Posted by Usenet2007@THE-DOMAIN-IN.SIG on April 16, 2007, 1:20 am
I am of modest means, economically. But that includes a life
history that has taught me the value of working hard, and being
frugal.
So, an important threat model is economic hard times. Not just
for me individually (what if I fall down the steps and break my
leg?) But also recession, depression, inflation, or - my
favourite: craptastic currency exchange rates, related to my
business. Actually, that last one has been bitch-slapping me for
a few years now, and has recently reached an eye-bugging level.
OTOH, barring a heavy disaster, it cannot get much worse.
A plan...
(The really bad point here is lacking ownership in land or a
house. It's a bummer, but let's deal with it.)
One year food stash. I am at maybe three months level right now.
I guess I should bite the bullet, and just get a bunch of rice
and beans (ick.)
The vegetable garden isn't figured in. But, rather, is a bonus,
due to unpredictable weather and the seasonal surge/lull.
One year toilet paper, soap, etc. I think I am at maybe two
months supply right now.
Debt should be zero. Mine is only in the hundreds. Should be
paid off soon with this month's business receipts. I'll try to
keep the Visa card paid in full. And then only buy tools, etc.
I round up my phone and electric bills, to the higher ten
dollars. I think I should set a weekly auto-pay such that an
average bill will be already paid by the time it is generated.
Or do more, to put me one month ahead.
Unfortunately, I am in a position of only being covered for two
months (with serious stress) of rent and utilities, if my income
suddenly stopped altogether. Although my business is set up such
that only a heavy-duty disaster would cause that.
Just a little goes into savings each week. And sometimes it is
hard to keep it there. Eventually, I would like six months
rent/utilities there.
I have a small renter's insurance policy, through my bank. To
hopefully recover somewhat if the neighbours burn down the
building.
Some business overhead is paid monthly (with a one-month arrears
limit.) Some is paid way ahead - e.g. working to pay all domains
with a nine-year top-up. Eventually, I want to build up all
business overhead to minimum one-year increments (volume
discount, too.)
The main physical things I can picture myself buying in the near
future, are some garden expansion ($-payback), and tools, and
business assets. I don't even have, or want, a TeeVee.
Long-term stuff is two-fold. Stashing whatever I can into a
regular bank savings account. Eventually to upgrade a bit to
time deposits (CDs.) Plus I have been buying a few ounces of
junk silver per month, and a little numismatic silver.
Maybe in a couple of years (if nothing bad happens) I will be
able to sleep OK at night.
So... Comments, anyone?
--
Get Credit Where Credit Is Due
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Credit Tools, Reference, and Forum
Posted by Rod Speed on April 16, 2007, 3:04 am
Usenet2007@THE-DOMAIN-IN.SIG wrote
> I am of modest means, economically. But that includes
> a life history that has taught me the value of working hard,
It makes a lot more sense to work smart instead.
> and being frugal.
> So, an important threat model is economic hard times.
If you have organised things properly, that isnt going to affect you.
> Not just for me individually (what if I fall down the steps and break my leg?)
Hardly the end of civilisation as we know it, particularly in a modern
first world country that has its medical system organised properly.
> But also recession, depression,
We've worked out how to avoid depression now in the first world,
so there isnt any need to plan for that possibility anymore.
> inflation, or - my favourite: craptastic currency exchange rates, related
> to my business. Actually, that last one has been bitch-slapping me for
> a few years now, and has recently reached an eye-bugging level.
Thats what you get for being in a country stupid enough to
piss trillions against the wall in Iraq to no useful purpose.
Looks like that wont continue for too much longer tho.
> OTOH, barring a heavy disaster, it cannot get much worse.
> A plan...
> (The really bad point here is lacking ownership in
> land or a house. It's a bummer, but let's deal with it.)
You should deal with it by fixing that problem
now that you have recognised that its a problem.
> One year food stash.
There is absolutely no point in that. We didnt need that even during
the great depression and we aint gunna see another one of those.
> I am at maybe three months level right now.
Thats plenty for something like Katrina and pointless
if you dont 'live' where that is even possible.
> I guess I should bite the bullet, and just get a bunch of rice and beans (ick.)
Pointless.
> The vegetable garden isn't figured in. But, rather, is a bonus,
> due to unpredictable weather and the seasonal surge/lull.
> One year toilet paper, soap, etc.
Completely mad. There is absolutely no point in that.
> I think I am at maybe two months supply right now.
Thats plenty for something like Katrina and pointless
if you dont 'live' where that is even possible.
> Debt should be zero.
Not necessarily, particularly if you get a clue and get a house and land.
> Mine is only in the hundreds. Should be paid off soon
> with this month's business receipts. I'll try to keep the
> Visa card paid in full. And then only buy tools, etc.
What matters is whether buying what you buy on credit
increases your income sooner than otherwise etc.
> I round up my phone and electric bills, to the higher ten
> dollars. I think I should set a weekly auto-pay such that
> an average bill will be already paid by the time it is
> generated. Or do more, to put me one month ahead.
