Do you look at affordability or value for money - Part 1
You go to buy apples, you really like the apples, you ask for the price and he says its 100 INR/kg. What do you do?
1. Do you directly buy
2. Negotiate the price/Bargain
3. Not buy at all
Your choice of answer 1 or 2 decides if you look at value for money or affordability.
Lets take another example…
The schools these days are forcing parents to purchase books, uniform etc from school. Irrespective of whether you have got surplus books at home, or almost new uniform of the elder kid that can be used by the younger kid, you are forced to purchase
these stuff at the price quoted by the school.
Remember taking out papers from the old books and binding them together to make a note book for rough work. Didn’t you buy text books at 50% price from seniors? All that is no longer valid.
Do you raise your voice or say the school wants to maintain a standard and so we have to buy it.
Our parents and forefather were people who would look for Value for Money whereas we are looking at affordability.
If you go for shopping, the discussion you hear that this is cheap and we can afford this. The discussion should be though it is cheap, does it offer value for money. