In this Livestream, we go into more depth on our lesson on amortizing purchases and calculating cumulative value to ensure responsible spending and making smarter purchases.
Below are a few of the topics we cover:
- Monthly expenses vs one-time purchases
- Shifting from a “single expense" mindset to a “cumulative value” mindset using amortization
- Example: refrigerators are expensive, but on a monthly basis, they are a great deal
- We're better at grasping monthly payments than single expenses
- Amortizing expenses using life of the item vs amortizing expenses through frequency of use
- Renting vs buying items: when does it makes sense to buy? Where is the breakeven point?
- Tradeoffs of renting or leasing vs buying items
- How gym memberships are profitable for gyms (proving we aren't good at calculating cost over time)
- Using your personal context to calculate your cumulative value and make responsible spending decisions
Happy Wealth Staking!