Budgeting

The Value of $10

Value of $10 image

One of my favorite ways to motivate myself to save is to think about the value of a $10 note.

I am not talking about its monetary value (that’s $10 by the way), but what it is worth to me.

For example: $10 could buy:

  • 6 eggs, 2 Litres of Milk, 5 Bananas, 2 Apples, Box of Rice Puffs and 1 kilo of  Flour (Coles)

OR

  • 2 cups of Coffee (at a Café)

It’s quite a large difference isn’t it?

What about the other way around? What is the monetary value of a Rockmelon?

Coles: $4.50

Woolworths: $3.90

So, $10 could buy me 2.2 Rockmelons at Coles, or 2.5 Rockmelons at Woolworths.

The value of $10 will depend on the time I spend researching the buying potential of that $10.

Important points to remember are:

  • How much time I spend looking for the lowest price will determine (usually) how much money I save
  • As a result, I will pay far more for convenience items (for example: one serving of pre-packaged vegetable soup can range from $4-$10, and to make one serve of vegetable soup at home would cost about 80 cents.
  • In order to meet my savings goals, I must not only decide how much I want to save, but also how much time I want to spend making savings.

Now reflect on the convenience items you buy. Not only the lunch have you bought during the week, but also the times you just accepted one price for an item because you could not be bothered to shop around for other prices.

Think of all the time you spend on Facebook. How much money would you have in your pocket if you spent your Facebook time checking prices and making home cooked meals? I know that videos of cats are funny, but having empty pockets with two weeks to go before pay day isn’t.

That $10 can go a long way – if you take the time to invest it wisely.

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