Too often we equate cost with value and marketers prey upon this misunderstanding. You’ve heard the old adage, “You get what you pay for,” and so many times this is true. However, the world we live in is saturated with consumerism and a “buy it now” mentality that far exceeds a “keeping up with the Jones’” mentality.
We are seeing a strange dichotomy developing in the marketplace; consumers educating themselves and arming themselves with tools to ensure they do not pay more than absolutely necessary and conversely, consumers who focus solely on the lowest cost, regardless of whether the product/service they are buying is a good value.
So what determines a good value? The dictionary defines value as “the importance, worth, or usefulness of something.” However, in our world, value is more complex. For example, one product may have a slightly higher price than a competing product. However, it will last for 10 years whereas the lower cost product will need replacement within 2 years. Therefore, the higher priced product is a better long-term value because it lasts longer and costs less than replacing the other product over the 10 years.
We have moved away from a long-term value mindset and that is hurting us; as individuals, as families, as communities and as a country. Returning to a mindset of strategic financial management includes the knowing when to avoid purchases you really cannot afford. “Live like no one else today so you can live like no one else tomorrow” is not just a catchy quote from financial management guru Dave Ramsey but is based in fact. It goes hand in hand with the age old saying, “The definition of insanity is continuing to do the same things and expecting different results.” It’s time for something different, it’s time to make an investment today that will pay large dividends in the future.
And it all starts with an NTC membership. Our website will help you learn more and to find out how you can take one step today that will impact your life for years to come.