Thursday 26 January 2012

How much does it really cost?


How much does it really cost?  Most people would say it costs what it says on the tag.  But, what does the item you are looking at buying really cost you and your family? 

If you buy a new 3D television for $1100, what is the actual cost of this purchase over your lifetime?  Let’s see.  First, don’t forget to add the taxes.  So now the television costs $1243 which doesn’t seem too bad or does it?  Second, the average Canadian must earn $1615.19 in pre tax dollars to be able to clear the cost of the TV.  So, if you make $12 an hour you must work 134 hours or 3 1/2 weeks of work to pay for this purchase.  Are you willing to sacrifice almost one month worth of wages to pay for this TV?  Third, if instead of making this purchase you decided to invest the $1615 into an RRSP earning a modest 8% interest.  Do you know after 40 years what you would have accumulated?  That TV you thought only cost you $1243 including tax has actually cost you $35085.  You see, by buying that new TV instead of investing your money you have lost out on over $35000.  To put it in simple terms you would have to work an extra 1 ½ years to make up the money this small TV purchase has cost you.  Now, how long do you think this TV will last?  On average, TV’s will last about 10 years so here we go again.  I did the math for you; so if you buy a new TV every 10 years for 40 years you would have lost out on over $62000 dollars over your lifetime.

I used the example of a TV but I think you get the idea that any purchase that isn’t a necessity, will cost us much more that the price tag actually shows.  I am a firm believer in education.  If you know the actual cost to you and your family over your lifetime on only a small purchase you may think twice before making any purchase you really didn’t need.  By making small sacrifices now, you can’t help but have a bright and prosperous future.  It makes cents to me.

Wednesday 25 January 2012

The key to getting what you want in Life..


Today I want to talk about a word that has left many of our vocabularies.  The word is persistence.   Persistence means:  Refusing to give up or let go or continuing firmly or obstinately in a course of action in spite of difficulty or opposition.  We set our goals, we set up our plan and we start off determined to reach them.  However, most of us, me included, never reach what we are aiming for.  The reason for most of us is we give up too soon.  We lack the unwavering persistence we need to get to where we what to go.  Here is a story of how lack of persistence cost R.U. Darby untold riches.
During the California gold rush a prospector named R. U. Darby helped his uncle mine a vein of gold that his uncle had discovered. It appeared at first that they had a prosperous find. Yet the vein soon disappeared, and Darby and his uncle searched frantically for the spot where it continued. Finally, they concluded their prospects were hopeless and sold their equipment to a junk dealer.  The junk dealer consulted an engineer, and then began mining the shaft again. He quickly discovered the elusive vein and a supply of gold worth millions of dollars--just three feet from where Darby and his uncle had stopped digging.
How close were you to your goal when you finally gave up?  Are you like R.U. Darby just three feet away?  I think the moral of the story is to never give up.  If it’s a goal worth reaching then it’s a goal worth never giving up on.  If we all had a never ending type of persistence just imagine all the things we could accomplish.  So start using this word “persistence” again, in your vocabulary and your life and be all that you can be!  It makes cents to me.