Three Factors to Consider When Deciding Whether to Spend
Money is a tool to be used , but you want to use it wisely. Sometimes it makes sense to spend it, and sometimes it isn’t worth it. Financial expert Carl Richards invites you to consider three factors when deciding whether to buy something.
Most of us have made purchases that we regret. On the other hand, you probably also splurged on something expensive that was worth it.
To balance both extremes, Richards said, it’s important to consider the following three factors:
Usefulness : Last year I wrote about a $ 5,000 road bike I bought. At the time, the purchase seemed completely insane, but I did some mental math and realized that if the bike lasted even twice as long as some comparable models, it was worth buying. In fact, it took more than twice as long and I never looked back. So it was worth it because I got a lot out of it.
Pleasure: If you don’t like something, it’s not worth it. If the choice is between a cheap can of sardines or wild-caught Alaskan salmon, no matter the price, if you’re not eating it, neither is worth it….
Cost: This is not always the most expensive thing to be worth (due to how and how much you use or enjoy). It might just be something that you find incredibly valuable.
Together, all three factors influence your decision. Of course, there are many additional considerations within each factor as well, but they should at least give you an overview to help you make a more informed spending decision. To read the rest of the article, follow the link below.
Three ways to think, “Is it worth it?” | New York Times