Learn to look at the real cost of what you’re buying.

[Edit]: Sit tight while I reformat this. Reddit isn’t being nice this morning.Learn to calculate expenses over at least 5 yearsExamples:$500k Mortgage 5 year fixed rate mortgage with 25 years amortization, accelerated by-weekly payments: – 1.79% = $826.77 – 1.60% = 808.8 You’re thinking, $17.97 difference, that’s trivial. But, that’s over 130 payments which is $2336.10 and I know you’d rather have that in your pocket than the bank’s!Cell Phone Plans: – 15GB/mo All inclusive for $65/mo – $10GB/mo All inclusive for $50/moThat’s a $15/mo difference, $16.95 after you add 13% tax. Over 60 months this means $1017. I know contracts usually run 24 months but you’re more likely to stay at the same price or higher unless you’re relentless about calling them for discounts.Netflix – $9.99 vs. $14.99 vs $18.99. – Over 5 years this is $599.40 vs. $899.40 vs. $1139.40 so you pay an extra $300 to $540. If you don’t need the top tier, don’t pay for it.Starbucks Coffee Daily for Two (Grande/Medium)(You’ve seen this one before!) – $5.99, taxes in. Let’s take 252 work days minus 20 for vacation etc, leaving you with 232 x $5.99 x 5 years = $6948.40 ~Holy Shit!~ – $8.93 for two Venti Americanos = $10358.80 – $10.74 for two Grande Cappuccinos = $12458.40If Starbucks was selling $12458.80, five year memberships, for two Cappuccinos every week day, would you sign up? What if they told you it’s only $207.65 a month?Now let’s compare it to the expensive gourmet shit by the pound. – Sumatra Mandheling, 1lb $13.46 per week, NO TAX.This is considered groceries. – A pot of coffee is a bit larger than two grande from Starbucks. – $13.46 x 52 weeks x 5 years = $3499.60I’m as much a creature of comfort as the next guy/gal. It’s okay to spend $12.4k on coffee if that’s the shit you love and it makes you happy. This is just one tool to add to your toolbox. via /r/PersonalFinanceCanada https://ift.tt/3tBAQdq