How many times has someone taken a look at what you bought and come to the determination that you’ve overpaid, in some cases badly, for this particular item?
Some would argue that not only did you overpay but might also suggest that these types of buys are the ones that are synonymous with spending more for something then it is truly worth.
The tricky part, often times, is two fold. We don’t want to buy something used, for starters, as the general population equates new with better. So, in that regard, we’ll overspend for something that we believe stands for or is immersed in quality, versus looking for a less expensive (not cheaper) alternative.
Take for instance jewelry. You could argue that jewelry is priced to sell in a way that entices us to overpay. If you’re buying a necklace, ring, watch or something of that ilk, and especially if you plan on giving it to someone, you’re going to want to make sure it’s new. Jewelry is terribly overpriced, and we pay more for the aforementioned items because we don’t want anyone to think that we’re giving them something that was on another person’s arm, finger or wrist.
The truth is jewelry depreciates rather quickly, and used isn’t always a bad thing, particularly if you can get something that is certified and can be vouched for as being legit (such as the diamond on a would be engagement ring). The misnomer that somehow you’re giving someone a lesser product is silly when you consider they’re getting the same thing you’d see in a storefront for a fraction of the cost.
You could say the same thing about cars, trucks and personal transportation in general. When someone tells you that a car’s value drops badly the moment those wheels leave the lot, you’re not being misled. Buying a used car makes perfect financial sense on a number of levels, especially when you factor in a warranty that is going to keep you fairly safe and financially secure if something goes wrong, not to mention the money you’ll save on having no car payment (or a very small one) at all.
The propensity to overspend is greater when you assess something as being more valuable then it truly is. That money belongs in your pocket, and the reason it isn’t in that location is because you’ve convinced yourself that a new trumps all ways of thinking, when in actuality that couldn’t be further from the truth is most scenarios.
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