Spending Calculator - Figures True Cost To Own
When you spend money instead of invest it you choose consumption today over a lifetime of interest income. The total amount of money you spend on consumption plus the forgone interest earnings adds up to the real cost of spending. Warning! This number is much higher than you might expect because of compound interest. Using this calculator encourages thrift and wise spending choices by looking at the lifetime, true cost of a one-time expense today.
Below are a few things to keep in mind:
The True Cost Of Your Spending
You started earning money at the age of 20. After 10 years, have you ever questioned yourself on how did you spend your income for the last 10 years? How are you handing your money? Some might have saved their money and enjoyed seeing their bank accounts grow, while some just spent all their money happily without thinking about their future.
According to research, the way you handle money is based on your family orientation. Meaning, children mirror their parents’ spending habits. But based on the recent studies, money-handling habits are based on training and the money management lessons we learned as kids. Each family is composed of a spender and a saver. Your spending habit is not based on how you were brought up but it is on how you view money. There are some people who think that $10 is a big amount of money while for others it is nothing. Whatever is your view towards money, it is important that you understand the real cost of spending. For example, when you buy a can of cola for $1, the true cost of the cola is not only $1. There are other charges associated with the cost. If you want to find out the true cost of your spending, use the spending calculator.
Curb Your Spending Habit
A compulsive spender is a person who can’t wait to spend his money. With cash in your hand, you can’t resist the urge to spend it without thinking of saving. This is the reason why you don’t even know where your money went and you don’t have any savings in your bank. Before you bury yourself to debt, you should slowly curb your spending habit. But how and when do you start? The time to start cutting on your expenses is now. There are few ways on how to calm your impulses.
What Is Your Spending Habit?
Are you saving enough for your future or are you a compulsive spender? No matter how you view money, it is important that you keep a savings for your future. Review your budget and cut back your unnecessary expenses. The earlier you start saving the better.
Spending Calculator Terms And Definitions
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