Topic: Economic problem, why is fiat difficult to hold. - page 5. (Read 1242 times)

That is really a huge problem; it is like you can't control yourself because you keep spending it, but again, I am also the same with that; sometimes intended money is spent on other stuff, which I regret afterwards, but having control over your money and being able to save it for later use is best, unless you are doing some groceries but are caught short because of the price of foods, which is when you need to re-adjust your budget. It is really best not to spend your money on something intended for you, as you'll be out of budget before your salary comes.

mindset that must be changed to be rich. no matter how much our income is, it would be better to set aside a little to invest, so that in the future it will make our life better. it's different with people whose economic capacity is below, they have little money most of them will spend it on something that is actually less needed. therefore many people from the lower economic background stagnate in that position. another thing for rich people who can't seem to let money go idle, they look for ways to develop that money, on the other hand environmental factors greatly affect their mindset

You are right. Because people who are not financially capable they only hold fiat for a short period of time. sometimes at the end of the month they receive a certain amount of salary and a few days later the money is used up to buy all the necessities and pay some bills. So they sometimes don't have a chance to hold on for a long time. because the money they hold will be directly used for their daily needs. and the circulation of money among the lower classes sometimes runs faster than among the above. Flow in and out among the bottom so heavy. Physical Fiat is of course the most dominant used by the lower classes. because even among them there are still many who do not have smart phones that support digital payments. or even they don't have time to learn about digital money. they just focus on working every day to make money.

Therefore, the poor do not have to worry about holding fiat and how best to do it, because they simply do not have that much fiat, since they spend everything on food and basic necessities.

Those who can save something will keep fiat, at least some part in the national currency, and some reserve in a more stable currency. And other funds will be invested somewhere, either in a business or in real estate, this has always been a good decision, as it will contribute to further income. For the rich, there will be an even greater opportunity to diversify their finances, perhaps into gold or bitcoin, as their income may allow them to do so. The more you can distribute investments in different directions, the more protected you will be.

Since I firmly think that no amount of money is ever too much to spend, I may state that your spending habits are to blame. However, having wise spending habits stems from having sound financial planning. Know that tanytime  money comes into your hands and you always want to get everything you need at once you may hardly get opportunity to have saves.

One issue remains, however: if a person earns little money and always he has a lot of expenses on it head, money will hard stay on it hands.Therefore, sometimes it's not that you have money on your hands; rather, the reality is that you are not earning much.be aware that when someone doesn't earn well, they will struggle, despite their best efforts to play it smart and save some money.

I don't know but I think myself also experiencing same thing as well the worst part of it is that holding at hand for a specific purpose if that purpose weren't accomplished within the 2 to 3 days I would end up using that money for other thing that I think is more valuable than what I planned to run with the money before.
When you hold ATM card thinking you won't touched the ones stored in your account you may still found out that same money you've been something else have been used for another refer purpose at times is very annoying seeing yourself ending up doing something you didn't even place in your budget for that week/Months.

Well, the higher the price of goods on the market, the lower the price value of a fiat. That is why those holding fiat will increasingly lose value due to eroded inflation. But holding fiat cash is sometimes necessary for emergencies because it's easy to use. And yes, for the lower classes of society at this time they are only struggling to survive by meeting their daily basic needs. Everything they buy is essential things for survival like food for example. for the middle and upper class, maybe they can still overcome the current conditions. and they can still invest and save. because the middle and upper class usually always produce more than what they need to buy. It's just that there are also middle class people who live extravagantly and always buy things they don't really need.

Different strokes for different forks.

In recent times, the cost of living in my nation has doubled and half the population are often trying to feed on the other but in the real sense, it's just citizens killing themselves over and over.
It makes it hard to save. Especially when yourliving below the table, savings or investing in any sort of project or something that wouldn't fetch immediate money isn't always an option. Its always about eating and aing bills settled over and over.
It's a wheel and it goes on cycling.

Fiatbin itself poses a different impression than when we have to look at bitcoin. While one is an investment or asset, the other is just pit there looking like what to settle some expenditures with.

Sometimes the problem is not people who spend their money on unnecessary things it is simply that what they earn is not enough, so saving or trying to invest in something worthwhile becomes difficult due to the increase in prices of certain products that are essential and  not last. A person who lives in a country whose economy is unstable and also has a large family,  has the responsibility of maintaining the well-being of their children so in this case consumption would increase which it implies that it does not yield what is necessary, now imagine that they get sick having to cover the medicines, plus the consultations...how could someone save if inflation takes them to the ground???

Life is no longer as easy as before, now most work to survive, that's why I believe that people who have that small capacity to change this scenario that many live by just having for the day, should take advantage of this opportunity and start to manage their money responsibly so they can change their future.

Spend what you have to and put away as much as you can is sound advice from the past that can help us all out now. However, I would want to present an alternative viewpoint: "profit more." Inflation is a sly robber that nobody hears coming. Fiat currencies depreciate over time, necessitating the pursuit of alternative means of enrichment.

Bitcoin, it seems, is the modern equivalent of the Gold Rush. Bitcoin's allure as a decentralised, finite money offers the possibility of significant long-term gains. While it does call for a certain level of technical knowledge and a willingness to take on some risk, the thrill of having a stake in the future is well worth the effort.

