The economics behind realities such as inflation
Gauge the Intrinsic Value
Okay, so perhaps intrinsic value in the true sense of the term is not exactly what you’re looking for, because you’d probably make no buying decisions at all if that was the exclusive mandate. Rather look at it from the point of view of seeking personal value – is what you’re buying going to give you personal value? Are you going to personally benefit out of it and do you really need it?
Of course buying something that you want instead of something that you need can count as an act of getting personal value out of whatever it is you’re buying, but the idea is that you should only complete the purchase of something if it bears some sort of specific value to you as opposed to buying on impulse or falling victim to some super seductive marketing. Just to make a loose example – do you really need different-colored screen protectors for your mobile if what you really wanted or needed is just some good, effective protection for your phone?
Shop Around for the Best Price
Shopping around for the best price is thankfully much, much easier today than it ever was because you can take your search online! But yeah, that is indeed another way of making sure you always get maximum value out of every single purchase you make and this can be applied to a buying decision that covers any and all areas of your life, from the leather couch cleaning agent you see in one of those post-midnight home wares commercials to the plane ticket you book to fly across the country.
You can (and should) even apply this informed approach to the financial services you make use of since a better deal is likely always in the offing if you just take the time to shop around a little. The interest on an installment loan Chattanooga residents pay over the interest paid by those who take out the same type of loan in East Ridge perhaps has the Chattanooga residents enjoying a better deal, for example and so I’d say a better deal to be had in this way is worth the 15-17 minute drive, is it not?
Use the Most Efficient Payment Method
Money exchanges hands in a number of different ways and none of those trading channels are free! Some of them cost less than others however and if you want to retain as much of that value as you possibly can, knowing which medium of money exchange is the cheapest in any situation should become second nature to you.
You’ll notice that I referred to it as exchanging money and not exchanging currency. This is because currency (bank notes and coins) is but just one of the different mediums of money exchange, often working out to be the cheapest if you discount the withdrawal fees you were charged to take your money out of the bank. Otherwise there is indeed quite a bit of value to be extracted out of the manner in which you pay for your goods and services, which subsequently adds to the overall value you get out of each transaction.
EFT payments incur no transaction fees for example, so too paying with your debit or credit card at a Point of Sale, whereas having a set amount deducted from your account via debit order does incur fees. So make the right choice for the right purchases.
You don’t need anything even close to Ph.D. Economics knowledge of the financial industry to gain a basic understanding of what value is and how to gauge that value, especially if you consider it on a personal level. Apply these three mentioned considerations to every last purchasing decision you make and you’ll be sure to get the best value out of every last penny you spend.