Every little bit adds up

in thoughts •  last year 

I was just reading a post by my brother about saving money on haircuts by being married to a hairdresser, 7500 dollars over 32 years. Significant. For me, I have been cutting my own hair for about 15 years now because firstly, I wasn't happy with the job they were doing and secondly, I can better cope with my own mistakes ;D

Oh, I forgot to charge my laptop and I am running on fumes so, let's see if I finish this post.

@galenkp also listed some other items and amounts over the 32 years:

I made some more calculations below based on 32 years in approximate Australian dollars:

  • 1 small coffee ($4) 5 times a week = $33,280
  • 1 Big Mac meal ($10.05) a week = $17,472
  • 1 packet of cigarette's ($30-$35) a week = $49,920-$58,240
  • 1 chocolate bar ($2) a week = $3,328
  • 1 pair brand name runners ($280) a year = $8,960
  • 1 bottle wine ($25-$35) a week = $41,600-$58,240
  • 1 vehicle speeding fine ($400) a year = $12,800
  • 1 takeout pizza ($24) a week = $39,936

Significant.

Ok, so while people (I am generalizing) might say that these items add to life experience, imagine if rather than a pizza a week, it was 3 pizzas a month, or a pair of shoes every 15 months instead of 12. What would it look like if instead of the all the extras, those extras were consumed at 75% and the other 25% was invested diligently each month.

As you have likely heard, there are people who have been putting coffee money into bitcoin monthly, 10 dollars a week - for years. You think they are happy with their return or, do you think they are saying "I wish I had the coffee instead". I would posit a guess...

I have been on Steem about 2.5 years and that means if I had put 10 dollars a week into investing, it would have amounted to 125 weeks = 1250 dollars. Very manageable. While some weeks (very few) I would have bought 1.25 Steem at 8 dollars each, other weeks I would have bought 142 steem at 7 cents. I have no idea how much it would be all up but, I can guarantee that for that 1250 dollars, I would have a fair bit of Steem and, that Steem would have been attracting more Steem to it and even conservatively, it would have increased by 25% a year, not factoring in the weekly accumulation process.

But of course, I could have been buying Bitcoin at 900 dollars and and that 10 dollar purchase would be worth 120 today. XRP at 2 cents, Ethereum at 30 dollars... you get the idea. But, over the space of 32 years like Galen was tlaking about, I would have invested 10 dollars weekly to the tune of 16,000 dollars directly and mot likely, broadly. What would it be worth today? Dunno, I am not that smart to do the calculations and due to the battery dying, I can't even give a rough estimate figure, but suffice to say - significantly more.

Too often we feel that we do not have enough to invest into our future, that there is none left over to give us a chance to build a foundation to work from but, I have come to believe that this is a lie to keep the consumers consuming and the investors earning. Rather than the consumers slowly becoming investors and getting earnings on their consumption.

Steem is quite revolutionary in this way because it is an economy where there are options to buy in without buying, to earn the way into a portfolio that can be built upon, forever. Steem Power is yours and once held, it is very difficult not to earn something on it because even just sitting there, it attracts interest.

At some point, people are going to start waking up to the potential of more circular economies of ownership and consumption and then, all of those people who have been diligently putting that coffee money into Steem and similar, are going to be happy indeed. One thing that I have learned over the last 2.5 years is, it is never too late to start investing into ourselves and the communities where we spend our time.

Taraz
[ a Steem original ]

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Wow. I am saving all this money :D because I am not doing a single one of those you listed above. Those alone amounts to 200k savings over 32 years, nice.

:D

That was my brother's list and, he doesn't do some of those things either. He was never a smoker at least.

The "basics" of saving and buying only when we have sufficient savings to do so, has largely been "lost" in my time @tarazkp. At least here in America. Although, what I read about the "general state of affairs" in most of the western world, I don't think we are by any means all alone ...

The result? Debt. Massive debt. Where ever increasing amounts of our country's annual "budget" is being spent simply to cover the interest ... Interest that has lost "sanity," as we now see interventions resulting in negative rates?! Paying someone to borrow money?! A slow, steady descent into insanity ....

Not only are we not addressing this fundamental problem, a case could be made that we are accelerating away from addressing it ...

The outcome? I do not profess to be wise enough to know, but it is inconceivable to me that it will be even remotely close to positive. I tend to personally believe it will be much closer to the "disastrous" side of the spectrum of possibilities ...

Paying someone to borrow money?!

And don't forget, penalizing those for saving.

The outcome? I do not profess to be wise enough to know, but it is inconceivable to me that it will be even remotely close to positive. I tend to personally believe it will be much closer to the "disastrous" side of the spectrum of possibilities ...

What I am "hoping" is that the blockchains will work their way through the structure to increasingly take wealth away from the crumbling host and in so doing, add some checks and balances on what is really available to use,rather than just keeping on printing inflation.

Yes @tarazkp ...

"What I am "hoping" is that the blockchains will work their way through the structure to increasingly take wealth away from the crumbling host ..."

... this is true for many.

Will this new asset class remain "free" of its "crumbling host?" That is the big question. At least for this "old war horse" ...

Posted using Partiko Android

I don't think it will be free, but it will house the assets of the host and bring much more of it out into the light.

I read about SP accumulating something just sitting there but I still don't know if and how this works. After a certain threshold perhaps.

Anyway, it's the power to curate, i.e. support people and that on itself is great, so that's why I prefer turning almost everything into SP and I wait for the times when my support is going to matter. Will be awesome :)

I read about SP accumulating something just sitting there but I still don't know if and how this works. After a certain threshold perhaps.

