Saving Money as Prices Increase

[Jstpssng]

You ain't seen nothing yet.
Chipmakers brace for more trouble as Russia limits exports of rare gases

I won't say that I blame them. I also won't say "I told you so", although for decades some of us have been predicting national security issues from relying on other countries for our needs.

OK, I guess that I just did.

 

[Larry Caldwell]

There are bonds and there are bonds. Long term treasuries are taking a dump. Who wants a 1% bond when new ones are over 3% and headed up? Short term corporate bonds yield better and churn faster. A short term bond fund may drop a few percent, but it will do very well when things stabilize at a higher interest rate. Give it a year.

Stocks are just starting to go down, and we haven't got to the recession yet. In 2008 they dropped about 50%. There will be some bargains available for anyone with cash, maybe later this year or next year.

There are articles out there beating the apocalypse drum. I don't think we are there yet, but I do think inflation will be with us for a while. Half of all dollars in circulation were put there in the last four years.

If you have a low interest mortgage, stick with it no matter what they say your home is worth. They may tell you that you are upside down, but people who backed out of their mortgage in 2009 lived to regret it. With inflation roaring, in 10 years your mortgage payment will be pocket change.

 

[5030]

I help mow the large graveyard at our 400 year old church twice a month, and three cans of gas doing that is really adding up. Need to keep track of it better since it's charity; gas is no longer
an "incidental". It's a lot of money now.

Time for one of those new EV toaster lawn mowers.

 

[daugen]

Time for one of those new EV toaster lawn mowers.

It takes me about 8 hours using a four foot mower to mow around approx 3500 graves and lots of open area.
I've been mowing it off and on for about 25 years. We can mow about an hour faster with the big church ZT, but I take my own JD X390 over
since I can fit between many of the gravestones the bigger mower can't. I go slow, it's very exacting work since you just cannot wack into a 300 years old headstone.
But to your point, you bet, these folks aren't moving around.
So get a nice JD ag gps program, not sure it would hold that many data points (?) and let an electric Roomba mower just keep mowing in there.

I have to buy gas for the Volvo and at least one empty five gallon can this morning. 120 bucks likely. But I won't skimp with no name gas. Not after I plugged an injector in my Audi
due to using "non certified" gas. I will skimp on octane, use Plus instead of Premium in Volvo intermittently with using recommended premium. I try to do every other tank, more like mental games to save a buck or two. Which i will then use to buy a McDonalds ice cream cone, if the machine is working.

 

[daugen]

Just bought a new to me Club Car golf cart. No question, I wanted batteries. Plus they finally got smart and got rid of the traditional buzz box
battery chargers and are now using moderately smart ones. So two steering zerks and an automatic battery watering system.
And no noise.
The punch line here is not the cart, but fact that six months ago I was pretty sure the stock market would tank, and took money out at the very height of the market.
I used that money six months later to buy a cart for cash using money that was worth a lot more than if I hadn't planned for it.

sometimes it's not yes or no but timing

Bonds haven't been the other side of the equity/bond teeter totter for a number of years now. You just lose less with bonds.
Federally backed bonds such as TIPS have benefits.
I'm an old boater so bonds to me are the "anchor to windward". Something to hold on a little better when the wind is howling.

At least the local banks will now, hopefully, start offering CDs and other safe investments that make sense again. CD's have been like putting money in your mattress for a long time.
With 8 percent inflation, if you want to keep up, you have to be earning, earning, earning. Dividend stocks help.
And as someone who used to be in the business, I think it's partially rigged anyway. You get good news and the market drops.
Because it wasn't good enough news or because someone is manipulating in the background.

 

[SouthernSky]

Interesting about the CDs. The best I’ve seen so far is a 2.1% rate on a 2-year and a 2.6% return on a five-year with Capital One.

If inflation climbs, will CDs returns go up?

 

[Larry Caldwell]

Just bought a new to me Club Car golf cart. No question, I wanted batteries. Plus they finally got smart and got rid of the traditional buzz box
battery chargers and are now using moderately smart ones. So two steering zerks and an automatic battery watering system.
And no noise.
The punch line here is not the cart, but fact that six months ago I was pretty sure the stock market would tank, and took money out at the very height of the market.
I used that money six months later to buy a cart for cash using money that was worth a lot more than if I hadn't planned for it.

sometimes it's not yes or no but timing

Bonds haven't been the other side of the equity/bond teeter totter for a number of years now. You just lose less with bonds.
Federally backed bonds such as TIPS have benefits.
I'm an old boater so bonds to me are the "anchor to windward". Something to hold on a little better when the wind is howling.

