Mar 31, 2015
One of the challenges of personal finance math is the relevance of a particular scale. Sometimes you can get a massive benefit by switching to a different scale.
One famous example is the daily latte. $4 for a latte sounds about right in today's world. But if you do it every day, it adds up. To fully appreciate the impact of the seemingly small expenditure you can change the scale from daily to annual.
$4/day x 5 days per week x 52 weeks per year is $1,040/year spent on coffee. That's a lot of money!
If you're scared that I'm trying to take away your latte, don't be. I'm not! But I do want you to use and apply that tactic to the actual numbers from your financial life.
In today's show:
Enjoy the show!
Joshua
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