- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Folks disparaging AT&T's NEXT plan have no understanding of time value of money
Posted on 1/15/16 at 10:23 pm
Posted on 1/15/16 at 10:23 pm
May I suggest you read up on the concept of Time Value of Money? It's always better financially to pay for something (the cost of the phone) in interest free installments over a period of time than paying for the whole thing up front.
Investopedia: Time Value of Money (TVM)
quote:
DEFINITION of 'Time Value of Money - TVM'
The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.
Also referred to as "present discounted value".
Investopedia: Time Value of Money (TVM)
This post was edited on 1/15/16 at 10:24 pm
13
Posted on 1/15/16 at 10:25 pm to euphemus
The scariest part of this is, credit usage has been increasing at an unreal rate and these people own credit in both cards and large ticket items.
Posted on 1/15/16 at 10:25 pm to euphemus
No one likes smug pretension.
Posted on 1/15/16 at 10:26 pm to euphemus
Honestly, the issue is their feeling of entitlement to a subsidized phone.
Posted on 1/15/16 at 10:27 pm to euphemus
quote:
(Assuming you already realize that you pay >$650 for a high end smartphone no matter what plan you are on... no a smartphone does not cost $200 in any scenerio).
And thats the irony, if you're smart enough to know it's a waste to fork hundreds on that garbage, you also know that you are judge for not. Financial success based on wise choices gets you less play than shiny idiotic debt
Posted on 1/15/16 at 10:29 pm to Kujo
The NEXT Plan sucks.....if you are going to get a phone........just buy one outright......take the savings from not being under the NEXT plan rule and then sell the phone when done and move on.
Posted on 1/15/16 at 10:30 pm to euphemus
Economics uses the worst terminology and definitions of any discipline. No one should ever consider it empirical, scientific, rigorous, or even legitimate. For shite's sakes, they use instrumental variables. Bunch of retards.
Posted on 1/15/16 at 10:32 pm to euphemus
You don't have to switch to Next you know.
Posted on 1/15/16 at 10:38 pm to sullivanct19a
quote:
Economics uses the worst terminology and definitions of any discipline. No one should ever consider it empirical, scientific, rigorous, or even legitimate. For shite's sakes, they use instrumental variables. Bunch of retards.
Economist make Astrology look legitimate.
Posted on 1/15/16 at 10:41 pm to euphemus
So, is the pay pretty good for an AT&T salesperson?
Posted on 1/15/16 at 10:43 pm to euphemus
Somebody is taking Econ this semester 
Posted on 1/15/16 at 10:44 pm to euphemus
quote:
It's always better financially to pay for something (the cost of the phone) in interest free installments over a period of time than paying for the whole thing up fron
It's a cell phone, not a sky scraper. Pay for it and be done with it.
Posted on 1/15/16 at 10:56 pm to kywildcatfanone
But they will go so far as to bring out the manager and a calculator and pretty much harass me. Felt like the Jehovahs bought out AT&T.
Posted on 1/15/16 at 10:58 pm to Hammertime
Not an econ issue, finance.
And btw, adding the human element to his position kind of nullifies the NPV argument. Being that the payment shows as a credit obligation, your risk factor increases which thereinby increases the cost of borrowing. And it doesn't take much in this situation to flip the tables. Ie. Borrowing for free on something small effecting the cost on borrowing on something larger like a double wide in the finest of trailer parks
And btw, adding the human element to his position kind of nullifies the NPV argument. Being that the payment shows as a credit obligation, your risk factor increases which thereinby increases the cost of borrowing. And it doesn't take much in this situation to flip the tables. Ie. Borrowing for free on something small effecting the cost on borrowing on something larger like a double wide in the finest of trailer parks
Posted on 1/15/16 at 10:59 pm to euphemus
Why bash people who want to OWN their phone? It's not like the device is a stock or a bar of silver. If it breaks before it's paid you're stuck paying for it anyway and the replacement phone too.
Posted on 1/15/16 at 11:07 pm to jcaz
So what about while you are leasing the phone and it's gets stolen or damaged and have to pay for it in full before getting a new one. That part sucks.
Posted on 1/16/16 at 12:06 am to euphemus
thats fine and dandy if its a 10 years of payments, but a 2 year contract is bufu, get your facts straight
Posted on 1/16/16 at 12:25 am to sullivanct19a
As an economist, I can somewhat agree and disagree with you. Though IVs are strongly rooted in stat theory.
Posted on 1/16/16 at 12:37 am to euphemus
What most people (including me) don't like is that for years we paid a "premium" AT&T rate with the expectation that every 2 years we could get a brand new phone.
Now, we are expected to pay that same ridiculous price and pay for the phone.
If I'm going to pay for the phone anyway, why should I stay with them instead of saving $100 month and getting unlimited everything from a wal mart plan? No way in hell am
I resigning with AT&T.
Now, we are expected to pay that same ridiculous price and pay for the phone.
If I'm going to pay for the phone anyway, why should I stay with them instead of saving $100 month and getting unlimited everything from a wal mart plan? No way in hell am
I resigning with AT&T.
Posted on 1/16/16 at 12:38 am to euphemus
I purchased an unlocked phone for $500. No sales tax and free shipping. With the monthly service charge of the carriers at the time I did this, I figured out that my $500 up front saved me $700 in what I would have paid in monthly fees under contract by doing an upgrade.
You won't convince me that I made a bad choice.
You won't convince me that I made a bad choice.
Page 1 of 2
Back to top
Follow TigerDroppings for LSU Football News