I’m in Target. My cart is loaded down with cute new organizers for my office. They’re blue and match my bulletin board perfectly.
And they’re on clearance.
Of course I’m going to buy them.
As I’m standing in line I idly wonder as I browse Pinterest, what my total will be. So I start adding it up: $38.94. Not too shabby for organizing bins from target, but still.
That nagging voice in the back of my head says I don’t need to buy them. I have shelves that work just fine.
No, they’re not as pretty.
But they’re functional.
But I still REALLY want to buy them.
One more cart in front of me, and I’m torn.
So I open an investment calculator up on my phone. What if I walked away from buying these today, and instead invested that $38.94?
At 7% interest, after 10 years, we’re looking at $76.00
Still want to buy them – $76 isn’t really that much money.
After 20 years, we’re looking at $150.69
20 years is a freaking long ways away.
After 40 years, it will be $583.14
I whip my cart around, “Excuse me’s” all around to those behind me in line.
I admit, I lie and say – “I forgot something”
Yeah, I’m not spending that money.
How can you apply this?
Download a compound interest app:
There are many free options available, and quite frankly, any of them will work. Simply plug in the amount of your purchase, a 7% interest rate, and how many years. I suggest using 40 years to get the maximum impact.
Would doing this help deter your from making a purchase? Have you ever tried something like this?
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