Inflation is Poses a Great Challenge for Delayed Gratification - page 4.

Eternad

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Quote from: alastantiger on May 10, 2023, 03:07:50 PM

That is, delayed gratification isn't as rewarding especially during inflation, recession. I agreed with them. Do you?

Regardless of inflation, delaying your gratification just to purchase a depreciating asset which is a car is not worth it all because its value decreases the moment you purchased and use it. It can’t compensate for the time you missed out with your friends and the happy life that you can have just to purchase this car.

I dream having a car but if took you a long time just to purchase then it means that this kind of luxury doesn't suits you because you can’t afford it without sacrificing most of your precious time just to save. What will happened if the car got damages and need repairs? It will cost a lot and give you a hard time on saving once again just for repairs. Is it worth it to save for a long time just to purchase a depreciating asset??

Oasisman

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Quote from: Darker45 on May 10, 2023, 08:42:32 PM

Had you known that inflation would wreak havoc to the purchasing value of your money, you would have taken a loan years ago and bought your dream car. At least you will be paying now with an amount with lesser value.

Good advice. This is where loans sets a good example rather than saving fiat (in a bank) for several years to get a car or house that we don't know how much the inflation rate would rise in the next year or two.
Another option would be to invest to an asset with low risk involved but could protect your money from inflations. I say gold or real estate, but I'm leaning towards the real estate. I can also say Bitcoin for long term perspective.
Saving fiat for me is like giving away free money to the bank because the inflation will kill the purchasing power of your money and the bank used your money to lend it to someone and of course earned an interest with it.

Darker45

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This is absolutely true. And that's why saving in fiat could be very bad to you. Had you saved in Bitcoin, you would have already bought your dream car, possibly even two of them and the top of the line.

Anyway, I wonder, has your dream car not cheapen a little considering that there could already be new models on the market?

Had you known that inflation would wreak havoc to the purchasing value of your money, you would have taken a loan years ago and bought your dream car. At least you will be paying now with an amount with lesser value.

STT

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Saving money is a depreciating asset worth so what happened is the value of the money saved declined vs a fixed cost (commodities even plain metal will retain its value in general though erratically, a working asset etc. is superior to plain cash imo). What could work is you decide to buy the 2020 year model of that car and buy it second hand, the devaluation of car value after being used is greater then even cash inflation loss of value so you would get what you want, but if you want new every time without compromise it doesnt especially work for you.
Your premise is somewhat correct, inflation ruins order flow in the end because prices are uncertain and eventually all business is impeded by the volatility. A car program I've seen which is also relevant where they try to trade up cars by fixing minor problems on each model and selling it on, eventually they get to trade upto the wanted model. Its quite funny thats possible but I've heard of it being done realistically if not easily.

hatshepsut93

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Normally inflation is only a few percents per year, so over 4 years it wouldn't be so dramatic. The current inflation is the result of covid and the war. People may say in hindisght that gold or Bitcoin are a better store of value, but gold and Bitcoin also crash from time to time. There is no perfect store of value that is immune from losing its value.

goaldigger

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Quote from: Pity Token on May 10, 2023, 03:24:04 PM

If you wanted to make money to buy a new car, why not get a job and just put your salary into bitcoin?! I'm sure that a few successful trades would help you on your way. Just avoid leverage trading and sh#tcoins, and you'll get there in no time

Probably because of the risk with Bitcoin and same scenario, there’s no guarantee for the price pump. Savings is a good idea for that goal but unfortunately, the cost of the car increases for many factors and not just about the inflation. One good here is that, you are able to save the money so when you needed the money you can easily have it. Try to invest as well and look for an investment that will fit your risk appetite, don’t just invest without having any knowledge about it.

Hatchy

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Sometimes, every delay can be a success. What if the so called your dream car isn't the car actually meant for you and God is just working in misterious ways to open good doors for you? You shouldn't stress your self too much trying to save up just to use it all on one item.

