For most people, spending money is a whole lot easier and more fun than earning it. I wont tell you to stop having fun and turn into a penny-pinching, stay-at-home miser. Of course you can spend money. But there’s a world of difference between spending money carelessly and spending money wisely. If you spend too much and spend unwisely, you put pressure on your income and your future need to continue working. Savings dwindle, debts may accumulate, and you can’t achieve your financial goals.
In term with getting the most value of spends, you can find high quality and low cost in the same product. Conversely, paying a high price is no guarantee that you’re getting high quality. Cars are a good example. Whether you’re buying an SUV car, or a luxury four-door sedan, some cars are more fuel-efficient and cheaper to maintain than rivals that carry the same sticker price.
This post provides practical guidelines on how to get the most value of your spends by emphasizing three based financial mindset: (1) Focus on the total cost in long run the accountant way to count; (2) Don’t buy brands, be suspicious of companies that spend gobs on image-oriented advertising. Why? (3) How to get your money back seller does not deserve. Enjoy!
Focus On Total Cost In Long Run [The Accountant’s Way]
If you are not an accountant, I would let you know that in term with capital spends, accountant always count the total cost and in long run.
Suppose that you’re comparing the purchase of two used cars: the Solid Sedan, which costs $11,000, and the Clunker Convertible, which weighs in at $9,995. On the surface, the convertible appears to be cheaper. However, the price that you pay for a car is but a small portion of what that car ultimately costs you. If the convertible is costly to operate, maintain, and insure over the years, it could end up costing you much more than the sedan would. Moreover the sedan one has a longer lifetime, means you will be able to use 3 to 4 year longer.
Sometimes, paying more upfront for a higher-quality product or service ends up saving you money in the long run.
People who sell particular products and services may initially appear to have your best interests at heart when they steer you toward something that isn’t costly. However, you may be in for a rude awakening when you discover the ongoing service, maintenance, and other fees you face in the years ahead. Salespeople are generally trained to pitch you a lower-cost product if you indicate that’s what you’re after.
You Would Buy Quality, Not The Brands
You don’t want to compromise on quality, especially in the areas where quality is important to you. But you also don’t want to be duped into believing that brand-name products are better or worth a substantially higher price. Be suspicious of companies that spend gobs on image-oriented advertising. Why? Read on…
Because heavy advertising costs many dollars, and as a consumer of those companies’ products and services, you pay for all that advertising. That simple, indeed.
All successful companies advertise their products. Advertising is cost-effective and good business if it brings in enough new business. But you need to consider the products and services and the claims that companies make.
In grocery stores, for example, you can often find name brands and store brands for the same product sitting in close proximity to one another. Upon reading the label, you can see that the products may in fact be identical and the only difference between the two products is that the name brand product costs more (because of the branding and associated advertising and marketing).
Branding is used in many fields to sell overpriced, mediocre products and services to consumers.
Does a cola beverage really taste better if “it’s the real thing” or “the choice of a new generation”?
Consider all the silly labels and fluffy marketing of beers. Blind taste testing demonstrates little if any difference between the more expensive brand-name products and the cheaper, less heavily advertised ones.
If you can’t live without your Coca-Cola or Samuel Adams beer, and you think that these products are head and shoulders above the rest, drink them to your heart’s content. But question the importance of the name and image of the products you buy. Companies spend a lot of money creating and cultivating an image, which has zero impact on how their products taste or perform.
Get Those Money Back
Take a look around your home for items you never use. Odds are you have some (maybe even many). Returning such items to where you bought them can be cathartic; it also reduces your home’s clutter and puts more money in your pocket.
Try This: hink about the last several times you bought a product or service and didn’t get what was promised. What did you do about it? Most people do nothing and let the derelict company off the hook. Why? Read on…
Here are some common explanations for this type of behavior:
- Conflict avoidance – Most people shun confrontation. It makes them tense and anxious, and it churns their stomachs.
- Hassle aversion – Most companies don’t make it easy for complainers to get their money back or obtain satisfaction. To get restitution from some companies, you need the tenacity and determination of a pit bull.
- Low standards – Consumers have come to expect shoddy service and merchandise because of the common lousy experiences they’ve had.
You can increase your odds of getting what you expect for your money by doing business with companies that:
- Have fair return policies – Don’t purchase any product or service until you understand the company’s return policy. Be especially wary of buying from companies that charge hefty “restocking” fees for returned merchandise or simply don’t allow returns at all.
- Can provide good references – You can sift out many inferior firms by asking each contractor that you interview for at least three references from people in your local area who have had a fence installed in the past year or two.
- Are committed to the type of product or service they provide.
Following these guidelines can greatly diminish your chances of having unhappy outcomes with products or services you buy.
Whenever possible, pay with a credit card if your credit’s in good standing. Doing so enables you to dispute a charge within 60 days and gives you leverage for getting your money back.
If you find that you’re unable to make progress when trying to get compensation for a lousy product or service, here’s what I recommend you do:
- Document – Taking notes whenever you talk to someone at a company can help you validate your case down the road, should problems develop. Obviously, the bigger the purchase and the more you have at stake, the more carefully you should document what you’ve been promised.
- Escalate – Some frontline employees either aren’t capable of resolving disputes or lack the authority to do so. No matter what the cause, speak with a department supervisor and continue escalating from there. If you’re still not making progress, lodge a complaint to whatever state regulatory agency (if any) oversees such companies. Also consider contacting a consumer help group — these groups are typically sponsored by broadcast or print media in metropolitan areas. They can be helpful in resolving disputes or shining adverse publicity on disreputable companies or products.
- Litigate – If all else fails, consider taking the matter to small claims court if the company continues to be unresponsive (depending on the amount of money at stake, this tactic may be worth your time).