Comments on: Life’s Little Money Mysteries http://toughmoneylove.com/2009/01/21/money-mysteries/ The Hard Truth about Money and Personal Finance Fri, 19 Mar 2010 02:03:20 +0000 http://wordpress.org/?v=2.9 hourly 1 By: kitty http://toughmoneylove.com/2009/01/21/money-mysteries/comment-page-1/#comment-2220 kitty Thu, 22 Jan 2009 19:28:50 +0000 http://toughmoneylove.com/?p=1261#comment-2220 ToughMoneyLove: I don't disagree about the average car; you also make good points about immediate drop in value issue. But just because something is true on the average, doesn't mean it is true in all cases. This is my main problem with "only used cars" statement. I chose Corollas and Civics because these are my cars of choice and because of personal experience. Besides - in math when you want to prove something doesn't hold for all cases, you only need to show one counter-example. As to fuel efficiency issue, out of curiosity I looked up today's prices for a new 2009 Honda Civic Ex and a used 2006 Honda Civic Ex. MSRP for 2009 Honda Civic EX is around 19K. EX includes all of the options, by the way. The asking price for 2006 used Civic is in range 15-17K depending on conditions. So you have 19K MSRP for a new 2009 Civic vs 17K asking price for a good quality low mileage 2006 Civic. You can bargain both of these down as it is asking price; you have to add taxes to both. IMHO, 2K is a reasonable premium if you get a new 2009 car vs a used 2006 car. BTW - I am not disagreeing about having a stickers with the car value after you drive off. This will clearly show how well or badly a car holds its value and is very useful for comparison purposes. I do agree with your other points. ToughMoneyLove: I don’t disagree about the average car; you also make good points about immediate drop in value issue. But just because something is true on the average, doesn’t mean it is true in all cases. This is my main problem with “only used cars” statement. I chose Corollas and Civics because these are my cars of choice and because of personal experience. Besides – in math when you want to prove something doesn’t hold for all cases, you only need to show one counter-example. As to fuel efficiency issue, out of curiosity I looked up today’s prices for a new 2009 Honda Civic Ex and a used 2006 Honda Civic Ex. MSRP for 2009 Honda Civic EX is around 19K. EX includes all of the options, by the way. The asking price for 2006 used Civic is in range 15-17K depending on conditions. So you have 19K MSRP for a new 2009 Civic vs 17K asking price for a good quality low mileage 2006 Civic. You can bargain both of these down as it is asking price; you have to add taxes to both. IMHO, 2K is a reasonable premium if you get a new 2009 car vs a used 2006 car.

BTW – I am not disagreeing about having a stickers with the car value after you drive off. This will clearly show how well or badly a car holds its value and is very useful for comparison purposes.

I do agree with your other points.

]]> By: Beef Up Your Piggy http://toughmoneylove.com/2009/01/21/money-mysteries/comment-page-1/#comment-2216 Beef Up Your Piggy Thu, 22 Jan 2009 13:39:58 +0000 http://toughmoneylove.com/?p=1261#comment-2216 I love this post. Had me laughing from #1 on. I couldn't agree more and love the thought on the "piggy" bank. I love this post. Had me laughing from #1 on. I couldn’t agree more and love the thought on the “piggy” bank.

]]> By: TFB http://toughmoneylove.com/2009/01/21/money-mysteries/comment-page-1/#comment-2215 TFB Thu, 22 Jan 2009 08:49:24 +0000 http://toughmoneylove.com/?p=1261#comment-2215 1) Rich vs Smart: Because you weren't as lucky or because making money is not your only goal in life. 2) Starbucks: Because the products they sell isn't that expensive in absolute dollars. People are still willing to spend a few dollars for some pleasure. 3) There is more to economics than macroeconomic predictions. 8) Try buy a 3-month old Honda and see if you can get it for 20% less. I doubt it. 9) Government IOUs are called bonds. I have some. They are worth money. You probably have some too. 1) Rich vs Smart: Because you weren’t as lucky or because making money is not your only goal in life.
2) Starbucks: Because the products they sell isn’t that expensive in absolute dollars. People are still willing to spend a few dollars for some pleasure.
3) There is more to economics than macroeconomic predictions.
8) Try buy a 3-month old Honda and see if you can get it for 20% less. I doubt it.
9) Government IOUs are called bonds. I have some. They are worth money. You probably have some too.

