SHOULD I BUY THIS?
AMental Accounting Trick to Measure Cost
Whenever a person makes a purchase, they have to answer a simple question: Is it worth it? While the market does the job of setting prices and determining one type of value, a purchase’s worth to you will depend on your financial situation. We pay for everything in the same dollars, but those dollars signify different things to different people. One easy way to assess whether or not you should make a purchase is to convert dollars into work hours.
week of the year) and then again by 40 (for each hour of a typical work week) and you get roughly $36 per hour worked. Thinking about money this way ties it to something tangible, rather than being purely abstract. It also accounts for the fact that purchasing power depends on personal income. If a fancy meal represents 10 work hours to you, you may want to dine out less than if it only counts for half that. While this is one way to think about the value of a dollar, it’s far from the only one. Nobel Prize-winning economist Richard Thaler coined the term “mental accounting” to describe the way we categorize our economic decisions. Mental accounting helps explain why we’re more likely to spend birthday money rather than a hard-earned paycheck on an extravagance. It also elucidates why people tend to save more when they stick to a prescribed budget. When you think of $300 per month as your food budget rather than just money, you’re much more likely to spend it how you intend to. From a purely market-centric perspective, every dollar is worth the same. The problem with that thinking is that none of us live in the markets. We live in the real world, where our lives and finances are intrinsically linked. So next time you’re faced with a tough buying decision, don’t ask, “Is it worth it?” Ask, “Is it worth it to me ?”
For the sake of easy math, let’s say you make $100,000 per year. Once Uncle Sam takes his cut, you net around $75,000. Divide that number by 52 (for each
Chris’ Paleo Corner:
ROASTED TURMERIC CAULIFLOWER
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When it comes to eating paleo, side dishes are almost always a bigger challenge than mains. If you’re in need of a flavorful vegetable dish, check out this recipe for spicy, savory cauliflower.
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INGREDIENTS
DIRECTIONS
1. Heat oven to 400 F. 2. In a large mixing bowl, whisk together coconut oil, spices, garlic, and water. 3. Lay cauliflower across a large baking sheet, season with salt and pepper, and top with mixture. 4. Roast for 30 minutes, garnish with basil, and serve.
• 1 head cauliflower, cut into florets • 2 tablespoons coconut oil • 1 teaspoon turmeric • 1/2 teaspoon cumin • 1/2 teaspoon crushed red pepper • 1 clove garlic, minced • 2 tablespoons water • Chopped fresh basil, to garnish
Carrie Akin Heather Jackson Donald Milner
Inspired by PaleoHacks
888-390-4360 • 3
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