'10 things about work, life and money every graduate should know' blog discussion

Former_MSE_Helen

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 "10 things about work, life and money every graduate should know'" Blog.

Please click 'post reply' to discuss below.

Rafter

Thanks for sharing Martin - a great list of advice and pearls of wisdom - wish my graduation speech had been as useful/ memorable.

The biggest one for me is having the right attitude to debt. As a society I think we would all be better off if access to unsecured credit was lower and we werent allowed to borrow more than 25% of our income unless it was for an asset such as a house or car. Even then the repayment should be high so we aren't paying for a night out, food or petrol over a year after we spent the money.

It would take some adjustment, but I believe as a society we would be much better off, much less wasteful and much more appreciative if many of us weren't slaves to debt.

R.

dimbo61

"ASSET" and CAR are not two words I would put together!
The costs of owning and running a car can mean your ASSET is losing you money every week/month.
educated into a world of debt

real1314

dimbo61 wrote: »

"ASSET" and CAR are not two words I would put together!
The costs of owning and running a car can mean your ASSET is losing you money every week/month.
educated into a world of debt

Equate a car to a machine in a factory.

The machine costs money, requires energy and maintenance, loses value; just like a car.

The machine produces something of greater value than the sum cost of its requirements. e.g a product.

You could hire a machine, which might reduce the initial cost, value loss and maintenance; but it would probably cost more overall. (Hire car)

You could get someone else to produce the product, but you'd have less control, flexibility and economy of scale. (Public Transport)

The "product" of a car could be a cash saving over alternatives, could be the extra flexibility, but is more often a time saving.

Time is something that you should place value on and should account for in your spending plans.

These are the reasons why a car can be an asset.

ashleyriot

real1314 wrote: »

Time is something that you should place value on and should account for in your spending plans.

Seconded - at the very least, know your hourly wage and add another 50% on for tax and NI.

Then you'll know if it's worth it.

Atidi

dimbo61 wrote: »

"ASSET" and CAR are not two words I would put together!
The costs of owning and running a car can mean your ASSET is losing you money every week/month.
educated into a world of debt

Read here to understand what the financial term 'Asset' really means

http://www.investorwords.com/273/asset.html

Most assets reduce in value over time and/or with use.
Real Estate is about the only odd ball in that regard, and that probably is more to do with the pressures of supply & demand.

Depreciation of assets is something that can be offset against tax in the business world, and you will find this in almost all company accounts ... but the rules associated with personal taxation are quite different.