The Problem with Subscriptions

Subscriptions are unlimited. They can be used 24/7 or not at all and the price is the same. Life on the other hand only has 24 hours in a day and 168 hours in a week. With sleep and work taking up most of our time we are normally left with just a few hours in the evening for our unlimited subscriptions. I personally have around 2 hours each night to pick an activity or subscription. Whether it be Netflix, Disney plus, Amazon Prime, Crave, or even work out apps Down Dog, Peloton, CENTR and Apple Fitness. You can only use 1 at a time and you only have limited time to use them. Some subscriptions can be used while doing other things like music apps (Spotify and Apple music) so there is a bit more opportunity to get your money’s worth but most are single use.

 

True Value of Money

Money is only worth what you can purchase with it. Money is worthless unless you spend it. Its value lies in what it can be exchanged for. If someone gave you a million dollars but under a condition you could never spend the money, it would be completely worthless. Maybe you could fold it into purses or clothes like they do in Venezuela, but it most likely will be of no use to you. (Consumer price inflation in Venezuela averaged 9,032.8% in the ten years to 2022 making the cash more valuable as a material then a currency)

Financial Literacy Test

I recently was watching a Vox video on YouTube and it discussed a three question quiz on Financial Literacy. https://www.youtube.com/watch?v=0uvurQcj0fs

Treat Yourself and Night Guy

 

Treat Yourself

There is a classic scene from Parks and Rec where the characters Danna and Tom once a year spend a day treating themselves. They buy clothes, fragrances, massages, mimosas and fine leather goods. It's the best day of the year for them. We all love to treat ourselves from time to time, which is actually good and healthy, but sometimes we like to treat ourselves all year long with food delivery, clothes, and expensive drinks. We want a life of luxury, all the time, which costs a lot of money. Money is to be enjoyed and we never know how much time we have, but there is a trade off each time we spurge. We could be costing ourselves more money than we realize.

Why 6% + 6% Doesn’t Equal 12%: The Truth About Compounding Interest

Interest

Ever since I was a child I have found interest to be fascinating. Gaining money passively without any work is quite the concept but calculating the value of interest can be quite confusing to many since it's not simple adding. Compounding interest makes calculating value even more difficult to deduce and measure since differences between interest rates get stretched and exaggerated over time.