Buying a car with all your savings? what will you use to power the car? How would you pay for maintenance and other issues that would arise from buying a car.
Just look for a good investment to put your savings on for now until you yield profits, then use your profit to buy a car. It mustn't be your dream car if it's too expensive.

usekevin

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Inflation is the needed one in the economy,because of the inflation people demand of the product will increased.When ever the demand for the product increased,we can able to produce the product to get some profit from it.If your delayed the product produce,the demand meet the supply and the economic This can increase the demand of the market,the same market with new prdoduct.Like wise when the product is enormous in the market,the money supply will be increased by the central Bank of that countries will increase the money.Then people have money to buy the additional assets as compared to before.Most important one is the money can be used to the all old desire profits.The excess can used as the saving for your future.

Mahanton

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Quote from: alastantiger on May 10, 2023, 03:07:50 PM

Some time 4 years ago, I started to save so that I can buy my dream car which was around $15,450. I was determined. I cut a lot of costs and delayed so many gratifications. For example, I stopped going out with the boys. I did a lot more recycling. I quit eating out and opted for cooking my own meal, I didn't buy new clothes, jeweries, electronic devices etc. I was pretty determined to reach my car saving goal. Before I knew what was happening inflation struck and it swept across all industries. Did you know that my dream car that was an equivalent of $15,450 rose up to $23,680. My heart sunk. It took me doing some additional jobs and twice as much time to rise the new money. So, when someone said that inflation posses a great challenge for delayed gratification. That is, delayed gratification isn't as rewarding especially during inflation, recession. I agreed with them. Do you?

Lets just accept the fact that inflation is an inevitable thing for us to avoid out.Yes, we do make out some sacrifices when it comes on trying out to achieve our goal or targets but if those money you had saved up would be in form of fiat then stored in banks then it would be subjected to have that kind of situation unlike if these amounts are really that been put up on an investment which it could potentially be able to gain up profits more. Somehow this would really be actually depending on a certain individual since not all would really be that risks takers and would eventually just sitting around on much less risky space and wont tend to go far
with those kind of decisions which is something that would really differ into each person.

It is really that a huge challenge for us if ever we are saving in fiat where inflation could really affect that much. If we are really that eager and serious on reaching goals then dont stop just because you've seen that the price had increased.Its true that you would need to work hard more and would be wise on finding other sources of income or would really be touching up that investment thing as long it would
benefit you out and would be fasten up the process on achieving your goal. Dont give up!

Ojima-ojo

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Quote from: Pity Token on May 10, 2023, 03:24:04 PM

If you wanted to make money to buy a new car, why not get a job and just put your salary into Bitcoin?! I'm sure that a few successful trades would help you on your way. Just avoid leverage trading and sh#tcoins, and you'll get there in no time

I don't think that is the best possible advice to a noble who is not a pro in trading and this kind of advice can lead to losses since the member may attempt to seek that quick route that will end him in more great danger.

Buying Bitcoin is a good idea but then he must be willing to wait for a long time even longer than expected if he continues saving the way he explained in this thread., let's make a point clear when having a target savings plan that has a fixed time, Bitcoin won't be the best option as the choice of investment at that point since Bitcoin risk factor is higher in this context.

Pity Token

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If you wanted to make money to buy a new car, why not get a job and just put your salary into bitcoin?! I'm sure that a few successful trades would help you on your way. Just avoid leverage trading and sh#tcoins, and you'll get there in no time

alastantiger

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Some time 4 years ago, I started to save so that I can buy my dream car which was around $15,450. I was determined. I cut a lot of costs and delayed so many gratifications. For example, I stopped going out with the boys. I did a lot more recycling. I quit eating out and opted for cooking my own meal, I didn't buy new clothes, jeweries, electronic devices etc. I was pretty determined to reach my car saving goal. Before I knew what was happening inflation struck and it swept across all industries. Did you know that my dream car that was an equivalent of $15,450 rose up to $23,680. My heart sunk. It took me doing some additional jobs and twice as much time to rise the new money. So, when someone said that inflation posses a great challenge for delayed gratification. That is, delayed gratification isn't as rewarding especially during inflation, recession. I agreed with them. Do you?

Topic: Inflation is Poses a Great Challenge for Delayed Gratification - page 4. (Read 555 times)