3 ms·

The lack of understanding of basic finance and statistics is crippling for many people. I know fairly smart people who understand calculus but just cannot acce

The lack of understanding of basic finance and statistics is crippling for many people. I know fairly smart people who understand calculus but just cannot accept that there is a problem with paying interest on all of their purchases. They simply do not understand that eliminating high interest debt as soon as possible (or never acquiring it in the first place) is essential to ever having financial security. Honestly it sometimes feels like the normalizing of financial illiteracy is intentional, although I'm willing to accept that the lenders of high interest debt are just taking advantage of the situation they've found.

fn-mote 5y ago
> I know fairly smart people who understand calculus but just cannot accept that there is a problem with paying interest on all of their purchases. I do not think this is a problem with education. It sounds like they understand, they just do not care. I think that is a different (harder) problem. You're unhappy that people do not believe it is beneficial to be debt-free. As you note - there are many groups who benefit (profit) from this kind of spend-spend-spend consumption culture. Frankly, I am astounded that COVID did not bring about a massive economic collapse that would have driven the point about financial security home in a dreadful way. I'm grateful it didn't, though.
tekknik 5y ago
Well there’s a difference between high interest debt and just debt. And agreed don’t get into high interest debt to begin with and pay it off ASAP if you do anyway. But avoiding interest all together is a massive oversimplification and shows you don’t understand that cash in hand (and the ability to earn more from it) can be better than a low interest loan. If you make 10% from cash on hand and have 5% loans then you got free money and 5% gains.

3 ms·

The lack of understanding of basic finance and statistics is crippling for many people. I know fairly smart people who understand calculus but just cannot acce

by josephorjoe 5y ago

fn-mote 5y ago
> I know fairly smart people who understand calculus but just cannot accept that there is a problem with paying interest on all of their purchases. I do not think this is a problem with education. It sounds like they understand, they just do not care. I think that is a different (harder) problem. You're unhappy that people do not believe it is beneficial to be debt-free. As you note - there are many groups who benefit (profit) from this kind of spend-spend-spend consumption culture. Frankly, I am astounded that COVID did not bring about a massive economic collapse that would have driven the point about financial security home in a dreadful way. I'm grateful it didn't, though.
tekknik 5y ago
Well there’s a difference between high interest debt and just debt. And agreed don’t get into high interest debt to begin with and pay it off ASAP if you do anyway. But avoiding interest all together is a massive oversimplification and shows you don’t understand that cash in hand (and the ability to earn more from it) can be better than a low interest loan. If you make 10% from cash on hand and have 5% loans then you got free money and 5% gains.