Financial planning

[Justin of Flavia Neapolis]

Its strange the amount of people I have met who invested in precious metals believing that and then actively started looking forward to a collapse happening and then doing one thing or another which they thought would bring it about.

I think its nonsense, what you would want during a collapse, which would not be a good thing and have unpredictable consequences to say the least, is to be some sort of prepper who had either tangible assets, ie cars, supplies, fuel.

PMs are merely a hedge against inflation, not an investment. Your friends do sound like they are invested in a collapse. I don't want chaos. I prefer order as it affords me more time to hedge.

Like I said, I don't think (hope we're not) headed towards a full Mad Max future. It'll be more like the Wild West.

 

[Justin of Flavia Neapolis]

Can you say Dutch tulip bulb craze?

Debt/fiat is the modern tulip bulb.

 

[Justin of Flavia Neapolis]

U.S. National Debt Clock : Real Time

You can chase/save paper all you want, but at the end of the paper paradigm that's all you would be holding: Paper

Currency needs to go back to being what it originally was: A receipt for real money

Currently, paper is a receipt for other peoples debt stacked on top of each other.

It's turtles all the way down.

 

[Agent Washington]

via Imgflip Meme Generator

Key word being "Value"

In a dollar collapse, I think people will still grasp to some semblance of order. A storage of value and fungibility at the very least will be needed. The reason metals were used in the first place was because of the enormous amount of value stored in a relatively small space.

Imagine trading $1,300 worth of milk. Will you take the War Rig across the desert? Lots of man hours being spent there as well.

And that's just one ounce of gold.

Gold is mostly there to keep value in times of peace and stability and inflation, I believe.

Hyperinflation = barter economy. (No idea how gold will factor into this. I assume people will have other priorities other than gold - and there's a good chance you won't want to trade it back for the dollar, you'll be trading it into other things.)
Societal collapse = lots of stories about heirloom watches, precious metals, gems etc. being traded for one (1) potato after WWII.

 

[Lark]

Debt/fiat is the modern tulip bulb.

What if I told you gold was the tulip?

(surely I dont have to break out the memes for the hard of understanding)

 

[Lark]

U.S. National Debt Clock : Real Time

You can chase/save paper all you want, but at the end of the paper paradigm that's all you would be holding: Paper

Currency needs to go back to being what it originally was: A receipt for real money

Currently, paper is a receipt for other peoples debt stacked on top of each other.

It's turtles all the way down.

It wasnt working, that's why fiat currency was introduced and guess what? Its worked, it'll keep working.

 

[Lark]

Gold is mostly there to keep value in times of peace and stability and inflation, I believe.

Hyperinflation = barter economy. (No idea how gold will factor into this. I assume people will have other priorities other than gold - and there's a good chance you won't want to trade it back for the dollar, you'll be trading it into other things.)
Societal collapse = lots of stories about heirloom watches, precious metals, gems etc. being traded for one (1) potato after WWII.

The thing about the story of the last hyper inflation that I remember, probably because the people ramping gold love it so much, is about a german going to buy bread with a wheel barrow full of currency, the baker dumped the currency out of it and decided to take the wheel barrow as payment for the bread as it had more value, at least to him.

The strange thing is that while this story is repeatedly told by gold rampers to discredit currency it does not actually feature any gold, it does feature another tangible asset, the wheel barrow, which I think may make the case for purchases of other things, much like the preppers home spun philosophy of a basement to rival that of a supermarket store room.

Though I think its foolish to talk up crisis scenarios like this, whatever the gold bugs in the trailer park are squirrelling away and whatever the 1% would be willing to sacrifice during the sort of incredible crisis which would see the abandonment of fiat currencies I'm willing to bet there'd be more than enough institutions, companies, corporations and wealthy individuals interested in maintaining fiat currency.

No matter how convincing those youtube videos were or those paleoconservative guides to economics were its not going to happen and sooner or later you have to reflect on the tale of the emperors new clothes or 101 other tales of hucksters and snakeoil sales men and consider whether the punt you took on precious metals wasnt just the equivalent of stuff your money in the mattress after all.

 

[Justin of Flavia Neapolis]

It wasnt working, that's why fiat currency was introduced and guess what? Its worked, it'll keep working.

Keep your faith, I suppose.

We have our disagreements regarding PMs, but my preference is for a wide spread. It's not like I bet my house on silver/gold.

Anyways, I'm more interested to talk about cryptos. Just signed up to coinbase. Need to budget for cryptos on top of my monthly PM weight.

I want to minimize my exposure to fiat.

 

[Lark]

Keep your faith, I suppose.

We have our disagreements regarding PMs, but my preference is for a wide spread. It's not like I bet my house on silver/gold.

Anyways, I'm more interested to talk about cryptos. Just signed up to coinbase. Need to budget for cryptos on top of my monthly PM weight.

I want to minimize my exposure to fiat.

I dont see how you can consider cryptos as a better alternative to fiat, that's definitely got to do with a serious ideological shading but good luck to you.

 

[Justin of Flavia Neapolis]

I dont see how you can consider cryptos as a better alternative to fiat, that's definitely got to do with a serious ideological shading but good luck to you.

Uh-huh.

My understanding is that there is a limited amount of coins that need to be "mined." This keeps the value relatively stable, similar to PMs.

Still in my first forays into the realm of cryptos. I'll report back later.

 

[Lark]

Uh-huh.

My understanding is that there is a limited amount of coins that need to be "mined." This keeps the value relatively stable, similar to PMs.

Still in my first forays into the realm of cryptos. I'll report back later.

Hmm, yeah, maybe they know their marks, the whole thing is a social construct, like scarcity itself.

 

[Justin of Flavia Neapolis]

Hmm, yeah, maybe they know their marks, the whole thing is a social construct, like scarcity itself.

Still don't agree, but I can empathize now that you've shown more of your Self.

 

[Lark]

Still don't agree, but I can empathize now that you've shown more of your Self.

well, well, well....

Nope.

 

[Justin of Flavia Neapolis]

The Real Value of Money | Mark Manson

True wealth occurs when the way we spend our money is not simply compensating for how we earn it. Wealth occurs when the way we earn money and the way we spend money are aligned with one another — when our money is earned through a positive experience and spent on other positive experiences.

People who fall into these experience cycles with their money soon become slaves to earning a buck. They begin to see money as the singular purpose of their life. It becomes the whole of their motivation.

Once this happens, you no longer own your money; your money owns you. It is not the currency, you are. And money will spend you as long as it can, until either you stop it or you die.

 

[Justin of Flavia Neapolis]

 

[Maou]

I am actually extremly skilled at creating budget plans, and things like food is the hardest part. But you can never go wrong with "Pay bills first, eat later" planning.

I use a monthly budget scale. Since I get paid every Friday, and my BF gets paid ever 14th and last day of the month. I sort when to pay what bills, on what friday. Spacing them out, depending on due dates, and the amount of money they cost for every friday.

I also estimate the weekly totals, and budget a specific amount for food by the week. I spend all the money at once so I am not tempted to buy extra things that should have gone to a bill by accident. I use a calculator when I shop, and you can easily use your bank app to determine how much you spend monthly on groceries and other things. If you want to save money every month. Look at your bills, and groceries, pick the payday with the most extra money. Save the money from that check.

 

[Lark]

Financial planning never helps me

what have you tried? how doesnt it help? does planning in general help you or do you just wing it?