Sunday, October 21, 2007

Buying Value

Do you have a favorite pair of jeans, which you cannot do without? Or maybe a favorite shirt, a piece of furniture you really enjoy, an electronic gadget you cannot live without … you get the drift.

And then there is a new but unused shirt, which was on sale, but I have never worn. Or the spur of the moment bicycle I bought but rode twice before it became a permanent fixture on the garage wall. And let’s not talk about the various exercise equipment I have collected over time and the various memberships I have.

Buying is an emotional act and the more we fall for the advertising, the more we may buy things we don’t need. After making numerous purchasing mistakes over the years, I have learnt my lesson – buy value.

Know what you want – That is the first component of buying value. If you don’t know what you want then you are more susceptible to falling for glossy marketing or a cheap bargain. Do your research, understand your options and price points in advance.

You get what you pay for – If you are going to use an item for a while – it makes sense to invest some money in buying a better brand or product. Quality makes a difference and buying better quality may be more expensive but it is usually worth the price.

Learn from your mistakes – Review your buying habits and previous purchases to understand how you shop. Understand what has worked for you in the past and what are the purchasing mistakes you don’t want to make in the future.

When you buy value – it’s emotionally satisfying, financially smart and less stressful.

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Patrick said...

Great article. I have "bought that shirt on sale" more than a few times. In fact, I just donated a box of them to GoodWill. I've made a point in the last couple years to make sure I buy what I like and what I need. It makes a big difference in the pocketbook, but it also leaves me with much less clutter!

The Dividend Guy said...

Good post - I have had some stocks in the past that would qualify within the context of this post.