Example 3: Should I buy this dishwasher?
I don't like to cook, but I want to buy a dishwasher, and I don't know if it's cost-effective or not.
Open TimeTrack "cook" time and verify as follows.
Assuming a dishwasher costs $2,000, I sift through the monthly pivot table for the ≈20 hours I spend on "washing dishes".
With $2000/year spent on "dishwashing" (20h), you get.
When the $2,000 dishwasher is bought back for only one year, it pays $100/hour, $50/hour the second year, and $33/hour the third year.
That's when the decision is simplified to "Are you willing to buy your time for $100 an hour?" Then consider whether to rent the house, the life of the dishwasher and so on, calculate the cost before starting, the idea will be much clearer.
By the same token we can judge how much to buy the right phone, why would someone buy an $8,000 phone and not feel expensive?
Assuming a per capita mobile phone usage time of 4 hours per day, a mobile phone is paid 2 yuan per hour, if a mobile phone can be used for 2 years, then the cost to the user should be 5840 yuan (24365*2=5840).
Now can you understand why anyone would want to buy an $8,000 phone? Because even at $8,000, the hourly rate paid for a cell phone is only $2.70/hour! It's too small a deal compared to the money they make with their phones.