//Rate Your Purchase

Are you getting the most bang for your buck? With ads and sales everywhere, it’s not always easy to know how to spend your cash. One way is to figure out how much something would cost each time you use it. This is called, “rating your purchase,” and it’s easy to do. Simply calculate your Cost Per Use (CPU) and see for yourself.

Here are some examples:

Example 1: A new pair of jeans
Cost: $50
Usage: 2 times a week for 1 year = 104 times
CPU (cost ÷ usage):  $0.48

Example 2: A new video game
Cost: $60
Usage: 5 times a week for 1 month = 20 times
CPU (cost ÷ usage):  $3.00

If your CPU equals:

$0.00 to  $0.50 = Great bargain
$0.51 to $2.50 = Pretty useful
$2.51 to $10.00 = Weigh your options
$10.01 to $25.00 = Are you kidding?
$25.01 + = Special occasion only, like prom or graduation

Now it’s your turn:

Next time you’re trying to decide if you should buy something, calculate the CPU to see if you’re getting the best value for your money.