Monday, November 10, 2014

Cost

I just posted about the Raspberry Pi A+ and the last quote was about how much the A+ cost in terms of Starbucks coffee. I've used the same metric for thinking about buying an app on my phone. My stream of consciousness led me to the latte factor next. Which then got me thinking and I realized the Starbucks comparison does not include a key factor - time.

I'm cheap, so the following may not surprise anyone... I'm going to start thinking about the Starbucks comparison this way - using a few assumptions:

A cup of Starbucks is $4.
My average annual rate of return over the long term is 6%.
I have twenty years until I retire.

That means the Raspberry Pi A+ that is "the cost of 4 Starbucks coffees" with my calculations will cost: $52.

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