How to Spend Your Money Wisely

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You should only spend your money based on how worthwhile you think it is.

If you play a $50 game and you think you'll play it for 500 hours, that's 10 cents an hour. If you wanna buy a $10 shirt that you will wear 500 times, that's 2 cents a wear.

Value is something we're not very good at all. From people driving 10 miles out of their way to save .10 on gas,To the pressures of dating felt when we're indebted by someone else picking up a tab.

Science fiction nerds may be familiar with the “boots theory,” which partially explains why being poor costs so much. The idea comes from the vivid mind of author Terry Pratchett. In the book Men at Arms, part of the Discworld series, one of the characters, Captain Samuel Vimes, offers this simple explanation: The rich are rich because they are in a position to make better financial decisions.

Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.

But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.”

When you can’t afford to take care of basic things, like covering your feet properly, problems snowball from there, and the cost of being poor is compounded.

Once you understand the “boot theory” you see examples of it everywhere. source

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