About 16% of the reward pool is paid in interest to Powered up Steem, there is no threshold. If you do nothing, you will see your wallet tick upward.

Anyway, it's the power to curate, i.e. support people and that on itself is great, so that's why I prefer turning almost everything into SP and I wait for the times when my support is going to matter. Will be awesome :)

I remember when mine was making a lot more difference, it felt great. However, the interesting thing is that at a Steem level, I am distributing more now. :)

Those figures are scary once you actually compile a list together. it would be a boring life without a few of those things. I must admit I am the killjoy in the family putting my foot down with the expenses. I would love to never have to think of finances ever again and have enough to do whatever I pleased.

I would love to never have to think of finances ever again and have enough to do whatever I pleased.

Without having to live in the forest as a hermit.

Lol. That wasn't part of the plan.

I do my own hair because the idle chit chat at the barbers is soul destroying :0D

I have never been to a barber, but then, I am only 40.

Haha!! It's what the kids are calling it the days. You can't move for them here!

I think they are making a resurgence.. especially with all the hipster beards needing waxing.

And the moustaches. Musn't forget those elaborative twirly-ma-gogs they are all sporting!

Takes far too much work for a ridiculous outcome.

Perhaps a way to drive this line of thinking even further is to go backward. Imagine if you won the lottery, you could stick that money in a boring fund for each item and just withdrawl enough once a month or so.
I'm seeing term deposits in Australia suck now at around 2.1% for the better ones.
Let's say that's fixed and after taxes, it's 2%.

1 small coffee ($4) 5 times a week = $33,280 (32 years)

You can withdraw $117.10 monthly. math here
After 32 years, total interest earned: $11,687.86.
Under your system you were able to spend 86.67 / month on coffee
$30.43 Extra a month or 35% more.
Or at a fixed rate of 86.67 a month you could last 50.78 years which is 58% longer.
This is why rich people do so damn well. Also, if they are celebrities, they have the added bonus of getting a ton of stuff for free.

Money begets money.

I did a couple economics classes and finance classes at uni... damn I am retarded for not starting to actually understand earlier.

Also, if they are celebrities, they have the added bonus of getting a ton of stuff for free.

I have been on Steem for 2.5 years... "don't they know who I am!!" :D

Lol. Free stuff is awesome.

I wish I started saving more earlier, too. Investing it in a bunch of different things is key
But I'm doing fine. I even have money to invest in ultra high risk crypto currencies and burn it on Steem and random steem based tokens. I guess anything that gets us thinking and engaged in investing.

Posted using Partiko Android

I shudder to go back and do the math of all the crap I wasted opportunity on - Now I look forward.

cumulative interest for the win...

I am putting 150 a month into crypto... and will keep doing so while I can. lets see how much I end up with in 23 years (retirement age)

I have been doing the same (not monthly but when possible) and hope that it becomes something, especially with a global collapse on the horizon.

same here... I am thinking of moving my FIAT into stablecoins and move them on nexo or celsius

As long as you have a better strategy than buying whatevee is being shilled the loudest, that seems like a decent way to save 5 dollars a day!

Posted using Partiko Android

I live in the crypto Valley here in Switzerland and am part of a group that educates people on cryptocurrencies. I try to do my due diligence but even then you are wrong sometimes.

I do not really buy ICO and do not really have enough money to get into STO pre launch so i am sticking to mostly major projects now

Hi, @tarazkp They do not teach us to invest, just to spend. So, we defend our right to spend and we do not see that we could add every penny for a better future

Correct. Forget what has been learned, learn a new way.

Looking at that, I kinda wish I smoked so I could quit and save all that money! Maybe I should start drinking wine so I quit that too. 🤔

Posted using Partiko Android

Starting something expensive and then quitting is the best way to save money I hear. I am going to save a huge amount because I am going to start and then stop collecting classic cars.

You're going to save a fortune! You'll be rich in no time. 😆

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1 packet of cigarette's ($30-$35) a week = $49,920-$58,240

C'mon!! $30-$35 for a packet of cigarettes in Australia? ¿Really?

¡holy crap! if along these three years that I've been here in the platform, I had been in Australia substituting my cigarettes consumption by rather investing and putting that tobacco money into Steem... I'd have so much SP now that I could easily kick to @misterdelegation, @freedom, @blocktrades, @michael-b and many others out of the Top 10 biggest whales ranks. Hahahaha

Yeah it is crazy. I used to smoke once upon a time and when I left Australia in 2003 it was $7. Went back in 2006 and it was $16, 2009 and it was $22...

Sheez!! Good thing I'm still in my poor and economically messed up Venezuela. Because one daily packet of cigarettes certainly has become part of my basic diet these days. Since they here are still around $1.50 each. };)

I have no idea what the price in Finland is these days.

You made it! 😆

I only do the chocolate bar thing regularly, medically required with the stuff I get up to 🤣

Seeing as my partner refuses to buy actual steem for me (I do try periodically 😆) I’m going the roundabout way of getting him to buy me Splinterlands cards and one day I’ll start selling them maybe.

Posted using Partiko iOS

I’m going the roundabout way of getting him to buy me Splinterlands cards and one day I’ll start selling them maybe.

I think @mattclarke uses this loophole - "No honey, I am not buying more crypto"

🤣

Well my partner plays Magic (aka cardboard crack) so he can’t really complain about Splinterlands 😜

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:D

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