Go and Spend Wisely

Go and Spend Wisely

You will achieve the best in life when you apply the lessons you learn in the stories About Money, Making Money, Saving Money, Budgeting Money, Investing Money, and Giving Money.  You will be tested every time you spend your money. Here’s a story, and determine what you can advice the Jones family in their purchase decision.

The Jones family was going to a beach vacation and went shopping for water-proof camera. Mrs. Jones saw the ads from SAMs about a package for Fujifilm FinePix XP70 Waterproof/Shockproof Digital Camera 8GB Kit, Camera Case, and Floater for $170.00.  Because they want to compare with other stores, the Joneses went to a specialty camera store and were given several brands PENTAX, Sony, Canon, and Olympus.  However, the specialty store does not sell by package, and when they add up the cost it was more than $170.00. 
Next stop was Best Buy. Well, the store only carry Fujifilm, Nikon, and Bell/Howell waterproof camera and they don’t sell by package. So no sale, but the sales guy was very good, and suggested to consider the GoPro camera. The Joneses was so impressed by the clarity and awesomeness of pictures and videos taken by the GoPro camera shown in the HDTV. The sales guy said it’s the best waterproof camera there is, and it’s selling very fast.  Everybody is buying it, and by the way it’s also on sale if you buy the HERO3+ with remote.  And, they can return the camera after the vacation if the Joneses are not happy.  The Joneses discussed but without hesitation they decided to buy and spent around $500 including accessories.  They will really look cool with the new camera in the beach. They forgot about SAMs.

Came vacation time, the GoPro camera is not actually and point and shoot camera --- it’s difficult to operate especially if you are not used to seeing a screen. GoPro camera does not come with a screen --- it is accessory that the Joneses did not buy.  Oh well, they settled with their smartphone to take pictures.  After coming back from vacation, they got so busy and returning the camera did not cross their mind. 

Few months after the vacation, Mr. Jones passed by SAMs and saw the Fujifilm FinePix XP70 Waterproof/Shockproof with $40 off.  Guess what, Mr. Jones bought the camera, and gave it the younger Jones who will go to a nature school field trip.

Something to consider when buying things:

  • The best thing is not usually the most expensive or top of the line. 
  • There’s a big difference between needs versus wants.  
  • Even if you can afford it, do not buy until waiting 24 hours. This will give you time to make sure you really need it.
  • Don’t be pressured by marketing scheme.  “Now or Never” offer is always better if you choose Never.
  • Beware of Sale items.  70% discount for an item that will stay in your basement unopened is a waste.
  • Don’t buy to impress others.
  • Extra money does not mean to blow it way to anything.
  • Is the item an asset? If not, think otherwise before buying.
  • Be a “minimizer”. Apply simple living.
  • Finally, align purchase to your GOOD purpose. 

It’s alright to indulge in nice, expensive, and extravagant things ONCE IN A WHILE, but make sure you are committed to your making, saving, investing, and giving money principles in life.

One of our goals in storiestoliveby.com is for all of us to “Strive to Live Better”, and I hope that we achieved that goal in this “Money for teens and their families” series.  I wish I can hear from you.  If not, it’s OK. But the best compliment is when you share storiestoliveby.com to your friends and family. 

Let me end this series by the words from William A. Ward:

Before you speak, listen.
Before you write, think.
Before you spend, earn.
Before you invest, investigate.
Before you criticize, wait.
Before you pray, forgive.
Before you quit, try.
Before you retire, save.
Before you die, give.

 

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