For a while now I have been pondering a decent equation for working out an item's value for money. It is hard to quantify whether something is worth what you are paying for it. It is also a subjective thing, what is it worth to you.
I decided therefore to come up with an equation to work it out, and here it is:
(D + (P/2) * E) / C
Duration – amount of time to be spent with/doing the item in hours
Prep – time spent enjoying the idea of the item or raving about it afterwards
Enjoyment – How much you enjoy the item out of 20 (20 is best)
Cost – Cost in pounds sterling
Here are a couple of examples:
Lord of the Rings – 3hrs + 0 = 3hrs; 3hrs * 16 = 48; 48/12 (cost £12)=4
Karting – 0.5hrs + (10hrs/2) = 5.5hrs; 5.5hrs * 20 = 110; 110/30 = 3.66
Therefore watching Lord of the Rings is better Value for Money than Karting…
It works for most things, people are better than commodities (helped because you spend more time with them and hopefully enjoy them more).
For things like insurance and bills you can rename enjoyment as usefulness and use the same formula… Obviously free things are great value for money…