I have bought at least 40 pairs of designer jeans over the 20 years I have been working. At about $200 a pair, that’s at least $8,000 worth of jeans. But the real cost of the jeans is when I calculate what I’d make at 7% annual interest over 30 years. The answer is $60,898. Ouch.
You might not buy designer jeans, but you might have a different money vice. Maybe you buy tech gadgets, $5 daily lattes, designer handbags, or cars. The same thinking applies.