]]> By: MasterPo http://toughmoneylove.com/2009/01/21/money-mysteries/comment-page-1/#comment-2214 MasterPo Thu, 22 Jan 2009 05:09:55 +0000 http://toughmoneylove.com/?p=1261#comment-2214 For #1 - When it comes to making money (especially with investments) I definately think you can smart yourself out of good profits! I feel I made a lot better investment decisions when I was younger and didn't know as much as I do today. ;-) For #2 - 100% agreed. For #4 - I've seen the TV commercials too for water filters instead of bottles. But what happened to the "boom" of plastics recycling? My town *forces* me to recycle my plastics - that is, put them out for recycling every 2 weeks. So why isn't it actually being recycled instead of just dumped? Could it be the hoop-la over recycling was just that? Could it be there is no green in being green? Nah, couldn't be any of that... For #9 - Also 100% And, out of sequence, for #7 - You've stumbled on to an important issue. I Obama gets his way (and if not him, someone after him most likely) then millions of Americans will forever be removed from the tax-payers column. As it is the top 25% of earners pay 80%+ of the income tax burden. The point is, when we reach the point where the majority of Americans (over 50%) do NOT pay ANY income taxes then the majority of Americans won't care about tax hikes or cuts! In fact, they will probably oppose tax cust because then THEY may have to start paying taxes and/or wills top receiving "refunds" out of thin air! Who is going to lobby for the rights of "the rich" when it comes to taxes? It's a VERY dangerous road!! For #1 – When it comes to making money (especially with investments) I definately think you can smart yourself out of good profits! I feel I made a lot better investment decisions when I was younger and didn’t know as much as I do today. ;-)

For #2 – 100% agreed.

For #4 – I’ve seen the TV commercials too for water filters instead of bottles.

But what happened to the “boom” of plastics recycling? My town *forces* me to recycle my plastics – that is, put them out for recycling every 2 weeks. So why isn’t it actually being recycled instead of just dumped? Could it be the hoop-la over recycling was just that? Could it be there is no green in being green? Nah, couldn’t be any of that…

For #9 – Also 100%

And, out of sequence, for #7 – You’ve stumbled on to an important issue. I Obama gets his way (and if not him, someone after him most likely) then millions of Americans will forever be removed from the tax-payers column. As it is the top 25% of earners pay 80%+ of the income tax burden.

The point is, when we reach the point where the majority of Americans (over 50%) do NOT pay ANY income taxes then the majority of Americans won’t care about tax hikes or cuts! In fact, they will probably oppose tax cust because then THEY may have to start paying taxes and/or wills top receiving “refunds” out of thin air!

Who is going to lobby for the rights of “the rich” when it comes to taxes?

It’s a VERY dangerous road!!

]]> By: Andrea http://toughmoneylove.com/2009/01/21/money-mysteries/comment-page-1/#comment-2209 Andrea Thu, 22 Jan 2009 01:09:55 +0000 http://toughmoneylove.com/?p=1261#comment-2209 Why should people pay income taxes if they have legal deductions or credits? It's absurd. People who say they don't pay taxes are not counting property taxes (even if they rent - somebody's paying for them, it flows through) and sales taxes. Nobody gets out alive ... Why should people pay income taxes if they have legal deductions or credits? It’s absurd.

People who say they don’t pay taxes are not counting property taxes (even if they rent – somebody’s paying for them, it flows through) and sales taxes. Nobody gets out alive …

]]> By: GettingUp http://toughmoneylove.com/2009/01/21/money-mysteries/comment-page-1/#comment-2208 GettingUp Wed, 21 Jan 2009 23:52:33 +0000 http://toughmoneylove.com/?p=1261#comment-2208 As for the tax pretenders, you underestimate the people who brag about their refund, and don't say anything about not paying any taxes. Most of them just don't know that they are actually not paying any taxes! As for the tax pretenders, you underestimate the people who brag about their refund, and don’t say anything about not paying any taxes. Most of them just don’t know that they are actually not paying any taxes!

]]> By: Andrea http://toughmoneylove.com/2009/01/21/money-mysteries/comment-page-1/#comment-2206 Andrea Wed, 21 Jan 2009 19:22:57 +0000 http://toughmoneylove.com/?p=1261#comment-2206 I majored in Economics and loved it. I also majored in Finance and hated it. Economics is a social science, ultimately, and in that sense, is not the same as, say, Chemistry as a "science." I actually get physically irritated when I see people waiting in the drive-thru at Starbucks (which is even worse than a walk-in place - can't even be bothered to get out of your car to spend $5 on barely-coffee?) or putting a case of shrink wrapped, boxed bottled water in a shopping cart. It really makes my blood pressure hitch for a moment. I majored in Economics and loved it. I also majored in Finance and hated it. Economics is a social science, ultimately, and in that sense, is not the same as, say, Chemistry as a “science.”

I actually get physically irritated when I see people waiting in the drive-thru at Starbucks (which is even worse than a walk-in place – can’t even be bothered to get out of your car to spend $5 on barely-coffee?) or putting a case of shrink wrapped, boxed bottled water in a shopping cart. It really makes my blood pressure hitch for a moment.

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