found an interesting story on reddit:
https://mustsharenews.com/early-retirement-simple-meals/TL:DR The moral of the story is at the very end of the article...
"if the yen continued to weaken, achieving financial freedom might remain out of reach, rendering his 21 years of hard work seemingly pointless and tragic."Surely from the article we should realize that there seems to be a problem of holding your wealth in cash, but I suppose if you might be trying to keep your wealth secret, then also end up resorting to cash, even though in the last 10-15 years we have known about bitcoin and perhaps other ways to store our wealth, and even if the guy in the article might have ONLY recently learned about bitcoin (which surely this guy seems to either not know about bitcoin and/or to not necessarily believe in bitcoin as a place to hold value), that may well be a good improvement since many of us should realize that it is not good to hold very much value in cash or other depreciating places.
Another thing is that I am all for frugality in the earliest of years of wealth accumulation, yet many of us likely come to realize that if our saved money is either holding its value or appreciating in value, then we are going to end up with more options to be able to transition from accumulation of wealth into a kind of maintenance mode, and even by the time we might get to ou maintenance mode, we should be able to start to raise our standard of living...
So getting rich or increasing in our wealth tends to be a an empowering process along the way and not an all or nothing proposition, and it need not necessarily go from complete frugality to complete lushedness..
There should be abilities for any wealth accumulating person to improve his standard of living along the way and to improve our well being along the way without even necessarily dipping into the principle of our wealth.. Frequently I suggest that the earliest years of wealth accumulation are the most difficult, and surely I can understand how anyone who is serious about wealth accumulation wanting to make sure that they do not hinder their wealth-accumulation process by devolving into overspending and slowing down the building of their stash (and/or their overall principle size), yet again that brings us back to the problem of holding our wealth in either cash or in some other kind of ways that might not be either holding its value or appreciating in value.. so then after so many years of building and stacking, we are never really able to reach our goals.. and surely many common sense ideas already capture the basic concepts that investing is more important than holding cash, yet even if cash is more liquid, surely many of us bitcoiners have found a bit of a likely cheat-code in our keeping decent amounts of value in bitcoin, even if we still might keep some cash and some other kinds of investments.
I've not heard anyone advise others to save for about 17 years.
People's grandparents used to do I think.
But mine have all been dead since about that time.
For sure the idea of saving is not a bad one, and so for sure, the criticism of savings relates to the ongoing debasement of cash - and frequently people are still mislead about whether saving is a good thing or not - and yeah a lot of the debasement of the cash does encourage poor people to not save, since the cash is not holding its value.. and so if they do not have any place to put their money in order to hold value they will spend their cash more quickly... and sometimes their consumptive goods will hold value more than the cash would have had done.
There do seem to be quite a few investments that have come available to normies, including bitcoin, yet normies still might not appreciate the value of investing and/or savings because they have been so perverted over the past several years... including the largely disappearance of the interest rate... and yeah, sometimes the interest rate that banks provide does not even keep up with the rate at which the money is debased (or the rate at which prices go up, which also varies from product to product).
Banks always have a win-win scenario for themselves. Saving money in Banks looks lucrative but the profit given by Banks is proportional to inflation rate. So if you are saving money in Banks (say 5 to 10 years) then you get profit which will be neutralised by inflation rate.
I want to buy a new car and for that I am saving money but whenever I am getting close to value of car then price jumps to new higher value. That's why I gave up idea of buying new car and gave up the concept of saving money to buy new car.
To me you must have some cash in savings that is readily available to counter your necessary and emergency needs, money over that must be invested somewhere.
Each of us still has to figure out how to balance where we keep our value. Sure one of the problems with new cars is that they are expensive from the start, but they also tend to depreciate quite a bit in the first few years, so anyone in their earlier stages of building wealth should not be buying new cars anyhow.. they are not very good financial investments, even if they might be practical and status symbols, and sure there could be cases that you prefer to buy new cars and then just hold onto them for 10-15 years before buying another new car, and so new cars bought with long time horizons might not be poor investments even if they depreciate a lot the first few years of ownership.
There could be some danger if you believe that all of your cash needs to be working all of the time, and one of the aspects of an emergency fund is that it is in a kind of liquid form that can be used right away, if you lose your job (so you suffer from cashflow income issues) or some kind of additional expenses suddenly come up. You have to figure out some kind of a balance in regards to where you keep your various forms of cash that might be back up funds for short-falls or if some of your saved funds might have some kind of a target for something that you plan to purchase, with perhaps some kind of a tentative date regarding when you would need that cash or if you might have it working for you up until that date, also can be problematic to put your some of your extra cash into a some kind of a working fund if the fund has potential volatility in terms of the timeline that you expect to need such cash.
Each of us have to figure out these kinds of balances, and surely poor people are likely going to have a lot more temptations of making sure that most if not all of their cash is working in some kind of a way, and that might be part of the issue why so many poor people have difficulties making progress in terms of their building wealth because they likely need to reach a kind of a velocity threshold in which they might not necessarily feel that they need to have so high of a percent of any savings that they have as having to be working... because even though an emergency fund, reserve funds and/or float do not necessarily feel that they are doing anything, poor peeps are likely never going to make any progress if they keep having to dip into their investments (such as dipping into bitcoin) at times that are not completely of their own choosing.
By the way, I understand that cars might not be the only thing that you might be saving for that might have a relatively short time horizon, yet I personally consider that you are not actually investing into bitcoin unless you have a 4-10 year or longer timeline on any money that you put into bitcoin, so if you choose to put some of the money that you are saving into bitcoin for less than a 4 year time horizon, then you are gambling/trading rather than investing, and sure it may well end up working out for you... and so if it is something that you are willing to do with some of that money that you are saving for a car or for whatever else, then that's your choice, but if you get sucked into some kind of a trap that you are frequently putting your short term money into bitcoin, you might get stuck with BTC price moves against you regarding some or all of that extra money that you might be putting into bitcoin that you might need in the shorter term... and yeah, you could have all kinds of categories of extra money that you are stocking up for 1) car, 2) vacation 3) being able to take your spouse out for dinner, 4) furniture, 5) computer/phone 6) house maintenance 7) braces for your child, 8.) Bicycle for your kid, 9) etc.. and yeah those various goods/services have different timelines and so perhaps differing levels of priorities or urgency too in terms of reaching some of them.. and surely some of those categories of savings you might consider that for sure you need to keep that in cash.. and others you might be able to be a bit more loosey goosey about when you are going to make such purchase(s).. so if your timeline is less urgent, you could take the chances with some of that to put into bitcoin or into some other investment that might be more volatile than cash and also might end up causing you to not be able to sell if the price of the investment that was supposed to be your savings moves against you after you put your extra (purportedly earmarked) money into it.
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