<p>I have long held the view that it is better to spend and have fun while young rather than scrimping and saving for the “future” and then trying to catchup and do things when we are older and tired. Now I have some academic support for this view. </p>
<p><a href=“http://www.columbia.edu/~rk566/research/Repenting_Hyperopia.pdf[/url]”>http://www.columbia.edu/~rk566/research/Repenting_Hyperopia.pdf</a></p>
<p>I would have read the link if the authors only spoke English :p. But I got lost right around “Consumers choose hedonic luxury rewards… consistent with the notion that hyperopic self-control problems involve time-inconsistent preferences…” yada yada. </p>
<p>Was this for real? </p>
<p>If so, the question is: when are we “young” and when are we “old and tired?”</p>
<p>when are we “old and tired?”</p>
<p>I couldnt figure out why I was so stiff lately in the morning- ( give me a break- I have to have 1 & 1/2 cups of coffee to get the motor to turn over)
Then I was like “Oh , yeah” I ran out of glucosamine!</p>
<p>Young–Going out to party on a weeknight sounds like a good idea.</p>
<p>Old and tired–Rather stay home and watch favorite TV shows, read, and post on CC.</p>
<p>But, barrons, since I now need <em>two</em> of those homes to hang around at on weekday evenings, I’m glad I saved for the future (aka NOW). ;)</p>
<p>Given our abysmal savings rate, we must be very very wise.</p>
<p>I still think you can only be one place at a time. I have some problems with how they calculate the savings rate.</p>
<p>“This leads to an important question: What constitutes true net savings? Is it the actual savings (an income statement) or the change in net worth (a balance-sheet item)? When one thinks about it, both will result in a higher net worth. If you take the sum of private savings and the change in net worth as a percent of GDP as the approximation of the true savings rate, by my account, that rate is on the order of 10 to 15 percent today — within the historical range. That’s quite a different story than the one the deficit mongers are telling.”</p>
<p><a href=“http://www.nationalreview.com/nrof_canto/canto200412100922.asp[/url]”>http://www.nationalreview.com/nrof_canto/canto200412100922.asp</a></p>
<p>John Greenleaf Whittier "For all sad words of tongue and pen, The saddest are these, ‘It might have been’. "</p>
<p>Back when DH and I were Yuppies, I read an article about how our lifestyle of the 80s (waterfront, boat, BMWs, etc) would have us eating dogfood in our old age. </p>
<p>We laughed it off since the next article said social security would be gone, inflation was at such a rate as to never allow us to retire no matter how much we saved and we’d be living on dogfood.</p>
<p>We had alot of fun then and still have a different kind of fun now. No regrets (except for selling the Sammamish waterfront) and I have yet to even think about dogfood… </p>
<p>Partying on weeknights --NO WAY.</p>
<p>I have lived on boxed mac & cheese- I think $1.50 a box?
But my dog gets canned food that is per can $1.99 & she eats two a day</p>
<p>( were you eastlake or westlake?)</p>
<p>More like 5 for $1.00 back in the day. Now about 2 for $1 on special (Kraft only)</p>
<p>Westlake. Just north of Vasa Park. Georgeous sunrises over the Cascades after all night parties!!! Maybe a dozen houses on the eastside over the state park then and now, wow, skinned and over built.</p>
<p>you are probably right- nasty stuff- at least it was very rarely that we had to eat it-but I was only 18- 18 yr olds eat all kinds of things
( & I have had worse- like cafeteria food at the hospital)</p>
<p>but what is it about little kids- that they * prefer* orange mac and cheese to my homemade recipe?</p>
<p>Actually I still like it. Throw in a little grated real cheese and allow to cool to just over lukewarm–YUM. I can eat the entire pot of it. Now ramen I can live without.</p>
<p>LOL there should be a rule in terms & conditions, these posts are making me crave some Kraft mac and cheese, plus hot dogs to go with it, and I’ve already committed to eating salad for dinner. This is soooooooooo wrong!</p>
<p>Off the mac & cheese topic - I guess it’s only true until your kids start whining all over these pages that they can’t attend their “dream school” because mom & dad didn’t save enough to pay for it!</p>
<p>ok sorry
I think you can do both.
Most people I know have a happy balance
They didnt get married and start a family till they were in their 30s leaving them lots of time to finish school and travel.
They make enough to support their kids and plan for college- and while some of them might be a little older than they would like, by the time the kids leave the house, I think 50 year olds now, are as physically as active 30 year olds used to be.
I just was reading an article about rowing races in my area, and several of the folks are in their 80s.
I also think that planning for things and anticipating them is half the fun-</p>
<p>just tried to read the article- is it in English?</p>
<p>I have ramen on weekdays for breakfast. Prefer the Picante/Cajun flavors to perk me up with 3 cups of coffee. At 6-8 ramen per dollar, I figure its cheaper than cereal, or two eggs, or 1 donut, all of which I should eat. Bran gets too monotonus and causes bloat amongst other things. </p>
<p>As for the national savings, I am more concerned what the Saudi’s are doing with all the new money they will get when BP shuts done the pipeline. Now that’s a savings rate!</p>
<p>Article is a variation of English called <em>CU-bonics</em></p>
<p>Coming from the NW, it was Mission mac & cheese with hot dogs. And I am missing “Beanie-weenies” now, too. My sister-in-law and I have a running joke about Texas Hash…</p>
<p>The credit culture today affects the savings rate. In the not too distant past, people saved for what they wanted/needed. Now with a swipe of a card, you get what you want/need and pay for it later. Add on the usurious rates charged by the credit vultures and consumers are paying a huge price. Just think what the savings rate would be if we all banked the interest charged on credit debt.</p>
<p>The change in net worth of an individual would include the change in the market price of held assests, particularly houses. It’s an unrealized gain. You don’t really have the money in hand unless you sell. You can borrow against the higher value but that’s not the same thing as realizing a gain. No way should the run-up in housing prices be counted in as “savings”, nor should the bubble bursting count against it.</p>
<p>Also, upon retirement, a dollar saved at 25 will probably be worth double the dollar saved at 35. Having fun is actually important, but so is saving. Balance is the goal.</p>
<p>Well said, Dadguy. My grandparents probably overdid the saving, and didn’t enjoy the results of their hard work as much as they should have. But I’m very grateful to have inherited many of their habits as well as a bit of the money they saved – first and foremost an allergy to credit. My generation’s tendency to borrow and reluctance to save is going to get us in a lot of hot water.</p>