At least the local banks will now, hopefully, start offering CDs and other safe investments that make sense again. CD's have been like putting money in your mattress for a long time.
With 8 percent inflation, if you want to keep up, you have to be earning, earning, earning. Dividend stocks help.
And as someone who used to be in the business, I think it's partially rigged anyway. You get good news and the market drops.
Because it wasn't good enough news or because someone is manipulating in the background.

Yes, the market has been flashing warning signals for quite a while. I have no idea why people think you can't "time the market." It's like they can't do math. You don't have to sell at the top or buy at the bottom to come out pretty good. All you have to do is dodge the disasters and buy the rubble. What gains did you lose by selling 6 months ago? Maybe 6%? Weighed against a 20% (or more) drop, hanging in there would have been a big loser.

I have to buy gas for the Volvo and at least one empty five gallon can this morning. 120 bucks likely. But I won't skimp with no name gas. Not after I plugged an injector in my Audi
due to using "non certified" gas. I will skimp on octane, use Plus instead of Premium in Volvo intermittently with using recommended premium. I try to do every other tank, more like mental games to save a buck or two. Which i will then use to buy a McDonalds ice cream cone, if the machine is working.

Blame the plugged injector on not changing the fuel filter. I don't know about Volvo, but it is often a nightmare to change the fuel filter on an American car. I don't understand why they design it into an inaccessible location, but it should not take two hours of labor just to change a filter. I just changed the fuel filter on my Kubota, and it took five minutes. It needed it, too.

I run an injector lube and cleaner in my pickup. I buy the stuff by the gallon, and refill little bottles. I add 6 oz. to the tank with every fill up. I think that does more good than buying premium gas.

 

[daugen]

Larry, I use Sea Foam in everything regularly. Magic elixir to me. No diesels anymore so pretty simple

Audi had 31k likely on original fuel filter. I drove back from VA on three cylinders, what a treat that was

I did the same thing when I bought Amazon stock at 600, not quite on a whim, thought they were serious outperformer.
Which they became. Stock went over 3000, I sold off half the stock, ate a little capital gains, but took the increase and put half down on a new
Massey 4707. I thanked Mr Bezos every time I drove that very nice tractor.

 

[Larry Caldwell]

The only thing I run Seafoam in is small engines. When I buy 5 gallons of non-ethanol gas I mix Seafoam into it, along with Sta-Bil. Then I mix Red Line 2-cycle oil for air cooled 2-cycle engines. I have a Husquvarna chainsaw that has been running fine for 27 years now. That may be voodoo, but the real secret is that I always store it dry. It doesn't get that much use, but I have gone through two bars and about 20 chains over the years. I use Red Line because it is formulated for hot running racing bikes, not water cooled outboards. My 2-cycle engines run full load-full throttle in nasty, dusty, dirty conditions, so I keep their innards as clean and lubricated as I can.

A big part of my comfortable retirement is that I moved my entire retirement fund into cash when gas hit $4/gallon in late 2006. I watched stocks go up for months, and just sat on it. When things finally took a dump I bought back in. By 2011 I had tripled my money. I retired in 2012, and since then have stuck with dividend stocks for the income. I have too much cash on hand right now, but am waiting for bargains to present themselves. If we have a recession, I'm expecting auctions to be worth bidding at again.

Recessions are a great way to get rich. I learned that as a teenager. I grew up in a small town. The owner of the grain elevator rescued it from bankruptcy in The Depression in exchange for half interest. He took out a life insurance policy on the original owner to cover the company debt. The original owner was gracious enough to die, giving him full ownership of a debt-free business. He leveraged the whole thing with a $10,000 investment in the '30s that turned into $millions 20 years later.

 

[daugen]

well I'd say these filters were a tad overdue. Sediment filter a mess, other one not much better.
Lot of iron, lot of copper. Water pressure greatly increased as expected. I went 16 months on these, should have changed them beginning of year.
And this mess is why.

watering system on golf cart seems to be working well. Watching water go down like IV tube