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  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 10th Jan 17, 8:50 AM
    • 77Posts
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    MSE Eesha
    Would you take £500 now or £1,000 in a year? And what that says about you
    • #1
    • 10th Jan 17, 8:50 AM
    Would you take £500 now or £1,000 in a year? And what that says about you 10th Jan 17 at 8:50 AM
    This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

    Read Martin's "Would you take £500 now or £1,000 in a year? And what that says about you" Blog.

    Please click 'post reply' to discuss below.
Page 1
    • Mobeer
    • By Mobeer 10th Jan 17, 9:53 AM
    • 1,614 Posts
    • 4,308 Thanks
    Mobeer
    • #2
    • 10th Jan 17, 9:53 AM
    • #2
    • 10th Jan 17, 9:53 AM
    It also depends upon how sound a person's finances are right now. If the kids have no food or the loan shark is coming around to collect then having the money right now could be very valuable.
    • PasturesNew
    • By PasturesNew 10th Jan 17, 9:55 AM
    • 57,607 Posts
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    PasturesNew
    • #3
    • 10th Jan 17, 9:55 AM
    • #3
    • 10th Jan 17, 9:55 AM
    Choice is a luxury.
    What you do would depend on how you're doing at the moment and what might occur in the next year.

    I'd take £1k in a year as I can live for a year without it.
    I'm sure the homeless man at the end of my street would prefer to take £500 now so he could rent a room.
    • DigForVictory
    • By DigForVictory 10th Jan 17, 10:21 AM
    • 6,491 Posts
    • 16,824 Thanks
    DigForVictory
    • #4
    • 10th Jan 17, 10:21 AM
    • #4
    • 10th Jan 17, 10:21 AM
    Absolutely depends on how the car's doing. Needs work badly £500 now - running fine, £1K later.

    But then I've been living without a working shower for four months, so it could be argues my priorities are a bit sideways. (The bathtub is just fine.)
    • megsykins
    • By megsykins 10th Jan 17, 12:15 PM
    • 208 Posts
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    megsykins
    • #5
    • 10th Jan 17, 12:15 PM
    • #5
    • 10th Jan 17, 12:15 PM
    This relates to pensions too - I know a number of people who opt out, as they need/want the money now, yet with employer contributions and interest it's worth much more in the long term. Playing around with an online calculator, every additional £10 a month I personally contribute into my pension, would equal £30pm more at retirement. Granted, pensions have failed so not guaranteed risk-free as per the example, and inflation to take into account, but a good comparison.
    • Malthusian
    • By Malthusian 10th Jan 17, 2:10 PM
    • 1,657 Posts
    • 2,378 Thanks
    Malthusian
    • #6
    • 10th Jan 17, 2:10 PM
    • #6
    • 10th Jan 17, 2:10 PM
    I'm an economist by training and work in the finance industry, so I'm fully aware of the future value of money. And I would take the £500 now.

    Anyone who goes around offering people £500 of free money or £1,000 a year later will be nowhere to be seen in a year's time. They'll be bust or in prison.

    If I'm proved wrong in a year's time, who cares, it was free money.
    • Wizard of Id
    • By Wizard of Id 10th Jan 17, 7:41 PM
    • 839 Posts
    • 4,141 Thanks
    Wizard of Id
    • #7
    • 10th Jan 17, 7:41 PM
    • #7
    • 10th Jan 17, 7:41 PM
    I'm an economist by training and work in the finance industry, so I'm fully aware of the future value of money. And I would take the £500 now.

    Anyone who goes around offering people £500 of free money or £1,000 a year later will be nowhere to be seen in a year's time. They'll be bust or in prison.

    If I'm proved wrong in a year's time, who cares, it was free money.
    Originally posted by Malthusian
    I don't think that you have read the blog properly.

    I am a saver at heart and I have no need for the money right now so I would wait the year for the full amount
    Every man is innocent until proven broke.


    Walk 2000 miles in 2017 - 605
    This week 46.3
    • takman
    • By takman 11th Jan 17, 8:03 AM
    • 1,991 Posts
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    takman
    • #8
    • 11th Jan 17, 8:03 AM
    • #8
    • 11th Jan 17, 8:03 AM
    I'm an economist by training and work in the finance industry, so I'm fully aware of the future value of money. And I would take the £500 now.

    Anyone who goes around offering people £500 of free money or £1,000 a year later will be nowhere to be seen in a year's time. They'll be bust or in prison.

    If I'm proved wrong in a year's time, who cares, it was free money.
    Originally posted by Malthusian
    As someone who works in the finance industry you should be well aware of how important it is to understand the details of any financial deal before you make a decision. You obviously havnt done this because the £1000 is guaranteed money as explained in the blog. Also you think Martin Lewis (who is the one offering the money) is going to be bust or in prison in a years time ? . Obviously you are assuming the deal is going to be offered to too many people but he actually says it is a "prize" so there is likely to only be one or a handful of winners.

    So unfortunately you have definetly made the wrong decision!.
    • dw1
    • By dw1 11th Jan 17, 8:08 AM
    • 28 Posts
    • 47 Thanks
    dw1
    • #9
    • 11th Jan 17, 8:08 AM
    • #9
    • 11th Jan 17, 8:08 AM
    Rephrase the question and I suspect the answers would be very different:

    "I'll put £1000 in a (non-interest-paying) account for you for free, with the condition that if you withdraw anything within the first year, there's a £500 penalty"

    The psychology of this blog post is really interesting, thanks Martin!
    • heth
    • By heth 12th Jan 17, 9:57 PM
    • 35 Posts
    • 22 Thanks
    heth
    Surely depends how desperate you are now?
    • parking_question_chap
    • By parking_question_chap 13th Jan 17, 6:55 PM
    • 847 Posts
    • 485 Thanks
    parking_question_chap
    I would take the elephant.
    • phillw
    • By phillw 16th Jan 17, 5:23 PM
    • 271 Posts
    • 120 Thanks
    phillw
    Surely depends how desperate you are now?
    Originally posted by heth
    MSE is mostly aimed at people who have good credit history, or by people who are in the process of rebuilding their credit history by paying off their debts. If someone is in a debt spiral and are desperate enough for £500 that they cannot wait a year, then this site doesn't really have much to offer.

    I'd hope that anyone that desperate for money isn't wasting time answering Martin's Twitter poll, assuming they had enough money to have access to Martin's Twitter poll in the first place. The answers will surely reflect that.

    I wouldn't necessarily take either offer, I'd ask for £2000 in 2 years instead.
    Last edited by phillw; 16-01-2017 at 5:27 PM.
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