Comments on: The Present Versus The Future http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/ Simple, applicable personal finance advice for the modern world Sat, 20 Mar 2010 13:52:43 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: KMull http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33753 KMull Mon, 11 Jun 2007 03:17:17 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33753 We can't forget to live our lives. It is a fine balance. One that most people usually land on the wrong side of. We can’t forget to live our lives. It is a fine balance. One that most people usually land on the wrong side of.

]]> By: Martin http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33709 Martin Sun, 10 Jun 2007 23:59:31 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33709 I take your point Trent, but I also agree with Steve. Sometimes the future that you've been working hard for becomes the present, and when it does, you shouldn't always continue to sacrifice the present for the future. Otherwise you'll never get to enjoy that future you've worked so hard for. I just bought a brand new motorcycle. It's not going to help my future, but it's a reward for my past. A calculated reward. It's hit my investable networth around 3%, but sometimes there's more to life than having money in the bank. I take your point Trent, but I also agree with Steve. Sometimes the future that you’ve been working hard for becomes the present, and when it does, you shouldn’t always continue to sacrifice the present for the future. Otherwise you’ll never get to enjoy that future you’ve worked so hard for.

I just bought a brand new motorcycle. It’s not going to help my future, but it’s a reward for my past. A calculated reward. It’s hit my investable networth around 3%, but sometimes there’s more to life than having money in the bank.

]]> By: js http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33642 js Sun, 10 Jun 2007 19:45:17 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33642 tabletoo, I think you might have hit the nail on the head on why so many boomers were financially short sighted. Unlike the WWII generation who lived through the great depression and learned to save a lot exclusively in governments bonds and bank accounts rather than the "risky" stock market, boomers doubted there would be a future and didn't save enough period. They were wrong in their guestimate of what the future would be, and they should have saved more for retirement, run less debt etc. Now as a non-boomer doomer gloomer (ie a 30 something natural pessimist) looking at the world ahead I can see even more reason to be fatalistic than the boomers were. But I could be wrong. Better fund that retirement .... tabletoo, I think you might have hit the nail on the head on why so many boomers were financially short sighted. Unlike the WWII generation who lived through the great depression and learned to save a lot exclusively in governments bonds and bank accounts rather than the “risky” stock market, boomers doubted there would be a future and didn’t save enough period. They were wrong in their guestimate of what the future would be, and they should have saved more for retirement, run less debt etc.

Now as a non-boomer doomer gloomer (ie a 30 something natural pessimist) looking at the world ahead I can see even more reason to be fatalistic than the boomers were. But I could be wrong. Better fund that retirement ….

]]> By: tabletoo http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33570 tabletoo Sun, 10 Jun 2007 15:42:39 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33570 I am a baby boomer and went to grade school in Washington DC. In kindergarten and first and secon grade we regularly had aid raid drills. Then we moved to upstate New York and our school had bomb shelter drills. We learned about the atom bomb and we were basically taught that the world was going to end before we grew old. Also from what I learned it seemed that the world was getting so messed up ecologically (except that was before the use of the word ecology) that it would be wrong to bring more people into the world, it was considered irresponsible to have children. I'm not saying this was the message from my parents, just that this was the overall message I got. My wake up call was in my late thirties when I realized that I was probably not going to die young and that while the world was indeed going to hell in many ways ecologically, I was very likely going to be around a long time since my relatives are long lived, so I'd better do something about preparing for a healthy and secure old age. I am a baby boomer and went to grade school in Washington DC. In kindergarten and first and secon grade we regularly had aid raid drills. Then we moved to upstate New York and our school had bomb shelter drills. We learned about the atom bomb and we were basically taught that the world was going to end before we grew old. Also from what I learned it seemed that the world was getting so messed up ecologically (except that was before the use of the word ecology) that it would be wrong to bring more people into the world, it was considered irresponsible to have children. I’m not saying this was the message from my parents, just that this was the overall message I got.

My wake up call was in my late thirties when I realized that I was probably not going to die young and that while the world was indeed going to hell in many ways ecologically, I was very likely going to be around a long time since my relatives are long lived, so I’d better do something about preparing for a healthy and secure old age.

