FILDADDY’s Business & Money

Is It Really Cheap?

If you got here expecting information on cheap automobiles, this is not it.  This post is about defining what “cheap” is.

My friends and I had a very interesting discussion the other day as one of them was intending to buy a new car. There are lots of good deals going around these days with some quite better than others. One of them encouraged our friend to go ahead with one of the options as he thought the offer was cheap. I qualified this by saying that for our friend it was but for some of us it was not.

What is cheap?  If we look this up you wil find “cheap” defined as “relatively low in cost or comparatively inexpensive”.  Most of you would take this as inexpensive relative to the price of another product. But a more effective definition should be “inexpensive relative to our own spending power”.

A lot of us are drawn into making purchases because of this.  Advertisers would promote their porduct saying it is cheap. Yeah lower, but not necesarrily cheap. Make sure you have a plan, a budget, and review your purchase against your budget before before making that purchase. Make sure that any additional expense you incur does not take you off your plan.

The next time you make a purchase and think it is cheap, ask yourself, “Is this vs. another product or vs. my own capacity to spend?”.

Cheers!