Is paying $150 for a $500 dress, really saving? I’m sure most females are going to say “Yass!” My honest opinion is that it is not. You still spent $150 on a want, not a need? What is a want and what is a need? A “want” is all the luxuries that we desire. All the expensive watches, sports cars, and fancy Versace clothes to mention a few. You get the point. Basically, anything that is not necessary to carry on with your life. Need, on the other hand are all those essential items that are required to go on with your daily routine. An example that used to be a luxury but has become a need in most people’s lives is the phone. Other examples might include toilet paper, toothpaste, food… you know the basics.
We all have tons of choices to make every single day. From waking up when you set the alarm or hitting that snooze button until you don’t have a choice, but to get up. The same thing happens when you are shopping. Either you go with a determined mind to buy something specifically but left with 20+ items because they were on sale. Don’t get me wrong, that is efficient marketing on behalf of the retail stores. We just find a way to convince ourselves that maybe we do need certain things, even though we know we don’t. On the other hand, if you go out to buy something because you have a certain need, and you happen to find it on a sale, then YES! You could say you saved yourself a couple of bucks, but only because you already had measured in that expense and it was at a higher price. Now, you can re-allocate those extra funds into a different place such as your savings account.
Again, you are free to spend on anything you want. Just know that you have a financial goal, and you are trying to work towards it. If you want to, get the dress, but if you do, don’t get it and try to make yourself feel better because you think you are “saving.” You are still spending money, not saving it. Always have in mind, corporations tend to elevate prices in order to say they are giving you higher savings. This entices you to go out of your way and buy it. When in reality, you just bought it for the price they intended to sell it for.
I understand that there are many opinions when it comes to this topic. I’m open to other opinions. I do come from a conservative and financial point of view. My view of money well spent is by investing what is usually used for “wants” in order to create a compounding system for savings. I try to get in the mind of business owners and understand that they try to never lose. What is the purpose of this sale and how does it compare to other places?
My first priority is paying off my debts and having a solid emergency fund ready for inconveniences. Secondly, a percentage of my income will be invested and the rest might be considered for shopping. Depending on my current financial situation. Just remember to always have your financial goals and “why’s” in mind. Stay hungry and stay TENACIOUS!
Edwin A. Rodriguez
Founder of Financial Tenacity