Comments on: What Happens to the Money We Don’t Spend? http://frugaldad.com/2010/04/12/money-we-dont-spend/ Promotional Codes, Coupons & Deals + Money Saving Insights Sat, 26 May 2012 00:58:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Richard http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-43036 Richard Thu, 01 Jul 2010 19:31:12 +0000 http://frugaldad.com/?p=5185#comment-43036 I've been an attorney working in private bank trust departments for almost 20 years. I've seen how people with money acquired it and how they retained it. They are smart enough to know that you can never acquire money by spending it. They would sooner die than go into debt to buy consumer goods. They'll go into debt but only to purchase property likely to appreciate. These are the people who, instead of buying iphone after iphone and ipad after ipad, bought the stock of Apple when it was selling for about $7 early in 2003. Today, July 1, 2010, it sells around $260. People with money don't care about consumer goods, cars, big-screen TV's or anything else that the masses "must have". They know all this stuff is junk and that to buy it simply wastes money better deployed otherwise. In short, people with money got and kept it not by buying things but by buying the stocks of companies that sell things to other people...you for example. I'll leave you with this unsettling thought. Suppose you'd had $15,000 in October 1980 and that you'd been of a mind to "invest it". You might have been lured to purchase jewelry, say a diamond ring, on the utterly untrue but long spread lie that diamonds are rare. Any jewelry store would have been happy to lure you in with a lot of special lighting over plush counters served by shills who are trained in how to try to induce you to put reason on hold and think romantically about how happy you would be if only you had a $15,000 diamond ring. They'd tell you it would be "AN INVESTMENT". God help you if you fell for the scam. The ring you'd have bought on Friday, October 10th, 1980 for $15,000 would have been worth about $3,000 on Saturday, October 11th if you'd tried to sell it. It might not be worth even that today. On Friday, October 10th, 1980, stock of Johnson & Johnson traded around $83 per share; you could have bought 180 shares for $15,000. That investment, a REAL INVSTMENT, would today, July 1, 2010, be worth over $500,000. After 48:1 stock splits, you would have over 8,600 shares of Johnson & Johnson paying annual cash dividends of almost $19,000. You can be young in this country and be without money but this is no country in which to be old and without money. If you have no money you have no power. If you want to end up parking cars for a high school kid who owns a parking lot, keep doing what you've been doing. Keep buying "diamond rings". If you want to have some say about where and how you live and on what terms, leave the consumer good on the shelves and buy the stocks of companies that sell things to other people. Just make sure you're not the "other person".. Good luck. I’ve been an attorney working in private bank trust departments for almost 20 years. I’ve seen how people with money acquired it and how they retained it. They are smart enough to know that you can never acquire money by spending it. They would sooner die than go into debt to buy consumer goods. They’ll go into debt but only to purchase property likely to appreciate.

These are the people who, instead of buying iphone after iphone and ipad after ipad, bought the stock of Apple when it was selling for about $7 early in 2003. Today, July 1, 2010, it sells around $260.

People with money don’t care about consumer goods, cars, big-screen TV’s or anything else that the masses “must have”. They know all this stuff is junk and that to buy it simply wastes money better deployed otherwise. In short, people with money got and kept it not by buying things but by buying the stocks of companies that sell things to other people…you for example.

I’ll leave you with this unsettling thought. Suppose you’d had $15,000 in October 1980 and that you’d been of a mind to “invest it”. You might have been lured to purchase jewelry, say a diamond ring, on the utterly untrue but long spread lie that diamonds are rare. Any jewelry store would have been happy to lure you in with a lot of special lighting over plush counters served by shills who are trained in how to try to induce you to put reason on hold and think romantically about how happy you would be if only you had a $15,000 diamond ring. They’d tell you it would be “AN INVESTMENT”. God help you if you fell for the scam. The ring you’d have bought on Friday, October 10th, 1980 for $15,000 would have been worth about $3,000 on Saturday, October 11th if you’d tried to sell it. It might not be worth even that today.

On Friday, October 10th, 1980, stock of Johnson & Johnson traded around $83 per share; you could have bought 180 shares for $15,000. That investment, a REAL INVSTMENT, would today, July 1, 2010, be worth over $500,000. After 48:1 stock splits, you would have over 8,600 shares of Johnson & Johnson paying annual cash dividends of almost $19,000.

You can be young in this country and be without money but this is no country in which to be old and without money. If you have no money you have no power. If you want to end up parking cars for a high school kid who owns a parking lot, keep doing what you’ve been doing. Keep buying “diamond rings”. If you want to have some say about where and how you live and on what terms, leave the consumer good on the shelves and buy the stocks of companies that sell things to other people. Just make sure you’re not the “other person”..

Good luck.

]]> By: Frugal Dad http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40212 Frugal Dad Fri, 16 Apr 2010 19:59:49 +0000 http://frugaldad.com/?p=5185#comment-40212 Battlefield Bad Company 2. I love those types of games. Battlefield Bad Company 2. I love those types of games.

