Topic: Inflation is Poses a Great Challenge for Delayed Gratification - page 2. (Read 443 times)

Yes this inflation really sucks and I agreed to you, before my salary is not only enough but has some money being left but now I need to do 2 jobs for me to feed my family because living in a 3rd world plus inflation really hits so hard, the salary here doesn't increase sometimes I can't even buy small things because I need to spend it to other things so even I will save some money there's already something planned to buy with it.

That is one option, another option is to invest in a good asset which can beat inflation, like bitcoin, and then use a part of that money to buy what you want, and while this will require waiting for several years, depending where we are on the bitcoin cycle, at the same time this is a nice way to buy whatever you want as even if the price of what you want goes up your bitcoin will go up in value too, and on average it should take you less bitcoin to buy what you want in the future than if you bought it now.

So, it took you 4 years before you bought your dream car? And you didn't expect that the price would soar that high? It's a good learning point of your life, I think. Nothing stays the same. Everything will change especially if it's something that is on demand.
Cars, house and lot, food, and necessities. All of this will keep on rising while our population is also growing. It's good that you learn it as early as you can in your life because you will use that on your future decision.
When you start a family and in need of a gas stove, will you buy it now or wait for the price to go down? Decision: Buy now because those items are also increasing in value. Metals and other necessity for creating it do not grow like plants, they will soon be depleted.

Is this dream balanced with the economic forces that you are facing right now and from all the stories you have told, you have saved a lot of money for the car purchase target you want. How is it possible for the price of the car to go up so fast in a short time, is there a condition where the car you want is everyone's dream car, so that the car goes up so fast because it is influenced by increasing market demand

I do not try to suggest that you put the money you have in Bitcoin, but try to count systematically that when you put money in Bitcoin by saving it as a fiat currency more profitable where. When your calculation decision goes well, that's where you will find the answer to postpone the desire to buy the car and there is a solution that you can take later.

Unfortunately, inflation, a process accompanying the financial model, is almost always, with rare exceptions...
Inflation is neither good nor bad, it is natural for the state financial system, where there are subsidized, unproductive, unprofitable directions.
As you understand, the state is responsible for all citizens of the country, and in fact it is FORCED to generate inflation.
Plus, the number of global crises and tragedies like Covid-19 and the terrorist war in Ukraine, and then the economic terror of the EU, launched by Russia in 2014-2022, is still huge.
All this forces governments and countries to take not very popular but forced steps that lead to the depreciation of the money supply.

But there is a solution, for those cookies there is a sufficient amount of money or a desire to save them. It's a diversified portfolio: it's local currency, it's US dollars, it's EURO, it's Swiss franc, it's gold, it's crypto,...

with this approach, inflationary losses will either be minimized, or in general you will receive additional profit within the accumulation period.

You should really be that wise when taking up such step because we know that once you do get that kind of formula and wont really be just making yourself sit still and do make out some actions then you would

really be able to make that 15k savings to be on the works and would potentially be able to make more and just been said about compounding profits then it would really be able to possibly reach out on what you do wanted since you are earning via those investments or businesses that you had made out.Somewhat its never been that simpler considering that we would really be needing to face up some risks on which it would really be just that normal because if you wont take risks then you wont gain something.

It would be always a big challenge for us because we are really that aiming for something and this is why it would really be that normal that you should need to do such step if you do tend to pursue your
dreams on buying something specially a car that of your choice or really you hoped for. Cant really be able to avoid on the effects of inflation is really that inevitable
but if you  do really know on how to play out with your funds and wise on how to make it roll, then you cant really feel that much in speaking to this.

You didn't understand the process completely especially the inflation part so basically we should not save the money in piggy bank so a year later we buy the item we wanted, it's really important to invest the saved money into something so let's say 15K for 4 years in tenure then with ROI of 8 to 10% even compounded and let the value grown near 20K.

But don't give up because you managed to save money for the 4 years to achieve the goal which is the first step of attaining financial stability I mean the Discipline. then save and invest and let the returns and compounding to do the works.

It should be exactly the opposite, if inflation exists, do not delay gratification because you need it right away. However, bitcoin has been disappointing during this period, since inflation is still going on I was assuming that bitcoin would go on getting higher a bit more.

I understand that fed interest rates made some people focus on a bit more towards savings and not bitcoin, but this is not fiat, we should have kept it going as much as we can and that should have been the move forward for bitcoin. I understand that some people wanted to get out, but we shouldn't have gone down as much as 16k, that was too much and it should have been prevented as much as possible. The fact that it is not prevented and the price dropped is a bit disappointing.

Everyone has differences in the economy that occurs when inflation is running. there are people who endure lifestyle or expenses that are not needed at the time but there are some people who can't stand all this and spend money to relieve their stress.



You are one of those people who might be able to manage finances and turn off your lifestyle for the next life. This cannot be done by everyone because the principles of people are always different in the future. But if you have been through all the bad things and it will be easy for you if it happens again or something bad happens

Don't forget about investing in Bitcoin is one of the best hedges against inflation and many people do forget about it. It's already in front of them but they choose to ignore it.

Can't agree more. It truly is one of the challenges that we have to deal with in this stressful life. You'll have to think of necessary things like investing and having a delayed gratification approach for your monetary decisions because with inflation, everything is going up but most of the salaries don't go up.

