“Return on investment is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.”

Thanks Investopedia 🤓

The concept of ROI is simple –

but it’s really the implications that are fascinating. For example…

“I wore this dress once but that’s ok, it only cost me $20.”😅

Compared to…

“I wore this dress once and I spent $200.” 😟

It’s so much easier to accept mediocre returns when the initial outlay is small. Hence why you are more likely to impulse purchase clothing & beauty products, then say, a car.

So how can one make better decisions when it comes to maximising ROI, especially for small purchases?

Continue reading “ROI”

What is the point of budgeting?

Budgeting comes up as one of the ‘must do’ items if you want to be good with money. You must have a budget. You must stick to a budget. Whatever your budget of choice, there’s a zero based budget, a 50:30:20 budget, a 74:26 budget (really, in case you couldn’t tell, you can have any type of budget you want…).

But what problem does budgeting actually solve? 🤷🏻‍♀️

Continue reading “What is the point of budgeting?”