Economics

[Adam Howard]

I've been having a very long topic on the subject on another site. And the topic was basically the OP was saying how some people are good with money and others are not. It also continued on how the economy has changed.

I thought it would be interesting to see people's thought on it.

Just how well do you think you're good with money?

For example, I pay about $100 for phone service, for the whole year. That includes home phone and cell phone. That's not my monthly bill, but rather the whole bill for 2011, 2012, and I would suspect if nothing changes 2013 as well.

My cable bill with Internet and TV is $420, for the whole year (not monthly).

So total all my digital communication Cell phone, home phone, TV, Internet is only $520 for the whole year. I pay more in a months rent than I do on those utilities for a whole year.

I've got it worked out so that I basically pay my bills in January and thats it... I'm done for the year. Everything else is extra. And I'm not claiming to be a wealthy man, just someone who has figured out how to balance my books.

So just how well do you think you're good with money?
And why do you think some people are better with it than others?
If you believe yourself good with balancing your books, how do you think you learned that skill?

 

[LPH]

I am not good with money. This is intentional. Focusing on money takes time away from my other interests, therefore, money is usually my last thought. In fact, when I must think about money then I find it irritating. Money is for the benefit of barter and trade. It is not for consumption.

 

[Anthony Parsons]

Me... I'm average, at times, negligent would be a good word. My wife on the other hand, hence why she manages all money, is pretty much a guru. It's also her field of expertise... and manages a lot of clients, so she should be good. She hasn't paid interest on a credit card in 20 years... uses the banks money for 54 days interest free, then pays the day prior, saving thousands annually. She is truly a whizz with money... the stuff just appears in her presence, which is why I have no objections with her managing my money.

 

[Ditto]

I have a spreadsheet created on the PC, that auto adds and subtracts. That's how I do my bills for the year and works great. Just change the cash figure in one column entered, lets say I got paid more or less this week. And the change is reflected over weeks/months in all other columns below automatically for the whole year. Used that method for many years, no need to do any manual sums - does it all for you.

 

[Jake Bunce]

I am not conservative with my finances, I just don't have many wants in life. Once my needs are met then the rest goes into savings. I have a strong sense of priorities. I live modestly and my lifestyle does not scale with my income.

 

[Adam Howard]

I am not conservative with my finances, I just don't have many wants in life. Once my needs are met then the rest goes into savings. I have a strong sense of priorities. I live modestly and my lifestyle does not scale with my income.

About the same here... I never go about wanting much, because I make it a point to only go after my basic needs. As such my lifestyle does not scale with my income.

I grew up dirt poor.... By that I mean I grew up on a 3rd world budget. It wasn't exactly an easy childhood, but looking back now.... It made me understand what is and is not important. So even though life had definitely improved, I still make it a point to "not require much" and budget as though I was down to my last dollar (if you understand my meaning).

 

[Slavik]

Grew up in a business family, both parents running their own companies, so money wise, very good. I could tell you exactly how much is in each of my bank / savings / business /paypal / cash accounts without having to look, I effectively keep a running "tab" of my cashflow in my head, who owes me, who I owe, what i've spent, regular outgoings etc...

Also growing up in a business family, I was always taught money is earned (and if I wanted to buy something, I had to earn the money by washing cars, doing the washing up, whatever household chores I could so for whatever price I could negotiate), so once i've earned money, I don't often let it go easily.

But much like Jake, my overall lifestyle does not change based on income, I pay the bills, have 1 or 2 nights out a month, and the rest just gets saved away for if I want to treat myself or a friend/family member to something nice.

 

[jonsidneyb]

Economics is actually not about money. I think you mean Finance. Economics is closer to the study of scarcity.

 

[Adam Howard]

Economics is actually not about money. I think you mean Finance. Economics is closer to the study of scarcity.

I often see them as one in the same

 

[Digital Jedi]

I am not good with money. This is intentional. Focusing on money takes time away from my other interests, therefore, money is usually my last thought. In fact, when I must think about money then I find it irritating. Money is for the benefit of barter and trade. It is not for consumption.

Of course, if you don't keep track of it, you'll find you have nothing to barter and trade, and therefore, nothing to consume.

 

[dutchbb]

Not as good as I'd like to be, but it's partly a learning process. The mentality of saving and investing your money in the most efficient ways is often related to a genetic predisposition but also culture and education. The most obvious problem that I can see is that at early age, people don't get the education they need. Money (and economics) should be important subjects in the education of kids and teens. Unfortunately there isn't enough (if any) focus on this. Someone said that economics is not about money, that is true however the wrong knowledge about money certainly has a major impact on economies. Being bad with money intentionally may spare people some stress at this time, but it may cause severe stress (or worse) in the future. Not just for individuals, but for whole societies. Just think about the expansion of credit in Western countries and the punishment of saving by governments and central banks. The side effects of this behavior have already been disastrous in past decades, but I believe the worst of that is yet to come. So it's essential that people understand money and apply the right principles.

 

[jonsidneyb]

I often see them as one in the same

Finance is Net Present Value, Term Intermediation and so on.

Economics is Supply and Demand.

Finance is always in the School of Business at universities. Economics is not always the case.