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**Convenience can be a component **of most any purchase.

Think of all the things that you do that are convenient.

**The challenge is to balance convenience with cost. **

For example Amazon is very convenient

and it has the lowest cost in most cases.

In this course we will learn to apply convenience with value in a way that works for our own unique situation and the specific thing that we are buying.

**To think about convenience, **

**we must first think about what our time is worth.**

Does the time we save with convenience pay for itself or is it costing us a lot more than the convenience that we get.

Examples of the cost of convenience from the car buying blog.

**Time savings **Buying a full price car, it saves time researching better deals. Let us assume that we saved $3,000 off the price of a new car, and that we took 10 hours researching it. So our time was worth $300 an hour. If we make less than $300 an hour on our job, then it was worth it.

**We buy an older car that has depreciated.** So what is the __value of the time we spend making repairs__, that we wouldn’t spend on a new car?

If the new car was $30,000 and the used car is $15,000. So we saved $15,000.

Let's assume that we make 2 repairs each year that cost $300 each for 5 years, or 10 repairs total.

That would be $600 a year, times 5 or $3,000.

We saved $15,000 - $3,000 in repairs, that equals $12,000 savings.

Let us assume that it took 2 hours for each repair, times 10 repairs or 20 hours of our time total.

FINAL CALCULATION

$12,000 in savings divided by 20 hours of our time = $600 an hour.

**Financing Interest **allows you to buy a new car with very little down payment that will need fewer repairs, saving your time.

As of January 2021 interest rates are very low.

Let us assume a more typical interest rate of 7% on a new car loan for 6 years. The total interest is $12,600.

So now the total cost of the car is $42,600.

Is the convenience of financing a new car worth that much to you?

**Status **there's no real time saving with status.

**Buying a house**, The interest on a 30 year loan can be as much as the house is worth. But there are other ways to rethink the core value of a house. We will cover that in a future blog.

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