[Economics Thread] Moe Money, Moe Problems

[themaniac]

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.

 

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

but (at least how i see it) renting a place end up costing you more then just getting a house with a loan in the long run

[Trik'Stari]

but (at least how i see it) renting a place end up costing you more then just getting a house with a loan in the long run

The difference there, is that I will be able to afford renting, whereas getting a loan basically traps you "You lost your job and can't pay your loan? Fuck you, pay me" is essentially how it goes. It's basically what happened to my parents. They lost their jobs, loan companies and banks didn't give a shit, and ruined their lives basically.

 

If they had just been renting, and bought cars they could have afforded, they'd have probably been fine.

[Fred Castellum]

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.

Credit is only a trap if you fail to utilize it efficiently and abuse it. Many business interactions are done on credit and end up quite profitable. I'm not just talking about transactions done on a small consumer level.

[KemoKa]

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 

Oh, yeah, I'd totally love to participate in this thread, everyone should be forced to learn economics at some point (though not in the form of playing Pizza Parlours in class and being graded on how your menu looks.)

[KemoKa]

Credit is only a trap if you fail to utilize it efficiently and abuse it. Many business interactions are done on credit and end up quite profitable. I'm not just talking about transactions done on a small consumer level.

This is true. However, I don't think credit cards should be given to people who don't understand how they work. Otherwise they get into huge, huge trouble down the road. And for a poor student like me, debit card for the win.

[GeTecknics]

but (at least how i see it) renting a place end up costing you more then just getting a house with a loan in the long run

depends on how much renting is good for a temporary situation but when you can buy a house with a reasonable loan your fine because after you pay it off you do have a chance to make back some money.

 

The difference there, is that I will be able to afford renting, whereas getting a loan basically traps you "You lost your job and can't pay your loan? Fuck you, pay me" is essentially how it goes. It's basically what happened to my parents. They lost their jobs, loan companies and banks didn't give a shit, and ruined their lives basically.

 

If they had just been renting, and bought cars they could have afforded, they'd have probably been fine.

i understand where you are coming from credit can kill you if used improperly and should be used with the goal in mind of never needing afterward but i dont think that should completely turn you off credit as if it is utilized correctly it can be very profitable and open more doors to opportunities like my parents have done to where they no longer need credit for the most part with their business.

[KemoKa]

but (at least how i see it) renting a place end up costing you more then just getting a house with a loan in the long run

This is why you save up for a while and live on toast and pasta for a few years, and then buy your house outright. It's hard and takes a long time but you'll step sidestep the fail train.

[GeTecknics]

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.

depends having 2 debit cards seems to be the best as 99% of the time you can get your funds back if you report it quick enough and still have access to a seperate account with a credit card especially if its your oldest credit account can really hurt your credit score since your oldest account is then gone and has to be canceled though with a credit card you are a lot safer as it takes a longer time for purchases to go through and they cant overdraw they just get declined

[Kalle Hänninen]

This is true. However, I don't think credit cards should be given to people who don't understand how they work. Otherwise they get into huge, huge trouble down the road. And for a poor student like me, debit card for the win.

That's not really matter of regulation (politics). Bailouts are.

[Vitalius]

@MyInnerFred

Am caught up on thread. Will start considering other beginner topics to cover. Should save Intermediate & advanced for later probs.

[Sharif]

As far as I know balance of payments refers to the inward investment in a country and outward investment /exports but how does this effect a currency of a country, I am bit confused on, can someone explain please

[Crowes]

I'm not entirely sure if this belongs here but I've been contemplating this question for some time, and none of my friends are capable of answering it without finding themselves at an impass. See what you think.

 

 

What if money never existed?

 

(We're assuming everyone does everything out of kindness and doesn't comprehend the possibility of currency)

[Fred Castellum]

Just a update, this thread is on hold till further notice x.x

 

I'm not entirely sure if this belongs here but I've been contemplating this question for some time, and none of my friends are capable of answering it without finding themselves at an impass. See what you think.

 

 

(We're assuming everyone does everything out of kindness and doesn't comprehend the possibility of currency)

If money didn't exist, then it would simply become what it was like before money in coin or dollar form existed. Items would hold the value that coins and dollars do like they did in the past before currency existed.