Wont make much difference.
> Unfortunately, I am in a position of only being covered for two
> months (with serious stress) of rent and utilities, if my income
> suddenly stopped altogether. Although my business is set up
> such that only a heavy-duty disaster would cause that.
> Just a little goes into savings each week. And sometimes it is hard to
> keep it there. Eventually, I would like six months rent/utilities there.
Hard to say whether there is any point in that since you dont
say anything useful about your personal medical circumstances.
If the risk of a major medical problem is low, it makes more
sense to cover what is unlikely with debt, just ensure that
you have the credit available in case its actually needed.
> I have a small renter's insurance policy, through my bank. To hopefully
> recover somewhat if the neighbours burn down the building.
You can make a case for not bothering with that if the risk of that happening is
low.
> Some business overhead is paid monthly (with a one-month arrears limit.)
> Some is paid way ahead - e.g. working to pay all domains with a nine-year
top-up.
Pointless, those are likely to get cheaper in future.
> Eventually, I want to build up all business overhead to
> minimum one-year increments (volume discount, too.)
> The main physical things I can picture myself buying in the near
> future, are some garden expansion ($-payback), and tools, and
> business assets. I don't even have, or want, a TeeVee.
> Long-term stuff is two-fold. Stashing whatever
> I can into a regular bank savings account.
Where they get a derisory interest rate. At least use an operation like ING or
Imigrant.
> Eventually to upgrade a bit to time deposits (CDs.)
Thats a very conservative/low return form of investment.
> Plus I have been buying a few ounces of junk
> silver per month, and a little numismatic silver.
Pointless trying to gamble on just one metal unless you know what you are doing.
> Maybe in a couple of years (if nothing bad happens)
> I will be able to sleep OK at night.
Unlikely with such minor stuff.
> So... Comments, anyone?
Posted by Robert Sturgeon on April 16, 2007, 10:41 am
On Mon, 16 Apr 2007 17:04:01 +1000, "Rod Speed"
(snips)
>We've worked out how to avoid depression now in the first world,
>so there isnt any need to plan for that possibility anymore.
No, we haven't. W've worked out how to postpone them. But
the situation is similar to what would happen if "they"
figured out how to postpone earthquakes in California. The
eventual earthquake would be MUCH worse. The longer we
avoid minor depressions, the more distortions in the economy
we have to correct when we finally do have a depression.
The function of a depression is to liquidate bad investments
and various other economic foolishness, like excessive costs
and mis-allocation of resources. The longer we go between
these necessary "house cleanings," the worse they become.
The best we can do is to stop trying to avoid depressions
and have one every few years. Of course, it would SEEM like
having minor depressions often is worse than avoiding them
completely -- until we can't avoid "the big one" any longer,
and THEN we'll wish we hadn't done it -- kinda like finally
going to the dentist after putting it off for years and
years.
(rest snipped)
--
Robert Sturgeon
Alcohol, Tobacco & Firearms should be a convenience store, not a government
agency.
http://www.vistech.net/users/rsturge/
Posted by Rod Speed on April 16, 2007, 3:19 pm
>> We've worked out how to avoid depression now in the first world,
>> so there isnt any need to plan for that possibility anymore.
> No, we haven't.
Yes we have.
> W've worked out how to postpone them.
Wrong. There were lots in the century before 1929 and none since in the first
world.
> But the situation is similar to what would happen if "they"
> figured out how to postpone earthquakes in California.
Nope, nothing like. Earthquakes are a physical phenomenon, depressions are man
made.
> The eventual earthquake would be MUCH worse.
Pig ignorant fantasy. You dont get that effect even with earthquakes.
> The longer we avoid minor depressions, the more distortions in the
> economy we have to correct when we finally do have a depression.
Pig ignorant fantasy. We've worked out how to avoid the worst of
the compounding effect that produces full depressions so we dont
get them anymore, AND we have worked out how to avoid the
worst of the societal effects like starvation of kids etc too now.
> The function of a depression is to liquidate bad investments
> and various other economic foolishness, like excessive costs
> and mis-allocation of resources. The longer we go between
> these necessary "house cleanings," the worse they become.
More mindless pig ignorant silly stuff. Thats what recessions are.
> The best we can do is to stop trying to avoid depressions
> and have one every few years. Of course, it would SEEM like
> having minor depressions often is worse than avoiding them
> completely -- until we can't avoid "the big one" any longer,
> and THEN we'll wish we hadn't done it -- kinda like finally
> going to the dentist after putting it off for years and years.
Completely off with the fairys, as always.
Posted by The Henchman on April 16, 2007, 5:15 pm
>>> We've worked out how to avoid depression now in the first world,
>>> so there isnt any need to plan for that possibility anymore.
>> No, we haven't.
> Yes we have.
Care to share any citations or published thesis or books that would back
your assertion of this stance?
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> a life history that has taught me the value of working hard,