Ultraman

Set a much higher goal. For example, if you (guys) want to buy a new hi-fi, think about to buy a new car or new house; if you (gals) want to buy a new purse or dress, think about to buy a 5 carat diamond or to travel to Europe for 2 months. Then you probably won't allow yourself to waste any unnecessary penny for the time being, and at the time you're about to have enough savings for your big goal, you may already lost the initial interest and you can set an even higher goal.... and so on. Huh, you'll be rich!

Ultraman

good idea

I'd like to add:

put all these funds into some kinds of medium to long term investment, you will be rich sooner than you could imagine
Littleprince 發表於 2009-12-2 15:27

Very true! But make sure to put it in some kind of bank savings but not stock market, no matter how "safe" they claim, it's not sure win.

Ultraman

and bank savings is sure win?  
快樂牛郎 發表於 2009-12-2 15:38

At least you won't lose your principal. Unless bank bankruptcy.

Ultraman

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快樂牛郎 發表於 2009-12-2 20:32

This is what I describe as rare situation. Do you expect HSBC, CIBC, BMO, ..... closed down in one night without any glue, or how accurate can you predict the fluctuation of stock market?
Or let me put it this way, putting money in a bank is safer than investing money in stock market. What do you think?

Ultraman

Well, let's say, you "can" gain big money in stock market, also you "can" win big money in casino, both of them have no guaranty but may let you lose big money too. You won't expect big interest return for any banking savings, but the risk is way lower.

Another example, car accidents happen everyday, but plane crash isn't, yet once it happens it has a much bigger chance that a lot more people would be killed. This is what you called "rare events that hurt the most", which is very true. However, I would say since it rarely happens, I consider riding in a car is more risky than taking a plane.

And, I think Lehman was a financial service corporation/investment company but not an official bank. Am I correct?