Join the ChooseFI community

Connect with people pursuing financial independence, get practical advice, and find local groups on the path to freedom.

Welcome back

Sign in to continue where you left off.

or continue with email
or sign in with email
or
Check your email for a 6-digit code.
Login code

Didn't get it?

·

Already a member?

By continuing, you agree to ChooseFI's Terms of Service and acknowledge our Privacy Policy.

ChooseFI community — Save, Invest, Freedom
Login
Financial Independence

Savings rate, FI number, and the path to freedom.

Retirement Strategies

Withdrawal plans, Roth ladders, and early access.

Investing

Index funds, asset allocation, and real estate.

Tax Strategies

Roth conversions, capital gains, and FI tax planning.

Earning More

Career growth, side hustles, and entrepreneurship.

Money Mindset

Beliefs, purpose, and financial psychology.

Health & Fitness

Exercise, nutrition, and mental wellness.

Are Algos and the Financially Irresponsible making it harder for us?

Are Algos and the Financially Irresponsible making it harder for us?

vagrant1
vagrant1 316 XP · · 7 replies

I have a theory. Well, theories (plural):

  1. THEORY #1 - Part of the inflation of everything is being driven by the "Financially Irresponsible" paying WHATEVER for just about ANYTHING. You know these people. They don't flinch at the cost of anything. They just pay whatever it costs because they want it. So many people are SO bad at money (and / or restraining themselves) that they pay whatever it costs to get a thing because they just want it. I think companies are onto this (World Cup Ticket prices anyone?!?!) And so companies charge whatever and get away with it.
  2. THEORY #2 - Everything we do is tracked. AI and Algos are working against us all to try to get us to buy more stuff at the highest possible price (enter dynamic pricing!!!) I think companies will continue to get better and better at this. I seem to see fewer and fewer "deals" to be had at any place I shop.

The result of all this? The inflation of everything. Making it ever harder for the savers and investors get ahead.

Thoughts? Am I way off here?

Share
Share on Facebook
Share on X
Share on Reddit
Share via Email
Copy link

What if you didn't have to fully retire?

Financial freedom doesn't mean quitting work. Design a life where work is optional.

Explore Barista FIRE

Replies (7)

getcustomessayhelp

getcustomessayhelp

3 days ago

Preparing a thesis requires careful research, strong analysis, accurate citations, and a clear academic structure. I came across this resource while exploring Thesis Writing Service

s, and the information provided some useful insights into organizing the writing process and handling different stages of thesis preparation. Thanks for sharing such a helpful resource.

BajaInmigrante

BajaInmigrante

51 XP

1 week ago

Agree with theory 2. Algos are a rapidly growing segment of “dynamic pricing “. Some time ago, I listened to an economics/tech podcast discussing certain mega corporations, with assets and reach greater than nation states, each essentially being their own walled online kingdom. The guest went on to opine, these algorithms, using the information harvested about us, then present products and services It decides we need to purchase, and at what price point. One of his statements about the options/choices in these walled gardens was essentially “ what each of us see is all there is.” (These choices presented are our some total of possible goods, services and options). However, each of our views, options, choices and price points in the same walled garden are uniquely different, not the same and based on what the algo Decides is best for each of us.

vagrant1

vagrant1

316 XP

1 week ago

1000000%

Before becoming a teacher I worked in tech (Video Game Designer) and during my time in the industry I got to witness the rise of data science, of the tracking of EVERYTHING a person does take foot…and how all the data is essentially weaponized against the user / customer to try to get them to buy as much stuff for the highest possible price point. It's absolutely shameful (and unethical) in my view and really grates me to know that we're all being subjected to jedi mind tricks in the name of profit. I'm all for a business earning an honest buck….but there's a line I feel that's absolutely been crossed (when you manipulate human emotions for your own gain).

Matt_

Matt_

341 XP

1 week ago

Don't obscene corporate profits make it easier for investors to get ahead?

vagrant1

vagrant1

316 XP

1 week ago

Not wrong here….in fact, owning stocks is absolutely our hedge against inflation. If inflation rages, then it stands that revenues (and following…profits) for companies should elevate as well along with it.

Those that do NOT own stocks (or are early in their journey and trying to find the margin in their budgets TO invest) may have a harder time getting starting because the cost of things is rising so rapidly.

Indeed, it's absolutely a never-ending "race" of sorts. To "win" you MUST outpace inflation.

Thankfully, I own stocks (index funds like VOO and VGT) but the area I'm struggling in at the moment is that my WAGES are absolutely NOT keeping up with inflation. And in the field I work in (I'm a teacher) I don't have many levers to juice that income. I've got my master's degree and my years of experience in (and thus, essentially maxed out where I lie on the pay scale). My investments are doing ok but my monthly income, my wages, are lagging inflation badly the past few years.

Matt_

Matt_

341 XP

1 week ago

I feel you. I'm a mail carrier so I'm in a similar boat. The pension makes it a pretty good path towards traditional retirement, but I'm trying to retire at 50. Wages aren't keeping up with inflation.

Good luck to you.

Roberto Sánchez

Roberto Sánchez

3,584 XP

1 week ago

I agree that "part" of inflation is being driven as you say. But there are lots of other factors at work as well. We are now in the 4th or 5th generation (depending on how you count them) of Americans who have lived partly or completely in a materialist/consumerist society: the Silent Generation, Baby Boomers, Generation X, Millennials, Generation Z. (I'm omitting Generation Alpha as they are not yet adults.)

Along the way, women entered the workforce in massive numbers, so we went from most families being single income to most families being dual income. For a very long time, the cost of necessities declined over time and wages increased in terms of real purchasing power. On top of that, the explosion in easily obtained consumer credit in the 60s/70s (especially credit cards) meant that you could spend even more than you earned. So, up until recently most people experienced increasing amounts of disposable income/spending capacity over time.

So, we now live in a time and a place where unrestrained consumer spending has been the norm for generations. Children grow up with that being the norm at home, and when they become adults they do the same thing as well. Those sorts of behaviors don't change/stop overnight.

The AI thing and related themes (like dynamic pricing) is just a new twist that is being used to extract maximum value out of consumers.

Showing 4 of 7 replies

View all replies on Community

Comments

Your comment will be posted after signing in
Join the Conversation

Create an account or sign in to post a comment.

Get This in Your Inbox Every Week

One actionable FI strategy each week — no fluff, no spam. Join 87,000+ readers on the path to financial independence.

  • One actionable strategy per week — optimized for real life
  • Curated links, tools, and community wins
  • Join 87,000+ subscribers — unsubscribe anytime

Free forever — no credit card required

Find Your FI Number

Calculate how much you need — takes 60 seconds.

What could $500/month become in 30 years?

$566,764 — see your number with our free calculator.

Join ChooseFI

Start your financial independence journey
or

No password needed — we'll email you a verification link.

Already have an account?

Don't have an account?

Your data is
secure & private
Join a supportive
FI community
Resources to help
you reach FI

By creating an account, you agree to ChooseFI's Terms of Service and acknowledge our Privacy Policy, including the assumption of risk for in-person events.

ChooseFI community — Save, Invest, Freedom
Try searching for

⌘K to open anytime

Your FI Journey

1/3

Step 1 of 3

How familiar are you with Financial Independence?