On Fri, 2004-01-23 at 09:11, Bryan Murdock wrote:
> On Thu, 2004-01-22 at 19:30, Andrew Jorgensen wrote:
> > Hyrum Wright wrote:
> > 
> > > So, I'm trying to determine the best way to blow my
> > > as-of-yet-undetermined-amount of a tax return.
> > 
> > I may be a little boring, but what about saving or investing it?  I find 
> > that there's always a time during the year when I wish I had some money 
> > saved somewhere.
> 
> Are you kidding?  There's a reason the interest rates are low right now,
> don't invest, spend spend spend, take out a loan and spend some more! 
> The economy needs you! ;)

Investing /is/ spending and helps the economy immensely. Saving is also
spending because the money I put in the bank gets loaned back out to
someone else who is more likely to "spend spend spend" than I am, or
invested, which again allows someone else to spend it.

The difference between spending and saving / investing is that when you
spend you get a liability in return (some object that costs you money to
keep or at least doesn't make you any more money), but when you save /
invest you get an asset in return (something that makes you more money).

Unless the interest rate on your savings account is less than the rate
of inflation.

I didn't suggest hiding it under a mattress. ;-)

--
Andrew Jorgensen


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