PricelessSavings.com

No, our writers here at PricelessSavings.com have not gone insane. The title does indeed read “Stop Saving, Spend More!” There are cases in life when spending more may mean saving more in the long run. Such instances may not always be apparent, but if are aware of them you can take advantage of them.

Often as wise comparison shoppers we become fixated on getting a “good deal” and lose focus of what we are really buying. This “good deal” syndrome overpowers our perception and generally makes our consumer decisions for us.

• For example, ever go to a store like Costco and buy something in bulk because it was such a “good deal” just to realize once you get home that there is no possible way you will be able to use everything you just bought – much of it goes to waste and that “good deal” really was not one at all! Or have you ever found yourself in a situation shopping for something when you come upon two comparable items - one of which you really want and know will be perfect for what you need it for, the other you can tell is of lesser quality but is cheaper and/or on sale. Buying the cheaper item saves you from the guilt of spending more money, but if every time you use this item after your purchase you feel a dissatisfied yearning for the more expensive comparable product you had dismissed, then chances are you should have just gotten the more expensive item because your decision has robbed you of any real enjoyment this purchase could provide.

Okay, we’ve established that sometimes you should loosen the money belt but when do you know to do so? How can you tell if something is really worth spending more on? Of course this judgment call is entirely based on personal values and appreciations, but a true test of successfully making a “good deal” purchase is an immediate feeling of satisfaction coupled with no long-lasting regret. Unfortunately it is normally difficult to determining long-lasting regret before reaching the cashier, so it is a good idea to think about what you are using the item in question for, for how long and how frequently will you use it.

• As an example, take the simple bed you sleep on every night. Everyone has one and prices vary drastically for similar sized beds, but have you considered how much time you spend sleeping on it and what a good night’s sleep does for your everyday life. You may save a few hundred dollars on a cheaper quality bed, but is it worth degenerating ¼ of your life trying to sleep uncomfortably and potentially droning every waking moment you have? Not only would you lose precious revitalizing comfortable sleep, you may also incur intangible losses such the ability to outperform at a job interview due to poor sleep. Something like that is worth spending a bit more to get a better quality item because the overall payback is much greater that the immediate savings you get from a “good deal” for a lesser quality purchase.
• So let’s recap to drill this concept home with a quick comparison. Imagine both cases below if you were a bit strapped for cash:

• Another great thing about making spending more on the stuff that really matters a priority is that it leaves less money left over to spend on the frivolous and impulsive things.

This concept of spending more when it counts does not only apply at the local mall. It can apply to your decisions regarding your financial debts as well.

• For example, consider any financial loan you may have incurred such as a student loan, car loan and/or mortgage loan. If making extra payments is an option for you, the smart and responsible thing to do is to take full advantage of them. By paying down any loans you have earlier you not only rid yourself of the principle loan, you save your self in aggregate interest payments. Really, for every dollar you make in extra payments, you are getting more than a dollar worth of value because you are knocking down the high interest that generally follows with such debt. If assuming a loan can be considered taking one step backwards in life, then making your payments as well as an extra payments can be considered taking two steps forwards to put you ahead that much faster. You may have to sacrifice a few niceties such as fine dining or luxury items in the short run, but the amount of money you save will more than make up for those items – also, not to say that you cannot have those items still after your loan is paid off. For you number crunchers out there, I’m sure there is a financial formula you can use to calculate exactly how much you are saving by doing this, and the numbers may be astounding!

Why stop at debts, when we can also talk about how spending more on your investments can be ideal too?

• Imagine this dilemma, you have some money saved up and you are faced with the decision to either purchase a fancy $50,000 sports car or put a down payment on a $200,000 house (not really a dilemma I suppose if you have $50,000 kicking around, but bare with me). Purchasing the car leaves you with no debt as you are buying the car straight out with your cash. Purchasing the house leaves you with a $150,000 mortgage. Seems awfully strange to consider taking on a huge loan when not necessary, but the thing to realize is that housing is an appreciating asset where as vehicles are a depreciating asset. You may be paying a mortgage to keep your house, but the rate that it appreciates in value may well compensate you beyond what you would believe.  Keep your eye on the prize and you may realize that in a year’s time your house value has appreciated more than $50,000 compared to if you had bought the car and it depreciated $15,000 in the first year. In a sensible world we would all stay away from purchasing fancy cars and the latest gadgets and electronics because they are obvious depreciating assets. But, atlas we are but human and prone to temptations, so one must learn to deal with the pains of impulse buying.

Well, there you have it. Sometimes it pays off to pay more for things in life, but properly identifying when to do so for yourself may be tricky because everyone has different values and appreciations for things in life. So…

• If you need to walk a far distance everyday, go out there conscience-free and buy a pair of expensive long-lasting comfortable shoes (sorry ladies, this only applies to one comfortable pair, not an entire closet full). You don’t want to pay for a cheap pair and suffer blisters and heel abrasions.
• If you live in a climate where you must endure colder temperatures, get consider getting that nice winter jacket to keep you from getting sick and feeling miserable. 
• If winter also brings upon you heavy snow, then consider buying winter tires for your vehicle to keep you and your loved ones safe as well as to minimize the risk of costly vehicle repairs in an event of an avoidable accident.
• If you use a personal computer for work and pleasure often, then buy a decently performing one that doesn’t take a minute to react to a double-click of the mouse.
• If you are human and need to sleep every night, then by all means pay more for a bed that you will be able to sleep comfortably on.
• You get the idea…