We know the importance of purchasing power in your life and we want you to have a better purchasing power to get all the necessities important to you thats why we give you tips on increasing your purchasing power via spending money wisely.
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| Purchasing power |
Determine the value of products you use
It doesn’t matter what others determine the value of a product or service to be. It matters only what the value of the product or service and its use is to you. It is imperative that you don’t give in to the very illogical peer pressure of purchasing only the best product all the time.
Let us give you an example : Think of your footwear. You spend money buying good running sneakers because you run normally few miles every day.
You make sure they are comfortable and can handle everyday usage. However, since you rarely need to wear shoes, you purchase inexpensive ones that look nice for the rare occasion you need them.
In both the cases, you don’t care about the value of brand name. You are purchasing what is basically important to you regardless of the name. Remember, this is you.
In both the cases, you don’t care about the value of brand name. You are purchasing what is basically important to you regardless of the name. Remember, this is you.
This may not be the same case for you if you dont act wisely and dont respect the value of your money and you are in no control of your spending habit.
Brand name may be a very important factor for you in shoes—if you’re wearing them for a special occasion and you basically want them to “say something about you.” Just remember, there is a high cost that comes with the brand name.
Brand name may be a very important factor for you in shoes—if you’re wearing them for a special occasion and you basically want them to “say something about you.” Just remember, there is a high cost that comes with the brand name.
You can’t have the best brand and the most expensive brand of every product unless you are crazy rich. You need to make your money purchase which is according to your budget and that which make sense to you.
When it comes to service, goods and other things in life, use the same principle. Let use an example of two totally unrelated services here: haircuts and basic computer repair service.
When it comes to service, goods and other things in life, use the same principle. Let use an example of two totally unrelated services here: haircuts and basic computer repair service.
If you get the most inexpensive haircut possible because you have a simple short cut that doesn’t need anything special done to it. You probably save good amount of money in haircut expenses annually.
However,whenever your home computers need repair , you pay a premium high cost amount to have the best service. While it costs you more money than the average service, you know it saves your money in the long run.
Our financial perspective is that anything of high purchased money value and high importance to you (like a computer, Tv, fridge etc) needs to be serviced by the best possible service company within your basic budget.
Our financial perspective is that anything of high purchased money value and high importance to you (like a computer, Tv, fridge etc) needs to be serviced by the best possible service company within your basic budget.
History has shown all of us that money spent on service saves you significant amount of money time and stress.
We hope what you’ve learned from this principle and you will use it as it is to understand your own purchasing value system.
We hope what you’ve learned from this principle and you will use it as it is to understand your own purchasing value system.
What is important to you may not be very important to someone else. Whatever your product and service values are, understand them and spend your money on them with proper thinking.
What do we basically mean by this? As a young adult, you often purchase something very un-useful because you just have to have it.
Purchase the only luxuries that are important to you
What do we basically mean by this? As a young adult, you often purchase something very un-useful because you just have to have it.
Someone else has it or it’s the latest and the very greatest item. Manufacturers and marketers are just making you but things that make their money by quickly making products obsolete and by using high end persuasive advertising to persuade you that you need a new product now as it is the most important thing to have.
Analyze your basic purchase behavior. If you’re constantly buying unnecessary new products while the old product is still useful and very functional, then look to prioritize which new items you truly need. So the new laptop looks “cooler”and has more sexy features.
Well, if your old one holds almost similar features and you have only two or three features on new one, then you probably don’t need to buy the new laptop and it is just the same with every product.
An example on a larger scale is your first couple of car purchases. You may feel that you deserve a good car with all the amazing system bells and whistles, and the car salesman will definitely tell you about why they are all so very important and will make you buy it as that is his job. Think about how much the extra-wide wheels will matter to you a month from now.
An example on a larger scale is your first couple of car purchases. You may feel that you deserve a good car with all the amazing system bells and whistles, and the car salesman will definitely tell you about why they are all so very important and will make you buy it as that is his job. Think about how much the extra-wide wheels will matter to you a month from now.
Or how valuable that awesome upgraded music system is when the standard one sounds just the same to your ears and is working completely fine.
Based on experience on buying and spending habit of your own, this is the most difficult area of spending to maintain discipline.
Based on experience on buying and spending habit of your own, this is the most difficult area of spending to maintain discipline.
Try this approach: Every time you feel a need of buying the latest and greatest product, put the money that you saved in a special saving area like a locker and keep it reserved for big-ticket items that are actually important to you.
When you go to buy something that truly matters to you, you will be amazed at how much money you’ve saved up and that you dont have to face any money problems again.
Follow a simple approach when you buy anything and make sure to prioritize your regular needs also think twice before spending on any more unwanted luxury that you actually dont need and use your savings to buy the important daily life stuff that you require.
Follow a simple approach when you buy anything and make sure to prioritize your regular needs also think twice before spending on any more unwanted luxury that you actually dont need and use your savings to buy the important daily life stuff that you require.
These are some logical ways of helping you develop a better purchasing power via spending money wisely.
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