I do understand that yes. You can't save it all as you would starve to death amongst other things. In other words discretionary and disposable income to use the technical terms.
True. But if enough kids are what you would class as financially sensible, there will be a knock on effect to the economy as far as I can see. Would you not agree?
Nope and I have explained why with a few scenarios, I believe.
If a person is financially savvy, they will realise that it is cheaper not to have the car or bike in the first place, but to use public transport.
Yes but you originally asked what I thought was a rhetorical question about spending vs saving (there no vs!) and repeatedly required the answer, so I answered it.
Of course it might be preferable but that's not what you asked now, is it.
However, I have asked friends if they really needed the new curtains, new carpet when there was nothing wrong with the old and tinted windows piled up on the mortgage. Sadly they've taken three steps backwards.
By all means, is it necessary is a bloody good question, there's no substitute for common sense.
No car/bike sales... and if the goal is to get into the housing market, why would you need either, especially in the big city?
Because if you're a first home buyer and thinking, aim lower to increase equity, you'll quite likely need transport to commute.
You just saved at least 200k plus interest, shaved 10 years off your loan and gained the ability to choose your mode of transport/toy, you're welcome.
I had a house before I owned a car. Perhaps you're saving for that couch, or that TV, or whatever it is you;re going to save for that you ordinarily would have spent on other things.
No, because you already have a savings plan in place, prior to the goal.
The point is, it's a lifestyle thing and because you're taught how as a child, thus heading into the adult world you have lots!
The nudge is the kid has had a decade of fiscal responsibility and understanding if you don't earn, you don't gain.
You don't spend what you don't have, also respect and a sense of pride in what they've worked hard for.
This has knock on effect in their character, pride and wider values.
I doubt if respect is the same for what you or anyone else owns, if it's not earned.
Which brings me to consumerism. Won't the fact that we can have an endless supply of what we want have an even worse effect on consumerism and resources? This is important.
Saving/Not spending will have an economic affect that is greater than the individual.
Billions of individuals in personal debt created an economic effect greater than the individual. So, Incorrect.
Again, You are saving a portion, while spending, lol.
Again, since your focussed on saving - not everyone is saving at the same rate, nor spending savings at the same rate, so it's all relative.
And in response to that will industry lower their prices to make up the shortfall? If not, then in 5 years time, you could be paying 2.5k over and above (true you could be paying less) the value. I understand the tradeoffs, and I would venture that many do when it comes down to it. The economy is built on debt and it needs more debt to grow.
Hmm, nope I disagree. See the domino effect of the housing collapse in the US, prior to the GFC.
Also, why, if people are happy with paying 5k of interest over 5 years (which they are), would a person wait when the can realise the dream of having a car in the first place. This happens with a greater success rate than not. Yes you pay more, but your realise the benefits earlier and pay the loan interest that you are happy with paying. An economic trade off.
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