The Economic Matrix!!

[Ricky]

All of this and none of you will examine the expat. lifestyle.

Where do you live? I've considered saving up money and retiring early in another country.

 

[Francisco d'Anconia]

the problem is that the government is too big, all those taxes and shiet, i heard if u get an inheritance you have to pay like 50% of taxes.

people should never rely on the government.

More people should listen to Milton Friedman, friederich hayek, etc.

Think about it this way:

1. You're taxed when you earn money.
2. You're taxed on the money you make on investments.
3. You're taxed when you spend money.
4. You're taxed when you save money.
5. In some instances a person is taxed when they are given money.
6. There's a tax when a person dies.

Yeah, the government has you whenever you use currency in any way.

 

[Francisco d'Anconia]

I did work for Harvard for a while. Just not an economics professor here.

I am concerned about the devaluation of the dollar. Not a good time to travel to Europe, or Canada for that matter.

Everyone is coming to the states since the exchange rate is in their favor.

 

[Microphone Fiend]

If you want to get rich, which will allow you to truly become hedonistic, you have to save money.

Oh. So I just have to sacrifice my freedom to get it? Sounds kinda counterproductive to me :crazy:

 

[Bonhomme]

Hedonism doesn't necessarily have to be all that expensive.

 

[Francisco d'Anconia]

Hedonism doesn't necessarily have to be all that expensive.

Nope, not at all.

 

[Bonhomme]

In that light, I might add, +2 for hedonism.

 

[Obsidian]

That's earning money. A lot of people mistake the two. Those are also typically the people who spend their lives just saving money because they are afraid of not having any. People who know how to make money don't have that fear.

Living paycheck to paycheck enslaves you to your job. Pook advocates owning a business to make money, but saving (and investing) is essentially the same thing. Stockowners are part owners, and they can still make money through non-entrepreneurial means at the same time. If you live on 75% of your take-home pay and invest the rest, you'll be a wealthy man in 10-20 years. And you'll also be better disciplined.

Once you get enough funds, you can even self-insure yourself instead of buying many minor kinds of insurance (eg, car insurance), and thereby cut down on profits that would otherwise go toward the insurance industry. You would only need to hang onto the more extreme kinds of insurance, like life insurance (until you save enough money that your wife won't need any insurance) or health insurance (you can save money by lowering your premiums and raising your deductibles).

It's people who think the way you do ("don't save") that are requiring our government to bail them out in their old age. "Nah, don't save for retirement. Nah, don't save for an emergency or a rainy day. Your job will always be there for you until the end of time. Or if worse comes to worse, the government will help you." Give me a break.

Hint hint: Social security is a pyramid scheme.

Savings are what allow a country (or an individual) to become wealthier over time. Look at the Solow Growth model if you don't believe me. And America has no savings.