]]> By: investnoob http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40208 investnoob Fri, 16 Apr 2010 18:32:05 +0000 http://frugaldad.com/?p=5185#comment-40208 Now I'm curious. What was the game? Now I’m curious. What was the game?

]]> By: Roundup and Link Love: Season to Season Edition http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40180 Roundup and Link Love: Season to Season Edition Fri, 16 Apr 2010 14:28:13 +0000 http://frugaldad.com/?p=5185#comment-40180 [...] Frugal Dad asks What Happens to the Money We Don’t Spend? [...] [...] Frugal Dad asks What Happens to the Money We Don’t Spend? [...]

]]> By: Shoppers Drug Mart, Clutter, Budgets and More | Million Dollar Journey http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40168 Shoppers Drug Mart, Clutter, Budgets and More | Million Dollar Journey Fri, 16 Apr 2010 10:30:42 +0000 http://frugaldad.com/?p=5185#comment-40168 [...] What Happens to the Money We Don’t Spend? @ Frugal Dad [...] [...] What Happens to the Money We Don’t Spend? @ Frugal Dad [...]

]]> By: –› Tax Freebies, Amendments, and Credits http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40128 –› Tax Freebies, Amendments, and Credits Thu, 15 Apr 2010 13:32:07 +0000 http://frugaldad.com/?p=5185#comment-40128 [...] What Happens to the Money We Don’t Spend? [...] [...] What Happens to the Money We Don’t Spend? [...]

]]> By: Brian http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40110 Brian Thu, 15 Apr 2010 02:23:29 +0000 http://frugaldad.com/?p=5185#comment-40110 Frugal Dad, What game were you looking to buy? $49.99 for a new game tells me that the game either has been out for a little bit or not that popular. I shop at GameStop or other like stores that have used games for sale. There is one such shop near me that I can trade in old games towards new ones as well. I just bough Modern Warfare 2 for $39.99 used and the new copy is still selling for $59.99. I would also recommend Blockbuster to rent games you are interested in before buying them. Some games out there are advertised as awesome games but the reality is that they aren't all that fun. Frugal Dad,
What game were you looking to buy? $49.99 for a new game tells me that the game either has been out for a little bit or not that popular. I shop at GameStop or other like stores that have used games for sale. There is one such shop near me that I can trade in old games towards new ones as well. I just bough Modern Warfare 2 for $39.99 used and the new copy is still selling for $59.99. I would also recommend Blockbuster to rent games you are interested in before buying them. Some games out there are advertised as awesome games but the reality is that they aren’t all that fun.

]]> By: Jayson http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40092 Jayson Wed, 14 Apr 2010 16:21:41 +0000 http://frugaldad.com/?p=5185#comment-40092 Hi Anthony, I appreciate your humor. But to be clear, piggymojo is free for the time being. Once we're confident it is truly helpful to our users we'll charge for it, but only $4/month for a couple or $3/month for an individual. And it's guaranteed. If a couple doesn't save more than $45 together in one month then the next month is free. So, for the price of a fancy cup of coffee at starbucks you can use a service that could help you and your spouse save a bunch of money together and have some fun doing it. Granted, it's not for everyone, but if you and your spouse want help saving for a specific goal by cutting back on unnecessary spending, then this might be just the thing for you. Hi Anthony,
I appreciate your humor. But to be clear, piggymojo is free for the time being. Once we’re confident it is truly helpful to our users we’ll charge for it, but only $4/month for a couple or $3/month for an individual. And it’s guaranteed. If a couple doesn’t save more than $45 together in one month then the next month is free. So, for the price of a fancy cup of coffee at starbucks you can use a service that could help you and your spouse save a bunch of money together and have some fun doing it.

Granted, it’s not for everyone, but if you and your spouse want help saving for a specific goal by cutting back on unnecessary spending, then this might be just the thing for you.

]]> By: Alexis http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40091 Alexis Wed, 14 Apr 2010 15:48:47 +0000 http://frugaldad.com/?p=5185#comment-40091 I am learning to make sure that every dollar that comes in has a name & a place to go so it doesn't burn a hole in my pocket. I went online & bought the dave ramsey envelope wallet. It allows me to put the money I bring in straight into specified envelopes that are designated for certain bills or payments. Its super helpful & keeps me & my budget on track. I am learning to make sure that every dollar that comes in has a name & a place to go so it doesn’t burn a hole in my pocket. I went online & bought the dave ramsey envelope wallet. It allows me to put the money I bring in straight into specified envelopes that are designated for certain bills or payments. Its super helpful & keeps me & my budget on track.

]]> By: forlan http://frugaldad.com/2010/04/12/money-we-dont-spend/#comment-40050 forlan Wed, 14 Apr 2010 06:44:47 +0000 http://frugaldad.com/?p=5185#comment-40050 It is difficult to track money that we do not spend. Sometimes I just spend for other spending. It is difficult to track money that we do not spend. Sometimes I just spend for other spending.

]]>