Would you take £500 now or £1,000 in a year? And what that says about you

MSE_Eesha
MSE_Eesha Posts: 162 MSE Staff
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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.
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Comments

  • Mobeer
    Mobeer Posts: 1,851 Forumite
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    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
    PasturesNew Posts: 70,698 Forumite
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    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
    DigForVictory Posts: 11,905 Forumite
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    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
    megsykins Posts: 210 Forumite
    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
    Malthusian Posts: 10,931 Forumite
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    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
    Wizard_of_Id Posts: 5,512 Forumite
    Malthusian wrote: »
    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.

    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 :)
  • takman
    takman Posts: 3,876 Forumite
    Combo Breaker First Post
    Malthusian wrote: »
    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.

    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 ? :rotfl: . 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
    dw1 Posts: 37 Forumite
    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
    heth Posts: 37 Forumite
    First Anniversary Combo Breaker
    Surely depends how desperate you are now?
  • parking_question_chap
    parking_question_chap Posts: 2,694 Forumite
    First Anniversary Combo Breaker First Post
    I would take the elephant.
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