Calculations Explained
ASSUMPTIONS
#1 E.T. Phone Home
#2 Smoking is Such a Drag
#3 DVD + Bluray = DUMB
#4 The Big Gulp
Average lifetime of person is 79 years. We subtract 18 years because we consider an 18 year old old enough to be buck raked and financially independent. Therefore, most lifetime calculations are based on 61 years.
$40 x 12 months = $480 per year
$40 x 12 months x 5 years = $2,400 in 5 years
$40 x 12 months x 61 years = $29,280 for life
Total Saved: $29,280
Cost of Cigarrettes
Average cost of cigarettes is $5.51.
Average lifetime of a smoker is 14 years less, ie, you will die at 65.
$5.51 x 365 days = $2,011 for 1 year
$5.51 x 365 days x 5 years = $10,056 for 5 years
$5.51 x 365 days x 61 years = $122,680 for life
$5.51 x 365 days x (61-14 = 47 years) = $94,524 for life factoring in shorter lifespan of 14 years.
Here we are really being conservative, only counting the cost from 18 on upwards, although 90% of smokers start smoking younger than 18. However, they may not be paying for the smokes at that early age!
Heath Insurance
USA Today reports that it costs $462 more to insure a smoker.
$462 x 47 years (see above) = $21,714
$94,524 for cigarrettes + $21,714 for health insurance = $116,238 for life.
Total Saved: $29,280 + $116,238 = $145,518
#3 DVD’s are Dumb and Dumber
Average of 114 DVD’s per household.
2007 Price of a DVD is $22.11.
114 x $22.11 = $2,521
$22.11 x 4,000 = $88,440
$22.11 x 17,428 = $385,333
Total Saved: $2,521 + $145,518 = $148,039
# 4 The Big Gulp
Americans eat out 4-5 times per week. More specifically, 75% of Americans eat fast food 3 times a week, and 1 out of 8 Americans eat fast food every day.
“Super-sizing” a regular soda can add over 450 calories and 35 teaspoons of sugar! Even though upgrading to a super-size many only cost an additional $.50, those two quarters are buying you almost twice the calories.
Answer: Al got medium, Beth got small, and Cynthia got large. You know that Beth didn’t want large, so she could have gotten small or medium. But you know that someone else wanted medium, so Beth had to get the small drink.
You also know who got the medium-sized drink — it had to be Al, because he was the only boy in the group. That means the large drink was for Cynthia.
The average cost of a small drink is $.99, and the average size of a large drink is $1.89
4.5 (times you eat out) x $.89 (savings of small drink) x 52 (weeks) x 61 (lifetime) = $12,704.
Total Saved: $12,704 + $148,039 = $160,743
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