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3 Nerd-Its
Velocity of Money
But notice, most of these cutbacks all affect someone else in the economic chain.
That's a very good point. While the action saves you money in the short run, it's actual impact in the big pictures is slowing the Velocity of Money. An interesting article on Safe Haven describes the influence of Money Velocity on inflation. It's just one of those spiraling factors that unfortunately perpetuate a cycle.
I would suppose that chaos theory could be modeled fantastically upon the financial services industry using the appropriate data.
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Yanking on the Economic Chain
Last summer, because I'm cheap, I absolutely refused to pay $3.00 for gas. I had filled my vehicle with $2.99 gas and I rode my bike to work, drove as little as possible and just as I was running on fumes, the price dipped to 2.99 (point 9). It was a meaningless game, I know, but I kidded myself into feeling satisfied about it. I showed them!
This year the game was over before it could even start. All of a sudden this year, from about last October on, I've had to do weird things with transferring money around just to pay the bills; things I never had to do before. I even opted for one of those "0% for 15 months" credit cards to offset some expenses we normally would have had no problem paying off all at once before all this. Suddenly money is the topic of conversation a lot. So what have we done? Not having city trash pickup where we live, we stopped the trash pickup service and now just drive it to the transfer station ourselves saving about $20-$25 a month. (It's not far) We got rid of our cell phones when the contract ran out because neither my wife nor I have a real need for them other than for convenience, there's ~$100 dollars a month. We rarely eat out anymore, and to be honest, I don't miss it much; especially when it probably saves about $200-$250 a month for a family of four. My wife has become real good with coupons at the grocery store which seem to save $50 or so for a big shopping trip. She's a good cook too, so no one's suffering. Oh, and I shut off and drained the hot tub for the winter. Yeah I know -- poor us.
It's actually amazing what you can save when you want to. But notice, most of these cutbacks all affect someone else in the economic chain. Except the hot tub, I guess; the electric companies seem to be O.K. these days.
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