and buy things when you can actually afford them. Credit is a trap (meant to make those who provide it, richer than you), nothing more.

Nah man, credit cards are amazing. Big loans? Pay them off with a couple credit cards. Max out those cards? Pay them off with even more credit cards. Do this for not just loans but everything else as well, and suddenly you never have to spend a penny of your own money again.

[wolfgang]

Apologies for such a poor quality post, but this thread is intimidating. .-.

 If its intimidating then get started on making it less intimidating. 

There are a few economic topics I've always wondered about:

 

How does one get good credit at a young age with little employment history? I'm looking into purchasing a car soon so this is relevant to myself and really anybody with bad/no credit.

WTF is a 401k...?

@MyInnerFred feel free to correct anything.

As far as credit goes. Your looking at entry credit cards as fred said. You can also get a car loan without credit but you will have high interest rates. If you have someone with good credit such as your parents who will co-sign you can get lower rates(this is what I did with my first car. Your loan builds some credit. When you get a car you can also get a gas card which will build you credit.

Also I am currently working on a home loan right now so credit is really important to me).

A 401k is a retirement plan. I dont know all the details but you put part of your paycheck into it and when you retire you can withdraw money from it.

[Trik'Stari]

i can pay it off in 5 months , and idc cuz i dont wana get an loans unless i have to for like a house or car ... altho at least im building my credit score this way

That's my problem with loans. everyone seems to believe they need one to get a loan for a house or car.

 

Nah man, credit cards are amazing. Big loans? Pay them off with a couple credit cards. Max out those cards? Pay them off with even more credit cards. Do this for not just loans but everything else as well, and suddenly you never have to spend a penny of your own money again.

Yeah.....my parents did that, they went bankrupt. I'll never own a credit card as long as I live after having gone through a bankruptcy. It's the same thing as waiting till you can afford what you want, only more miserable. I'm certain you're being sarcastic, regardless. I am not going to EVER have a credit card.

[Trik'Stari]

-snip

In the US though marketing is everything in our capitalism.  Banks own everything though actually split it with big corps.

^this is exactly why our society and economy are shit.

 

The people who control banks and corporations have the same attitude "fuck everyone else, GIMME THE MONEY BITCH".

[Trik'Stari]

Give Thomas Mores's Utopia a read.  It explains and defines Utopia. He was quite the egotistical narcissistic elitist according to various scholars.

I will, but I would note.

 

I have no issue with capitalism. My issue is with what corporations and politicians call "capitalism", which I regard as a perversion of capitalism. Pure greed does not equal capitalism in my mind.

[PlayStation 2]

I'm surprised that this thread didn't crash and burn already.

[Trik'Stari]

I'm surprised that this thread didn't crash and burn already.

I've been waiting all night to use this. Thank you.

[Jaybird]

oh my goodness its actually live! WOW

[Charger]

With a title of moe money, moe problems I'm expecting this to be about the economics of anime. I will wait till morning to read it and be disappointed.

[TheProfosist]

With a title of moe money, moe problems I'm expecting this to be about the economics of anime. I will wait till morning to read it and be disappointed.

Hey I can talk that sort of economics. #BringIt

US Anime crash of 2007 anyone?

[Fred Castellum]

With a title of moe money, moe problems I'm expecting this to be about the economics of anime. I will wait till morning to read it and be disappointed.

Hey I can talk that sort of economics. #BringIt

US Anime crash of 2007 anyone?

The thread title is the closest you'll get. No anime here, sorry. 

[GeTecknics]

How does one get good credit at a young age with little employment history? I'm looking into purchasing a car soon so this is relevant to myself and really anybody with bad/no credit.

 

 

This is going to be a long draw out reply if you have any more questions feel free to PM me.

TLDR : make sure to look at inquiries and utilization as they have a large impact on your score and lenders look at them also not just on time payments

Credit is confusing its not as simple as some may say pay your bill and you're good right. No, paying your bill is only half the answer. While its the most important the other things you need to look into are credit inquiries try to keep these at an all time low 2-3 every year or so is okay as they will naturally go away after 2yrs. Its important also to note your credit utilization most banks ex. capitalone will give someone with no credit around $300 usd starting credit line i recommend using them as they also give you a boost to 500 after 3 months of on time payments. keeping utilization around 25% is key to a really good credit score, but that doesnt mean dont spend more just make sure its around there when the bill is due. Also from personal experience dont fall into the trap of paying off charges immediately from the time of purchase you have 30 days until a charge accrues(gains) interest also by paying it off before you actually get the bill you are putting yourself at a zero balance which makes your score good but potential credit lenders iffy as you show no way of being a profit to them and it makes it hard to get more cards and accounts especially from the same lender. All in all just get a credit card like capitalone and pay your bill when it due or in small incremental payments to keep your bill low and dont keep applying in hopes of getting more accounts. Dont go overboard and check your credit regularly as it changes rapidly and you can get a free credit check every 10 days from credit karma or every month from capital one if you have a card with them.

[Sharif]

I would love to participate with the discussions,I am looking forward to were this thread is going 

Funny thing is I just started macroeconomics a day ago heh 

 

@KemoKa 

At points in time I wondered if I would have been better of sticking with business rather than switching to economics but even though I am practically one of the worst economics students in my class,I am still trying to improve,though I don't see any 

[Paralectic]

Count me in!

[DigitalHermit]

I wish to join...

 

I need to learn microeconomics and personal finance...

[Bordermick]

Can we talk about why CAD is so much lower than USD right now?

[Kalle Hänninen]

[themaniac]

My theory on finances:

 

Avoid loans whenever possible. Be patient, save your money, and buy things when you can actually afford them. Credit is a trap (meant to make those who provide it, richer than you), nothing more.

but how else will you get credit with out some type of card

[GeTecknics]

but how else will you get credit with out some type of card

Car loans, house payments, student loans,credit financing at local stores, anything that requires you to pay back over a certain amount of time is credit you can get good credit without ever getting a card though it takes a while 

[Trik'Stari]

but how else will you get credit with out some type of card

Simple answer: I don't want or need credit. I plan on doing things right, and buying things when I can actually afford them.

[themaniac]

Car loans, house payments, student loans,credit financing at local stores, anything that requires you to pay back over a certain amount of time is credit you can get good credit without ever getting a card though it takes a while 

ok

 

Simple answer: I don't want or need credit. I plan on doing things right, and buying things when I can actually afford them.

so you plan on living in your parents house until you can afford a house

[Yummychickenblue]

Simple answer: I don't want or need credit. I plan on doing things right, and buying things when I can actually afford them.

Well if you only have a debit card when somebody steals that card it's a lot worse than if you just have a credit card stolen.

[Trik'Stari]

ok

 

so you plan on living in your parents house until you can afford a house

No, I plan on getting my own place, but I'm going to live frugally until I can afford the things I want. I've seen first hand what happens when you live off of credit. It's not pretty.

 

Well if you only have a debit card when somebody steals that card it's a lot worse than if you just have a credit card stolen.

Not really, you just cancel/lock your account, or use a monitoring service like LifeLock.