Economic discussions on indulgence and investments

24 Mar 2014

Woman: Do you drink beer?

Man: Yes

Woman: How many beers a day?

Man: Usually about 4

Woman: How much do you pay per beer?

Man: 200

Woman: And how long have you been drinking?

Man: About 20 years, I suppose

Woman: So a beer costs 200 and you have 4 beers a day which puts your spending each month at Sh24,000. In one year, it would be approximately 288,000, correct?

Man: Correct

Woman: If in 1 year you spend 288,000, not accounting for inflation, the past 20 years puts your spending at 5,760,000, correct?

Man: Correct

Woman: Do you know that if you didn't drink so much beer that money could have been put in a step-up interest savings account and after accounting for compound interest for the past 20 years, you could have now bought a Range Rover?

Man: Do you drink beer?

Woman: No

Man: What colour is your Range Rover?

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