Brother Shikamaru : Understanding Money (Basics)

Discussion in 'Brother Shikamaru' started by Shikamaru, Jul 11, 2011.

  1. abstract219 ...standing on the shoulders of giants

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    This is a phenomenal series. Glad you are taking it slow for myself and others. Love reading your words, here and elsewhere.
    Those "emotional purchases" you spoke of early on.....I struggle with that.
    I agree with Sis. Destee. Concerning children's need to stay current...at times, what is rational for an adult....seems downright cruel to a child.

    We have a small co-op group here in Philly. Merchants, home growers and even the youth are involved. We bulk buy based on contributions and donations, and offer them at lower cost. Families and members are welcome to barter their services. Glad you brought that to the table.

    Im encouraged that this info is here. I'll keep reading.
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  2. Shikamaru Well-Known Member

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    I do too :).

    We all have "toys" we desire to buy. The trick, in my opinion, is 1) giving yourself a controlled outlet for buying "toys", 2) buying your toys in a manner which is reduced cost, and 3) building the habit of saving money.

    A budget is a good way to redirect people towards considering their finances in a rational manner. Many people avoid doing a budget for emotional reasons.

    Hear, hear :).

    One way to kind of "buy in bulk" with your bills is to pay your bills ahead of time.
    Some bills if you pay 6 months to a year in advance, they will give you a discount.
    From my emotional standpoint, it feels nice to know services are paid in advance, receive a discount, and not have to worry about that bill for the next 6 months to a year.
    Another way to save money can be to pay in cash. If one pays cash for many purchases, you can demand a discount. This can be substantial.
    "Cash is king" applies in a great degree to large ticket purchases.
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  3. Shikamaru Well-Known Member

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    Inflation is the term one may hear bandied about on TV.

    What people such as you and I are really concerned about is PURCHASING POWER.

    Inflation is controlled by government or more than likely, some centralized bank.
    Inflation is the rise in the number of units of currency out and circulating amongst the public.

    Purchasing power is how much bang for your buck do you get.

    Example:

    In 1930, a loaf of bread cost $0.01.
    Today in 2011, a loaf of bread could cost $2.00

    Take a $1 FRN (Federal Reserve Note) in 1930 to buy bread. You could obtain 100 loaves of bread with that $1 FRN.
    Take that same $1 FRN, save it till 2011. You can afford half a loaf of bread.

    In about 70 years, your purchasing power went from 100 loaves of bread down to a half a loaf. THAT is purchasing power or loss thereof in this case ....
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    Destee destee.com

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  4. Shikamaru Well-Known Member

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    Hard money is gold, silver, and copper coin.

    Soft "money" is banknotes, folding "money"

    Specie is metallic money issued by public authority.
    Specie is constitutional money.

    Money, technically, is coinage.