If you are talking about fiat as national currencies in relation to the dollar, then yes, inflation will be even higher, but now we see that the US dollar is also subject to inflation and although it seems to be a more reliable way to store savings, it is also subject to inflation .

And bitcoin has already proven to be very good at maintaining purchasing power on a long-term basis, making it a very valuable asset to both save and invest.

Right now bitcoin is very volatile, but I'm pretty sure that over time, as it gets more expensive, it will become less and less volatile, but it will also be just as good for preserving the value of our funds to keep them from inflation.

If you hold fiat money, its value will decrease as time goes by relative to the market. the value of fiat money against the dollar has been depreciating every year. Holding Bitcoin is much riskier than fiat money because its inflation rate is much higher.  But its profit rate is also very high because Bitcoin is a high potential coin that can multiply profits very quickly and can also cause losses. So the more you want to gain, the more you have to have the ability to take loss responsibility

It's all about the person who handles the money, there are some people who came from zero and make an earning with their money through their hard work and makes those to earn more until they reach financial freedom, somehow the opposite of it is the person becomes a one day millionaire that they have now a huge amount of money because of being irresponsible they spend immediately and after a couple of months they are now broke again. The other person who really knows how to handle money is even from nothing they manage to grow their money and continuously happening. At the end, it depends on the person's opportunity some people have their money but they cant make an investment due to survival needs recently we are experiencing inflation that makes the price of their money getting down. Seek for the future or suffer for your satisfaction right now.

Because human nature is never satisfied with what he has, then when he sees something he wants and has money in his hand will try to influence him to buy. When life is not well-conceived and money is not placed on productive things then money will continue to be used, moreover human nature is never satisfied and often spends money not at the stage of urgent needs, but to fulfill a lifestyle. Patterns and thoughts of life like this are very difficult to collect money/savings, so special thought is needed on how the money we have can be placed more productively.

If this condition occurs to you I have a few insights that you might be able to use, way every time you have money is to buy bitcoin or gold as a step to avoid wasting money on unnecessary purchases. When you choose to buy gold, the concept can be stored through your wife or anyone you trust and if you intend to buy bitcoin keep it in a secure wallet and never sell it before it reaches ATH.

The point is to what extent are you able to make money every day or month, expenses will be in accordance with income because when we have no income, regular expenses as daily necessities will stop and be unstable. Bad habits regarding unproductive spending due to the absence of a clear financial concept and not the right steps to control financial resources for the future.

Fiat is a serious economic problem, it can be said that the source of economic problems comes from fiat because countries are free to print fiat, in contrast to countries that print fiat based on gold or silver guarantees so that the trust of fiat holders never decreases.

The average spending per month is usually fixed for salaried personnel. This needs budgeting and you can perform this in a few years of obsering. Some extra spending can always happen but most of the time you can manage. Fiat is needed at hand because of daily necessities and use unless of course you live in a country where Bitcoin is very easy to transact with.

Valuable items like gold and silver or real estate are long term assets which I always encourage. Bitcoin stash can also be stored for long term. You have to diligently spend your monthly salary in order to be able to buy these assets.

it's hard to avoid a sudden need and at the same time really hold a fiat, so it can be accidentally used but it really needs to be finally used. I agree with you, if you have cash or savings in a bank that can be withdrawn at any time, you can be sure that later it will be easily available and will accidentally become a necessity to be used, even though maybe the previous intention was not for that. holding fiat is very difficult to be able to avoid not being used later, apart from changing its form in any investment. but if it is changed in the form of an investment that can hold up because it is not easy to sell quickly, it is certain that it will not be used

Always play things on the backfoot for best security.  Its not the policy of most but the best idea for long term financial aptitude, you play the game using the 8/10's rule.     That rule and Im sorry for lacking a source exactly but the idea is simple enough; the difference in walking besides a cliff and walking on the edge of pavement is different in that you can never cross that line by the cliff or its a large distance fall.   In this way we allocate our most important decisions with a 8/10's rule, never use all you have never aim or allow this to occur.    If you pass close to 10/10 of your money you have failed to be secure even if you clear all the bills that month, play safer.
  It is discipline but also common sense to some extent.   Expect the unexpected, large bills and poor health or any event can push your finances badly it will happen so never go near to the edge in life changing event decisions.

I think the era of telling people to live below their means is over because even their means are dizzying enough that it could barely afford you anything, that’s unless you’re willing to live inside a cardboard box on the street with a rusty cup in one hand groveling to people for money and for food. Have you gone outside and checked the prices of common daily items like food? You’d be surprised!

At this point it’s not enough to just tell people to live below their capabilities in order to survive, if that would be the case everyone in here’s gonna be filled with gall stones from all the ramen noodles we’ll be eating. Change in the way the government handles and processes money is more important than anything since they are the very reason money is losing value anyway!

Quite a lot of people are not disciplined to the extent of holding tight to the money they have at hand, because you will definitely have needs coming that you cannot resist. Just like you said about wanting to eat at the restaurant, yea, I can be passing an eatery and just see some good-looking donuts or meat pie, and I will develop an appetite for it, and unless I buy it and eat it, my mind will always go there, and sometimes the desire to eat those snacks might even come when i have eaten something else already. Also, you could just see a nice cloth, and because you have money on you, you will feel so tempted to spend it. Quite a lot of people don't have the discipline to hold money; they will just spend it in an unplanned manner.


Cheers 🥂, Dr.Bitcoin_Strange 👺👺