avatarAldric Chen

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Abstract

</b></p><p id="9ffb">I decided to do the math.</p><p id="dda9">I saw within my direct line of sight and spotted a hairdresser offering the same services at a higher price range. It says 11.80 for a haircut.</p><p id="c318">Simple economics tells me this is a premium service of 8.00 (11.80 — 3.80) over the branch I have always visited. So I seemed to be smart because I saved 8.00 or the same service. Discount mentality, right?</p><p id="de7b">And I started to think about my earnings. I started counting my per hour income. For simplicity, let’s say my earnings per hour is 100.00. For 2 hours, that would be 200.00.</p><p id="3acc"><b><i>Then my mind exploded. How bloody stupid I was!</i></b></p><p id="0275">For every 2 hours that I am not actively working on deals, I will lose 200.00. I was indignant not because I failed to close clients that day.</p><p id="a702">It’s because I lost 2 hours of potential earnings to 2 hours spent on getting a haircut. Therefore, an 8.00 savings resulted in a net opportunity loss of 192.00 (2-hour potential earnings of 200.00 — 8.00 of savings)!</p><p id="d678"><b><i>That means a seemingly smart savings of 8.00 has clouded my judgment, and it resulted in a dumb decision losing 192.00.</i></b></p><div id="3fcd" class="link-block"> <a href="https://readmedium.com/do-you-hate-people-who-talk-money-all-the-time-59989c5eb10a"> <div> <div> <h2>Do You Hate People Who Talk Money All The Time?</h2> <div><h3>I don’t. In fact, I enjoy such conversations</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*Mhk12juI_5q8UI_8wm3_PA.jpeg)"></div> </div> </div> </a> </div><figure id="2da9"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*nV7Y4G3QcmdfUT39TKxIPA.jpeg"><figcaption>Photo by <a href="https://unsplash.com/@jpvalery?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Jp Valery</a> on <a href="https://unsplash.com/s/photos/burn-money?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p id="cfcf">I dropped my phone when I did the math (I was using the calculator app on the phone). It made me feel rather dumb that day, and I couldn’t erase that episode from my memory bank.</p><p id="162a"><b><i>Actually, I shouldn’t. It would remind me not to be silly when it comes to money matters.</i></b></p><p id="7734"><b><i>It will also remind me that cost is one dimension to decision making. The Time Value of Money is another dimension.</i></b></p><p id="f2e2">While it is not intuitive, it does bring a depth of analysis to the way we think about money and time in ways that make sense.</p><p id="db0d">Don’t you think so?</p><p id="df12"><b><i>Being Money-Smart Takes Life Experience,</i></b></p><p id="00a6"><b><i>Aldric</i></b></p><p id="562c"><b>Related Stories from the Author.</b></p><div id="7fcd" class="link-block"> <a href="https://readmedium.com/weekend-musings-on-illumination-to-save-or-to-spend-it-all-depends-2474dc40f7cd"> <div> <div> <h2>Weekend Musings on ILLUMINATION — To Save or To Spend, it all Depends.</h2> <div><h3>We hear the following all the time.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*MMdyHEeBEdx8x7ckVcb8wA.jpeg)"></div> </div> </div> </a> </div><di

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v id="893c" class="link-block"> <a href="https://readmedium.com/monday-reflection-on-illumination-i-had-no-money-so-3caa2fd1458d"> <div> <div> <h2>Monday Reflection on ILLUMINATION: I Had No Money. So?</h2> <div><h3>I grew up with literally nothing.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*Fnhvecqlb5bz5EAr3LsEtQ.jpeg)"></div> </div> </div> </a> </div><div id="e34f" class="link-block"> <a href="https://readmedium.com/wednesday-musings-money-just-what-exactly-is-it-8f5c7469e576"> <div> <div> <h2>Wednesday Musings: Money. Just, What Exactly, Is It?</h2> <div><h3>Let’s face it.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*vx398m830YzTiZLT0GF5XQ.jpeg)"></div> </div> </div> </a> </div><p id="ffe5"><b>About the Author:</b></p><p id="a205">As a content contributor, I write my observations from daily life and my business exposure.</p><p id="b1b6">Because our life experience is the bedrock of our unique perspectives.</p><p id="978a">As a Consultant by training, I believe in making the complex simple.</p><p id="fd09">Because simplicity adds value.</p><p id="314b">And with clarity — We grow.</p><p id="9ff3">Follow me for my stories on Medium!</p><p id="2056"><i>This is more “About Me”.</i></p><div id="c36f" class="link-block"> <a href="https://readmedium.com/an-authors-bio-on-illumination-i-read-and-write-now-i-type-a34452a2e96e"> <div> <div> <h2>An Author’s Bio on ILLUMINATION — I Read and Write. Now, I Type.</h2> <div><h3>I am Aldric and I am a reader.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*CB6DpujrnzNiT8aVDiO5BA.jpeg)"></div> </div> </div> </a> </div><div id="7906" class="link-block"> <a href="https://readmedium.com/confessions-of-an-addicted-reader-i-loved-to-read-before-i-love-to-write-480e48a142fc"> <div> <div> <h2>Confessions of an Addicted Reader: I Loved to Read before I Love to Write.</h2> <div><h3>I am a reader first, writer second.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*7R9BS3Anf2HZfZMTrCjsyA.jpeg)"></div> </div> </div> </a> </div><div id="cc12" class="link-block"> <a href="https://readmedium.com/j29creative-submission-requirements-1e10752fa91c"> <div> <div> <h2>J29Creative Submission Requirements.</h2> <div><h3>Open for Contribution — September 17th 2020.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*IoqhqksPyD4jW8UezzuXdQ.jpeg)"></div> </div> </div> </a> </div><p id="b0af"><b>Do reach out and say hi on <a href="https://www.linkedin.com/in/connect-with-aldric/">Linkedin</a>!</b></p></article></body>

