Friday, November 20, 2009

The Simple Dollar » Selling My Future, One Dollar At A Time

We can generate a rule of thumb for this. I think the guy is nuts wrt to 10%, of course, but in his world, every dollar he saves comes back five-fold if he invests it instead. So as he shops he can look at the real cost of every thing he wants. The ten buck DVD is really 50 bucks in opp'y costs. We can work out a metric like this for gold and silver. Hey, pick your own metric based on your predictions about the stock market and gold and inflation. Either way, having a "multiple in mind" while you fondle the merch is probably a great tool to aid investing versus splurging with your earnings. (Hey Mike--I can't even call it "money" any more!)

Link: The Simple Dollar » Selling My Future, One Dollar At A Time