~Seinfeld

[...] Madison from My Dollar Plan presents The Exponential Power of Delayed Consumption. [...]

[...] My Dollar Plan: The Exponential Power of Delayed Consumption [...]

[...] from My Dollar Plan presents The Exponential Power of Delayed Consumption. Laurence [...]

If that was the case, then I would not be alive and typing.

I practice the rules of driving cars into the ground.

I practice the rules and have $250K in the bank, and another $250K in investments and another $250K in 401(k)…..The point is that if you do this with cars, house, things that you use, and repair as much as possible (instead of replace), you then come close to what Japanese, Chinese, Indian, Koreans and other Asians do for a living. I have learned a lot from watching.

My 1992 Mazda and 1996 Ford works like a charm and I have a Spanish garage guy that repairs it for me. He loves me since I pay cash.

Buying a home, not having any debt, use credit cards with points and pay off when I receive the bill, get new cards every 90 days to get more free points, maximize on freebies and never give up on one goal> SAVING is working well for me and my family.

This allows us to make trips to UK (just returned) and next trip will be to Australia.

Please follow ALL of these rules. I have learned them from the school of hard-knocks and here you have listed them ALL. What a smart guy, and now you have the smart moves to make (reader). Do it and you WILL WIN.

Thanks for listening.

KKP

[...] presents The Exponential Power of Delayed Consumption posted at My Dollar [...]

[...] My Dollar Plan: The Exponential Power of Delayed Consumption [...]

[...] The Exponential Power of Delayed Consumption [...]

Our consumer culture has bought into the “Buy now, pay maybe” idea. They believe the “You deserve it” slogans, and treat themselves accordingly. People think they deserve an increased level of comfort just because they’ve lived for a certain amount of time, regardless if they can afford it.

[...] My Dollar Plan: The Exponential Power of Delayed Consumption [...]

I agree with Tyler’s comment. Benefits of delaying home ownership from 05 – 09 would have been luck. You cannot predict housing prices accurately let alone interest rates. People who got in over their heads in the mid to late 90′s were handsomely rewarded.

If you can save 10K off a new car but otherwise would have waited a year or 2, it’s a smart move to buy that car now. Not to mention whatever you are driving today will be worth less further down the road.

I understand the sprinkler example, but what’s lost in the post is that a sprinkler system is relatively cheap when you consider the payoff of making your life easier and making your property more attractive when you want to sell.

Spending 1 & a half hours mowing your lawn is smart if you otherwise can’t afford it as is putting off refinishing a basement until you need the space (then again like a sprinkler you’ll get some of that money you put into it back, so you might as well get some enjoyment out of it).

Todd, as a Math teacher I can’t believe you resisted putting a mathematical example to the power of delay!

[...] The Exponential Power of Delayed Consumption [...]

Leasing is designed the same way our lives are designed: Temporary. While we’re here, we might as well get the most out of every minute of it, because we can’t take our cash with us when we die.

Just what are you going to save all that money up for?