How to make the right investment decisions?

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

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Seth Godin is a writer and entrepreneur, author of many books, and marketing guru. We get a lot of interesting ideas from his blog. We have already written about his "atomic method" for creating presentations. Today our post is devoted to Seth's interesting thought on how to make the right decision whether to buy this or that thing or service, or you do not need it as much as it seems.

We often make reckless decisions when it comes to big money, and marketers are well aware of this.

Imagine: you buy a car for $ 30,000 and at the same time you can install a more powerful stereo system with 18 speakers of 100 watts for only $ 500. Will you do it?

You may be choosing between a job that you enjoy and one that pays more. What will you choose?

Or let's say you are comparing two universities. One is prestigious and the hostel is better there, but you will have to pay a considerable sum for tuition, the other university is simpler, but you are provided there not only free tuition, but also a scholarship.

In most cases, each of us will take a stereo system, although until this moment the sound quality in the car did not really care, even at home many do not have a super-stereo system, and we choose an expensive university, because education is so important. This is probably a good choice, especially if you have the funds to pay for your studies, because many people do not have them.

But think about this: money is just numbers.

Choosing a stereo system, we begin to think how great it is to travel long distances, listening to music in excellent quality, and the small price makes our choice confident and final. After all, we do not lose anything except the figure: $ 500.

The amount that you have to pay for the entire time of study at the university is so large that you cannot really estimate it somehow. This is probably not the number that you come across on a daily basis. What do you get for this money? Probably, it is mainly a daily feeling of pride and self-esteem from the fact that you are studying at a prestigious university.

Stop using numbers and think differently.

Would you buy a stereo if you have to give up a cup of coffee at a Starbucks weekend for a year?

And if you choose a simpler university, you can buy yourself a car, or spend money on additional courses (perhaps more necessary than the main specialty), in the end, you may not have to get into a loan, which you will pay for several more years after graduation.

The key is to stop comparing your dreams to numbers that don't really mean anything. Compare one dream to the next to find what you really need.