]]> By: Rob http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33567 Rob Sun, 10 Jun 2007 15:26:46 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33567 I had a conversation with someone about this recently, doesn't anyone remember the story about the ant and the grasshopper anymore? Or do they remember, but think that the government will bail out the grasshopper? I had a conversation with someone about this recently, doesn’t anyone remember the story about the ant and the grasshopper anymore? Or do they remember, but think that the government will bail out the grasshopper?

]]> By: Mark Shead http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33408 Mark Shead Sun, 10 Jun 2007 00:20:25 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33408 There has been some research into the phenomena known as time discounting. On average, people value $68 today the same as $100 in 12 months. For more info see: http://www.productivity501.com/time-discounting/87/ There has been some research into the phenomena known as time discounting. On average, people value $68 today the same as $100 in 12 months.

For more info see:
http://www.productivity501.com/time-discounting/87/

]]> By: Humberto http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33384 Humberto Sat, 09 Jun 2007 22:53:12 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33384 One book that speaks about this is called "Don't Eat The Marshmallow...Yet!" by Joachim de Posada and Ellen Singer. Maybe Trent can provide us with one of his great reviews about this book. One book that speaks about this is called “Don’t Eat The Marshmallow…Yet!” by Joachim de Posada and Ellen Singer. Maybe Trent can provide us with one of his great reviews about this book.

]]> By: Steve http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33363 Steve Sat, 09 Jun 2007 20:54:53 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33363 I think that deferral of current desire is a good trait, but I'm sure like some other frugal people I occasionally go too far the other way. Sometimes I think I defer too much in my effort to save money, live frugally, etc. The real challenge is finding a balance between enjoying your life in the moment and preparing yourself for a (relatively) worry-free financial future. I think that deferral of current desire is a good trait, but I’m sure like some other frugal people I occasionally go too far the other way. Sometimes I think I defer too much in my effort to save money, live frugally, etc. The real challenge is finding a balance between enjoying your life in the moment and preparing yourself for a (relatively) worry-free financial future.

]]> By: S. B. http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33355 S. B. Sat, 09 Jun 2007 20:19:16 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33355 I've often heard that the ability to delay gratification as a child is a good predictor of future academic and financial success. I don't have a source on that, so I can't vouch for the authenticity of those sorts of claims, but it does seem logical that it's likely to be true. Supposedly there have been studies on this idea. One of your readers may know more about that... I’ve often heard that the ability to delay gratification as a child is a good predictor of future academic and financial success. I don’t have a source on that, so I can’t vouch for the authenticity of those sorts of claims, but it does seem logical that it’s likely to be true.

Supposedly there have been studies on this idea. One of your readers may know more about that…

]]> By: Xtine http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33349 Xtine Sat, 09 Jun 2007 19:47:29 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33349 The second scenario rings a bell. My uncle is a lot like that, but fortunately for his wife and kids, still (all things considered) responsible with his benders. He knows they're coming, and budgets for them. He will also work at least two FT jobs and a PT one while working. ...He's bipolar, and untreated. It's not the most desireable setup, but it's also not the worst. And it does go hand-in-hand with poor impulse control - the hallmark of manic episodes. The second scenario rings a bell. My uncle is a lot like that, but fortunately for his wife and kids, still (all things considered) responsible with his benders. He knows they’re coming, and budgets for them. He will also work at least two FT jobs and a PT one while working.

…He’s bipolar, and untreated. It’s not the most desireable setup, but it’s also not the worst. And it does go hand-in-hand with poor impulse control – the hallmark of manic episodes.

]]> By: Wanda http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33340 Wanda Sat, 09 Jun 2007 18:30:07 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33340 It's good to plan for the future, but it's important that you don't completely neglect today (not saying that you advocate that, Trent). "Every good financial decision is based on the future" - I think that's generally, but not always, true. The financial decision to take a around-the-world trip is probably very much based in the present - and it can be a great decision. Sure, you'll have the memories in the future, but what you're spending money (and time on) is the experiences you'll have along the way. It’s good to plan for the future, but it’s important that you don’t completely neglect today (not saying that you advocate that, Trent). “Every good financial decision is based on the future” – I think that’s generally, but not always, true. The financial decision to take a around-the-world trip is probably very much based in the present – and it can be a great decision. Sure, you’ll have the memories in the future, but what you’re spending money (and time on) is the experiences you’ll have along the way.

