Millionaires habitually envision their monetary transactions in terms of ten-dollar bills due to the relative insignificance of that amount compared to their substantial wealth.
Here's a rewritten version of the article keeping the tone informal, adding relevant insights from the enrichment data, and structuring the paragraphs for clarity and readability:
Cooking Up Savings: The Hidden Costs of Food Delivery Services
Hey there, it's me, Nicolas Bérubé. On a rainy Sunday, I cooked up a storm, and it got me thinking — $10, isn't that a crazy amount of money?
The pot overflowing with chili I made cost around $10. It's about 5 dinners for one person, or 10 breakfasts with coffee, bread, peanut butter, and banana. Baking my own bread, using Mark Bittman's recipe, gives me a dozen loaves, enough for a month for our household, costing just 75 cents a loaf. So, you see, that $10 made me feel rich!
Now, you might think I'm always crunching numbers. But it's the small, efficient habits that make us happier and healthier. It's only later that we realize their financial advantages.
What made me think more about all this was a dossier published in La Presse Affaires last week on the costs of food delivery services like Uber Eats. These services are like an overly eager friend who's always ready with a dish whenever you're craving something. But the reality is, dozens of dollars can vanish each week without you even noticing.
It's a trap. We tend to believe that becoming rich requires external factors and big money. We tell ourselves that a higher salary or a big year-end bonus would do the trick. But the truth is, becoming rich is a decision under our control, and it has little to do with big money. Most millionaires didn't get rich with a $10,000 or $15,000 boost. They made decisions worth $10.
The problem is, our brains have a hard time connecting small and large amounts. Uber Eats is a small amount. Being rich is a big one. So, we feel we're in different galaxies.
But, we're not. Spending $50 a week on Uber Eats adds up to $37,600 in a decade when you consider the 752 rule, which helps you see how much an investment grows at an annual compounded return of 7%. For a couple, that's $75,000 every ten years. Over an active life that stretches from 20 to 65 years old, it amounts to $795,000 per person or over $1,500,000 for a couple. That's a pretty significant difference, even calculating a long-term return of 6%.
Questions about the basic principles of wealth aren't usually taught in school, passed down at home, or advertised. In contrast, food delivery services are everywhere and make using them feel "normal." If you're already rich, ordering in every now and then won't make a dent in your finances. But if you're working towards financial progress, it's a habit that can take you further away from your goal than you think.
These lessons were learned and shared by financial blogger Peter Adeney, popularly known as Mr. Money Mustache, over a decade ago. He reminds us that long-term health and financial freedom often come from simple, but counterintuitive short-term choices. For example, skipping that first restaurant meal or first bottle of wine if you don't already have a good bike and a bike trailer for your kids, grocery shopping, and other errands is a smarter choice. Paying off your house before buying a luxury vehicle or gadgets is another financial decision in the right order.
But we often do the opposite. We line up our financial decisions in the wrong order, ensuring we pay high interest rates throughout our lives, hand over a significant portion of our income to others, and delay the time when our investments start working harder for us.
So, remember: $10 isn't a small amount. It's a stepping stone towards financial freedom. Don't let it slip away on convenience food.
- Integrating simple, cost-effective habits into our lifestyle, such as baking our own bread instead of ordering food delivery services, can significantly contribute to personal-finance and overall well-being.
- Uber Eats and similar food-and-drink delivery services may seem like minimal costs, but the accumulated expense over time can have a significant impact on one's personal-finance and long-term wealth, especially when considering the 752 rule.
- Many micropayments, like food delivery costs, can add up to substantial amounts over time, making a noticeable impact on one's personal-finance and ability to achieve financial freedom.
- The business of food-and-drink delivery services has grown but so has the importance of educating individuals about the hidden costs involved and the impact on their personal-finance and long-term wealth.
- Financial experts often stress the importance of making counterintuitive, short-term decisions for long-term health and financial freedom, such as prioritizing paying off debts over purchasing luxury items or choosing to cook at home instead of ordering in to save costs.
