I read this recently and it makes total sense so I decided to share it:
When dealing with large purchases, don’t think about the cost. Instead think about what you are giving up by spending that money.
It’s one thing to say, well this car is $40,000, it’s another to think I could fly to Germany and take a month off work while immersing myself in another language/culture and still come out ahead not buying the car. If you follow happiness research, you’ll know that paying for experiences is much more rewarding than paying for Stuff. No one cares about your Xbox. The time you met that famous rock star is much more compelling.
Germany, here I come!
Or how about this: that car means I have to work an extra year (assuming you make around 70k, which is more than most Americans for sure), and that means if I get a new car every 5 years, If i’m 30 and I want to retire at 65, instead I will have to retire at 72.
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