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There is frugality and there is taking inflation into account when deciding on save vs loan. For the last many years it was net profit to take loans, spend and
by lstodd 6mo ago
There is frugality and there is taking inflation into account when deciding on save vs loan. For the last many years it was net profit to take loans, spend and pay them back later because inflation meant you got more goods/services that way. On the other hand keeping cash/savings over some smallish buffer where opportunity costs dominate is/was always net loss. That not touching US-specific stuff like insane student loans, credit card terms or healthcare.
- kristianp 6mo agoInflation has caused my savings and investments to take a hit in real value. Now with oil prices we're getting another inflation hit.
- bdangubic 6mo ago> For the last many years it was net profit to take loans, spend and pay them back later because inflation meant you got more goods/services that way. this would he true if the wages kept up with inflation and of course that as we know well has not even remotely been the case