Updated: Mar 3
It goes without saying that the impact of the Coronavirus will and has changed many lives for years to come.
With no pun intended Cindy and I decided that we would not go back to the local gym and we decided to purchase the MIRROR exercise machine.
We paid $1,295 on Cyber Monday plus $78 in tax for a total $1,373.
In addition, there is a $39 monthly fee for the service.
The cost for the gym is $30 a piece or $60 per month plus a $150 annual fee.
So this is where personal finance comes into play for you hard core budgeters out there.
What I’m referring to here is the break-even point on a lighter scale than what is used in business where the investment in a new product pays for itself over the current product or solution.
Cost Comparison Between the Products
So let’s break it down using a month-to-month comparison:
The monthly cost for the MIRROR is $39 for the service and $38 to pay for the machine and it would take three years to pay it off.
Over the course of time the total spend for both items is $2,777.
If we’d stayed gym members our total cost would have been $2,610. With the difference at $167, it would take roughly 39 months where the cost of the MIRROR is at the break even point.
Where Money is Saved
At this juncture disposable income increases. At month 40, the average monthly cost for the gym factoring the annual fee is $73 (rounded up) and the MIRROR is $39 and this equates to an additional $34 going back to the monthly budget.
Personal Finance Standouts
What makes successful personal finance managers are those that have discipline and especially those willing to put in the work.
So the question becomes . . . Is saving $34 going to make a huge impact on the budget? No; however, $34 can pay for a night at the movies, or your monthly cost for Netflix, Apple TV, Hulu and a box and popcorn every month.
The point is, if you do the homework for all products and services that are purchased, the money begins to add up. It also proves that it is not necessarily how much you have rather how much you spend.
As for Cindy and I, we made a specific decision: We didn’t sacrifice quality with the MIRROR and we have a few more bucks in our pocket. So this a win-win.