This is why its never been recommendable on letting those fiat sit idle on your savings account for too long, unless if those amounts are really just that intended for emergency
purposes then it wont really be that much of an issue but if those are really that intended on buying on something, then its never been worth on doing so.
Wise people would really be tending to make use of these funds into something more worth or would really be able to generate up some income which it would really be just
normal that they would really be putting or taking up some risks on making investment or having business just for them to have the chance on earning more.
Not all would really be having that kind of risks appetite but i would say that if you do want to fasten up yourself on achieving financial freedom or adding more income
then you would be needing to take up the risks.

Inflation can erode the value of money stored in traditional savings accounts as the purchasing power of that money diminishes over time. So investing your savings in assets that generate real returns can be a strategy to combat the effects of inflation and potentially increase your wealth. For example, holding assets such as foreign currency, gold, or long-term investments can help preserve assets and provide a hedge against currency devaluation. As long as you understand the nature and potential benefits that go hand in hand and make smarter decisions, this is just a gentle test of this stressful life.

I applaud people that know how to save and prefer paying cash rather than thru loans or credit. But a big amount of savings should not be slept at home or stored in a bank with a very low-interest rate because it is a guaranteed loss against inflation. Even before the pandemic and the war that made the world economy suffer and inflation turned worse, inflations are usually still higher than the low-interest rates that banks are offering. 

The money should be invested so it will grow against inflation. If your country's economy has recovered or if your local stock market is performing well, then you can put part of your savings there. There are financial institutions that offer better rates than banks too. Of course, we need to DYOR and make sure the company we choose to invest in is credible and has been in the business for many years already.

This is what inflation is doing to almost every human making their lives difficult for them, removing and destroying every enjoyment and happiness from them because everyone is just struggling to cover expenses in day basis . Nothing is left with them for their pleasure , happiness ( because obviously everybody is not rich ).

If you can manage your expenses and suppress your lifestyle it will be great for you to experience in the future. many people find it difficult to do this nowadays. they think more about what people say or follow the current trends that don't know how long this campaign will end. if you can save like that, it will be a big key that makes you one of the millionaires later. This is a big lesson for me to go to a better thing in the future.

I don't really feel the impact of inflation because my use of money is very minimal. I always buy necessities not for what is in style or to be resold in the future unless it's an asset to invest in like crypto and gold. yeah that makes me a little calm in dealing with inflation. It looks like I don't have a lot of money but it also keeps me from being affected by inflation.

Inflation can make it difficult to save money for future purchases and goals. As an inflation rates increase, the value of money decreases over time, making it for individuals to save. This can lead people being more likely to spend money now rather than save for the future. It is important that delayed gratification can still be beneficial in the future. To combat inflation is to invest our savings in an assets that have historically outpaced inflation such as real states or stocks. We should also be mindful and have self control for us to be prepared to delay impulsive spending.

Inflation is a common thing in a country's economy, explaining the causes of inflation is of course very complex and complicated, but the easiest thing we have to do to avoid inflation is to tighten spending, when we can make expenses according to schedule then we can avoid inflation.

Something similar happened to me a few years ago. But at that time what I wanted to buy was not a car. But I am raising money to buy a piece of land near my house. of course I had to collect money for a long time and the stupid me at that time was that I saved in fiat. And yes, a few years later I realized that the value of my savings had decreased in value even though the amount had increased a lot. Meanwhile, the price of the land is actually increasing from time to time because it is indeed a strategic location and many parties also want it. But a few years here I started implementing a more effective financial strategy. That is, I save partly in gold and partly I invest. And I also invest in my friend who has a business that is quite advanced and makes me make money with the money my friend used as capital. And a few months ago I managed to buy the land I wanted. actually my intention to buy this land was for me to make a long-term investment. Because I know from 20 years later the price of this service will definitely blow my mind. Because I researched about the price of land in my neighborhood which continues to rise rapidly. But fortunately the people around me seemed not interested in investing in land. In fact, many of them want to sell it. Because they think that the current price is enough to satisfy them. Even though I think 10 years later they will regret selling it.

So basically my method is to divide my savings into 3 parts. one in a deposit in an asset that has a fixed value such as gold. secondly invest it in several fields that can have an increase even if only a little and thirdly I invest in friends who have promising businesses. So that our money can grow to be more. And right now I'm also collecting money to buy livestock. Because there is one of my neighbors who is interested in managing a farm and he is able to look after it and share the proceeds if the cattle reproduce later.

A must thing to be done but we know that not all people would really be that having the confidence or having that risks taking mindset and would rather keeping their fiat into their banks and let it sit and be idle for a long period of time without even realizing that on how bad inflation would be affecting it out overtime or over the period of how many years to come.Unless if you do put it up on something which does give out some interest or really have the chance on making some profits then it would surely cover up yourself into that inflation problem which you wouldnt really be bothering yourself on the time that you do see
that you do have some other income stream or side sources.

In relation on the condition of OP, then if you are really that serious on achieving on something and tends to buy on something then you should really be needing to work hard twice or thrice so that you do
able to cope up with inflation because if you dont really do such thing then there's no way that you could be able to buy it because it would really be keeping it moving in regards into its price.
Once you do have other sources then it would really be just as easy as pie.