I Saved $8 And Lost $192.

There is a difference between FEELING intelligent and ACTUALLY being intelligent

Photo by Annie Spratt on Unsplash

There are times when I am baffled. We can be incredibly intelligent and silly at once. How is that possible? Let me share a story of recent memory.

I was looking into the mirror after bathing one fateful morning, and I realized that my hair is out of shape. I mean, there is literally a bowl at the top of my head.

So, I decided to make a trip to the hairdresser.

I have a franchise brand I visit monthly, and I bought a package from them. The one-off pricing for a pure haircut for the walk-in customer is $4.00. The package I have with them is $38.00 for 10 haircut visits, which brings the haircut cost per session down from $4.00 to $3.80.

I save $0.20 per visit. I thought I was a bloody genius when I swiped my card months back.

And so I went to the branch I have always patronized. For some reason I never understood, that branch was packed with customers queuing to groom themselves.

I counted the heads in front of me. There are 5 of them. Then I counted the heads that are being serviced. There are 2 of them. I decided to wait as I (naivety at full scale) believed it would be my turn in an hour.

How stupid I was. The wait was 2 hours.

Although I did clear my work while waiting, took Zoom calls in between, and also wrote story drafts for Medium in between — It was not a good use of my time.

That’s because I could only be productive at administrative matters while stuck in one location. And for me to get my haircut, I had to push back 2 sales appointments. Delay kills sales. Protracted delay kills big deals.

2 hours later, I had a fresh cut and looked sharp. However, it left a distaste in my mouth. I felt that something was terribly wrong and amiss.

I decided to do the math.

I saw within my direct line of sight and spotted a hairdresser offering the same services at a higher price range. It says $11.80 for a haircut.

Simple economics tells me this is a premium service of $8.00 ($11.80 — $3.80) over the branch I have always visited. So I seemed to be smart because I saved $8.00 or the same service. Discount mentality, right?

And I started to think about my earnings. I started counting my per hour income. For simplicity, let’s say my earnings per hour is $100.00. For 2 hours, that would be $200.00.

Then my mind exploded. How bloody stupid I was!

For every 2 hours that I am not actively working on deals, I will lose $200.00. I was indignant not because I failed to close clients that day.

It’s because I lost 2 hours of potential earnings to 2 hours spent on getting a haircut. Therefore, an $8.00 savings resulted in a net opportunity loss of $192.00 (2-hour potential earnings of $200.00 — $8.00 of savings)!

That means a seemingly smart savings of $8.00 has clouded my judgment, and it resulted in a dumb decision losing $192.00.

Photo by Jp Valery on Unsplash

I dropped my phone when I did the math (I was using the calculator app on the phone). It made me feel rather dumb that day, and I couldn’t erase that episode from my memory bank.

Actually, I shouldn’t. It would remind me not to be silly when it comes to money matters.

It will also remind me that cost is one dimension to decision making. The Time Value of Money is another dimension.

While it is not intuitive, it does bring a depth of analysis to the way we think about money and time in ways that make sense.

Don’t you think so?

Being Money-Smart Takes Life Experience,

Aldric

Related Stories from the Author.

About the Author:

As a content contributor, I write my observations from daily life and my business exposure.

Because our life experience is the bedrock of our unique perspectives.

As a Consultant by training, I believe in making the complex simple.

Because simplicity adds value.

And with clarity — We grow.

Follow me for my stories on Medium!

This is more “About Me”.

Do reach out and say hi on Linkedin!

Personal Development
Money
Thinking
Life Lessons
Self Improvement
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