Episode 184

full
Published on:

10th Apr 2023

The Difference Between Price and Cost

We often get caught up in the idea of making big purchases without fully considering the costs associated with them.

In this episode we will explore the difference between price and cost through a conversation with my 15-year-old daughter about buying a car. While my daughter was focused on the price of the car and how to pay for it, I wanted to highlight the additional costs associated with owning a car, such as insurance, maintenance, and the cost of time spent away from other important activities. Understanding the difference between price and cost can also be applied to other significant purchases, such as buying a home. 

As the summer approaches and people begin to explore new purchases, it is crucial to fully consider the cost of ownership before making any large financial decisions.

Key Points:

[01:25] #1 Calculation of cost of owning a car

[04:27] #2 Illustration of buying a $500,000 home

[06:15] #3 Importance of accounting for all costs associated with a purchase

[07:06] #4 Trade-offs when making a financial decision

If you loved this episode, you have to listen to these episodes as well: 

>> Life Planning: Looking Beyond Finances with George Kinder

>> Motivation vs Commitment

>> Success for Minority Teens with Carlos Gomez

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Want to chat with a fee-only financial planner? Shoot me an email at emlen@minoritymoneypodcast.com I Can't wait to meet you.

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About the Podcast

Minority Money
Changing the Complexion of Wealth
The Minority Money Podcast is about finance, family, fitness/health, and education and how all of these things affect your overall wealth.

About your host

Profile picture for Emlen Miles-Mattingly

Emlen Miles-Mattingly

Emlen Miles-Mattingly is the CEO and founder of Gen Next Wealth. He spends much of his waking day striving to bring more value to the table for his clients, with the goal of helping them align their money with their values. Ultimately working with clients to make a lifetime of smart decisions with their resources.
With nearly 19 years of experience in the financial services industry, he decided to leave the large corporations and start his own independent firm. It is his passion to keep the client's best interest in mind when making recommendations. Everyday Emlen wakes up knowing he has an opportunity to learn something new and is excited to share what he has discovered with people in need of it. He has a bachelor’s in business administration and is currently enrolled in coursework to obtain the CERTIFIED FINANCIAL PLANNER designation.
Emlen was born and raised in the small town of Madera, CA this is also where the firm is located. He is married to Maricela and they have 4 children Jada, Mia, Emlen II, and Ecella. We have a very active life, we enjoy working out, hiking, craft beer and escaping to the coast whenever possible.