Lately I have been thinking of principles that can be adopted that can help make the transition to acquiring financial means easier. As someone who is obsessed with mastering my finances, the techniques that I have adopted can sometimes seem like an obstruction to the fun parts of life.
Yes, it’s fun to save, as well as invest and put money aside, but what about your quality of life while you are on your way to financial freedom? While it is important to be thinking about your future, you want to make sure not to go crazy all the while.
I am here to tell you that you do not have to live this way, especially if you live life with a simple rule when you are planning on buying something out of the ordinary that might cost a little bit more than usual.
Making effective purchasing decisions
We as Americans are ENGULFED in the consumer nature. It is in our culture to want to buy the next biggest thing or even have the flashiest exterior to make ourselves look better. Ultimately, these purchases are the exact things that bring our downfall.
Imagine if the things you buy could actually increase your state of living while fulfilling the itch that you have to buy something that you truly desire.
In order to successfully fulfill this craving, you MUST buy things that APPRECIATE in value.
Hear me out,
If I wanted to look more classy, no matter the intent behind it, and I decided I wanted to start purchasing more expensive clothes, I might decide to start looking into things that don’t lose their value, because the demand of that item inflates with time as long as it is kept in good condition. And usually, you will keep it in good condition because you spent a lot of money on it and you enjoy it!
The ultimate dream is for these items to actually pay you back in the long run. There are tons of collectable items or inventions that people have produced that inevitably became wise investments as time passes.
Moreover, some items even have a value that fluctuates, meaning that the cost of the item may go up or down based on the state of the market. If an item is high in demand, usually that item experiences a huge price increase because more people are trying to get their hands on them.
Becoming more aware of these items and revolving your purchases around them ultimately pays off in the end. Let me give some examples that may help your gears turn a little more about this concept.
Realizing the Items That Pay You to Purchase Them
I want to address the elephant in the room first of all. I realize a lot of people’s taste is not to have the most flashiest things in the world or even spend the most money on something. But this concept goes way beyond just expensive luxurious items.
Items that can benefit you span over such a broad spectrum, it can be hard to not impliment a concept like this in your own life. For example,
Lets say that you have a love for playing the guitar and you’ve always wanted to purchase one that might last you longer and sound better than any previous guitar you have ever owned. You might just decide that you would do a little more research to see which types of guitars in the past have appreciated in value and for what reasons. I know that a lot of the time, guitars raise in value just because they have a simple signature on them from an artist that someone likes. It’s things like this that can actually help raise the value of the items you purchase and even PAY YOU BACK in the end.
Lets kick it up a notch. Think about those items that are actually luxurious, things like fancy designer clothes, or accessories. Items like watches shine their true colors in this concept as they are viewed as a piece of art. A statement of class in the modern world. Nowadays no one needs a watch to have to tell the time, however, they have become a symbolism of class and luxury.
Purchasing something like a Rolex watch is sure to not only look classy but also appreciate in value and hold its intended purpose for a very long time. A perfect example of getting the most bang for your buck instead of spending your money on cheap knockoffs which you will forget about in a couple years time.
If a Rolex isn’t really in your price budget (which is damn sure isn’t in mine) maybe something else like a pen is more so within the range you’re looking for.
It’s amazing how something as small and insignificant as a PEN can even hold value. I have recently learned that even pens are collectable items which can sell for a large sum of cash. Imagine being able to spend money on something so insignificant that you are able to use on a daily basis like a pen and eventually being able to sell it for more or even the same cost as what you bought it for when you’re ready to move on to the next thing.
Purchasing Items Which Fluctuate in a Volatile Market
While some items are able to pay you back with a little help from father time, other items can pay you back in a much shorter time frame.
There is always the chance that demand for an item might surpass the supply that is being produced or is currently circulating throughout the market. Today, COVID-19 has made it so that many highly sought after items are almost unattainable due to the lack of production that has been experienced.
We see it with things like the new next generation consoles as well as the new NVIDIA 30 series graphics cards which are almost always out of stock. Because of this barrier of production, prices have skyrocketed on most auctioning platforms, demanding insane prices like $1,500 for a ps5 which is sold MSRP at $500! Things like this make the entire tech market rise as people will then start looking for the next best thing.
Enter, your well thought of purchases.
Because of the fact that the new 30 series cards are extremely sought after, the entire graphics card market has risen as a whole. It has skyrocketed the prices of lesser graphics cards because consumers are looking for the next best thing to fulfill their PC needs.
My video card for example, was purchased at $300 and is now selling for $600 on eBay due to the massive demand for them currently. I could easily sell my old graphics card and use that money in order to purchase a BRAND NEW 30 series card with a little determination.
It’s examples like these that you should keep in mind when making purchases. I am able to upgrade my performance at virtually no cost to me because my card rose in value! Realizing the value that an item holds before purchasing it is one of the key steps in making wise purchasing decisions.
I hope that this concept helps you begin to think of how the average items in your life that you enjoy can actually start paying you in the end. If you have any further questions about this don’t hesitate to send me an email as I truly enjoy interacting with my readers.
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Andrew Martinez, owner and writer of Minerva Money
YouTube: Andrew Martinez