When you are making purchases, ask yourself if the item will appreciate in value or depreciate. If it has a fast rate of depreciation (new cars after they leave the lot, clothes from department stores sell for $1 or less at a garage sale), then consider other options.
- Could you purchase a similar item used but in good condition? Many consignment shops have clothes that still have department store tags on them!
- Could you look into another option that might appreciate in value? Instead of purchasing furniture made of sawdust, buy antiques. They are built to last, beautiful, and often hold much of their value.
- Could you spend a little more on something and have it last longer? Our daughter wants a microphone for Christmas. When I was looking for one, the Target employee showed me one that cost a few dollars. It was a piece of plastic junk that was made in China and made to break within a short time after purchase. I declined his offer saying that I’d rather pay a little more for something made better that would last longer. Even if she doesn’t use it for years, perhaps a better quality made item could be resold or handed down to someone else who will enjoy it.
- Could the purchase help to reduce some other cost? For instance, it might be worth it to pay more on the front end for a car with better gas mileage and in good condition.