]]> By: !wanda http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33339 !wanda Sat, 09 Jun 2007 18:23:49 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33339 It's only in recent history that it's been <i>possible</i> to save for the future. Before civilization- the vast majority of human history- most goods would spoil quickly, and anyway you couldn't own much more than your family could haul on their backs. Even after civilization, regular folks did not have access to institutions that would responsibly guard their money. Even if they had, the history of most nations consists of a series of war and drought and unrest. Why save money if some new government replaces the currency and kills all the bankers? Why save money if bandits will just come along and steal it? It's only in the past few hundred years in developed countries where the poor and middle class were able to put saved money anywhere besides the mattress and where the world has been peaceful enough to believe in a stable enough future to save for. There's some report out now that analyzes the spending habits of the world's poor. People who subsist on less than a dollar a day still somehow manage to buy alcohol, tobacco, sugar, and stuff for religious festivals. Maybe you'd chide them for their bad decisions, but what else would they do with a little extra money? Banks don't serve these people, and having a little money saved would make them targets of criminals and greedy friends and relatives. It's not impossible, but it's very, very difficult. Anyway, there's a reason why saving for the future, instead of spending money today, is hard. It's a fight against the lessons of tens of thousands of years of human existence (and billions of years of animal evolution, but there are people who comment here who don't believe in that). Fortunately, people have also been exercising logic and restraint for those tens of thousands of years, and we can use these traits to fight against impulses to live for today instead of tomorrow. It’s only in recent history that it’s been possible to save for the future. Before civilization- the vast majority of human history- most goods would spoil quickly, and anyway you couldn’t own much more than your family could haul on their backs. Even after civilization, regular folks did not have access to institutions that would responsibly guard their money. Even if they had, the history of most nations consists of a series of war and drought and unrest. Why save money if some new government replaces the currency and kills all the bankers? Why save money if bandits will just come along and steal it? It’s only in the past few hundred years in developed countries where the poor and middle class were able to put saved money anywhere besides the mattress and where the world has been peaceful enough to believe in a stable enough future to save for.
There’s some report out now that analyzes the spending habits of the world’s poor. People who subsist on less than a dollar a day still somehow manage to buy alcohol, tobacco, sugar, and stuff for religious festivals. Maybe you’d chide them for their bad decisions, but what else would they do with a little extra money? Banks don’t serve these people, and having a little money saved would make them targets of criminals and greedy friends and relatives. It’s not impossible, but it’s very, very difficult.
Anyway, there’s a reason why saving for the future, instead of spending money today, is hard. It’s a fight against the lessons of tens of thousands of years of human existence (and billions of years of animal evolution, but there are people who comment here who don’t believe in that). Fortunately, people have also been exercising logic and restraint for those tens of thousands of years, and we can use these traits to fight against impulses to live for today instead of tomorrow.

]]> By: Bill http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33318 Bill Sat, 09 Jun 2007 17:06:18 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33318 One professor (Princeton?) argued years ago that the difference in lower class versus upper class was largely a difference of time horizon, not money. Even people with great wealth can squander what they're given by focusing on the present (e.g. Paris Hilton) One professor (Princeton?) argued years ago that the difference in lower class versus upper class was largely a difference of time horizon, not money.

Even people with great wealth can squander what they’re given by focusing on the present (e.g. Paris Hilton)

]]> By: Rob in Madrid http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/comment-page-1/#comment-33310 Rob in Madrid Sat, 09 Jun 2007 16:20:35 +0000 http://www.thesimpledollar.com/2007/06/09/the-present-versus-the-future/#comment-33310 It's also called poor impulse control (hat tip to Daniel Goleman for that one) and it has been at the heart of 22 years of disaterious financial decisions for my wife and I. While time and alot of financial pain have dulled it hasn't completely gone away. For us hearing about that was a real "Aha" moment, finally some understanding on why we kept repeating the same mistakes. Well we haven't conquered it completely it has allowed us to avoid budget busting decisions. Poor impulse control is most often associated with drug and alcohol abuse. It’s also called poor impulse control (hat tip to Daniel Goleman for that one) and it has been at the heart of 22 years of disaterious financial decisions for my wife and I. While time and alot of financial pain have dulled it hasn’t completely gone away. For us hearing about that was a real “Aha” moment, finally some understanding on why we kept repeating the same mistakes. Well we haven’t conquered it completely it has allowed us to avoid budget busting decisions.

Poor impulse control is most often associated with drug and alcohol abuse.

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