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Some people, it seems, in spite of all the consumer education and common sense in the world, will still have irrational tendencies. Especially when it comes to money.

They’re the type who would happily scrimp as much money as they can get their hands on and hide it under their pillow. Cash is king. So to speak. Even if its at the opportunity cost of something worth more.

Take X. X has 2 options, a salary raise, or a brand new company car. Even the lousiest new car is going to cost at least $400/ month in installments. But no, X wants a measly raise of $300/mnth. Which works out to just a $260/mnth after our paternalistic government’s intervention. Instead of something that would have been worth at least $400 /mnth. Why? Is there an intrinsic value with holding more cash in hand only to spend it away? Maybe. Who knows….

Of course liquidity is best. But is it worth sacrificing something potentially worth 30% more in value just for the sake of liquidity? How about the time value of money? Ah…. X didn’t consider that having more of a lesser amount’s worth of cash on hand rather than in kind means more depreciation on X’s hands…..

Well…. I’m done ranting… heh

And btw, X would rather make 3 people take public transport that comes once every 20min and takes a long snaking half an hour route for a 10 minute commute by car because X is too…. lazy to drive.

Journey by public transport:
83 cents x 3 = $2.49 x 2 trips = $4.98.

Journey by car:
Shortest route (one-way) = 4.37 km (5 km after generous allowance)
So, travel 10km at a conservative fuel consumption of 13km/litre (my car’s average is usually 16km/litre) = 0.78 litres of petrol
0.78 litres x current price of petrol @ $1.30/litre = $1.00
So, $1 petrol + $2 parking (assume we stay 2 hours there) = Grand total cost=$3

Time saved: Priceless

Sorry. I just had to do it. Hah. Hah. Hah.

Categories: Random
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