The Money Podcast Is Cheaper Better or is Better Cheaper?
In this episode of The Money Podcast, Rob discusses what it means to spend your money wisely. In this case, it means understanding that more expensive doesn’t always mean better while also knowing that paying for higher-quality products can often save you money because they’ll last longer. Rob also points out the benefits of investing in high-quality material items as tangible assets so that you can enjoy your money while allowing it to appreciate in value in the form of a watch, classic car or work of art. But most importantly: Before buying anything, always do your research!
Key Takeaways:
- It is important, especially in the business of investing in things like property or other material items, to understand that expensive is not inherently better.
- However, that doesn’t mean buying the cheapest option is always right either, especially if you end up spending just as much if not more money on maintenance, repairs, and upkeep.
- What’s most important is looking for good quality, and the price point for that is going to vary depending on the actual thing you are looking to buy.
- You want to enjoy your money but not waste it, and so putting your money in material items that you know from researching will appreciate in value (watches, art, classic cars), gives you the enjoyment aspect of a physical item while also making a good investment. These items also give you the ability to move money during times of economic change.
- This philosophy can also extend to everyday things like clothing. A jacket that costs 100 pounds and lasts for one year before falling part is not money saved when compared to a 400-pound jacket that lasts for eight years, essentially costing 50 pounds a year.
- Quality over quantity is a smart way to buy things you like without killing your capital. Only buy things you know you will want to use for a very long time and will last a very long time. This creates a positive feedback loop because since you’re buying fewer things, you can buy more high-quality, expensive things, and because they are high-quality, they’re going to last longer.
- The best way to determine the difference between a good, high-quality product or investment as opposed to one that’s just expensive? Research! Take the time to learn about what you’re buying and then it will also make researching a quicker and easier process next time.
- But beware false economies! It is possible to over-analyze and over-research and essentially spend ten hours trying to save five pounds. If something costs a little more but will ultimately save you enough time or provide you with enough convenience it can pay for itself in time saved.
Best Moments:
“It’s not just about blindly spending more or blindly spending less, you’ve got to do your research.”
“It’s worth putting your money into a material item that doesn’t depreciate”
“Strategically, I think it’s good to buy less but better quality.”
“Remember that price and value are very different.”
“Poor people spend a lot of time trying to make money and rich people spend a lot of money trying to save and make time.”
Valuable Resources:
The Disruptive Entrepreneur Podcast - https://itunes.apple.com/gb/podcast/the-disruptive-entrepreneur/id1076679649?mt=2
Money: Know More, Make More, Give More -
About the Host:
Rob Moore is the host of the UK’s no. 1 business podcast “The Disruptive Entrepreneur,” as well as an entrepreneur, property investor, property educator, and holder of 3 world records for public speaking. He is also the author of 9 business books, 5 UK bestsellers, and the global bestseller, Life Leverage.
“If you don't risk anything, you risk everything”
Contact Rob:
Facebook - https://www.facebook.com/robmooreprogressive/?ref=br_rs
LinkedIn - https://uk.linkedin.com/in/robmoore1979