02/01/2026
In regard to your everyday spending it's important to understand the difference in spending on a consumable versus spending on a durable asset. Spending $200 on cologne is not the same as spending $200 toolbox for your truck. The cologne is finite and once its gone all of $200 value is gone. The toolbox retains value, although it depreciates, it can still be sold later to recoup a percentage of the original cost. So the true cost of the cologne is $200, the true cost of the toolbox is $200 minus resale value. So maybe the true cost of the toolbox is only $50 ?
From a short term cash flow perspective they are both $200, from a long term value perspective, the cologne costs more because once its gone its gone.
Think about food, toiletries, cleaning supplies, gas, diapers, wipes, etc. Its very important you get the best deal on these you can. They are all consumables, with no resale value.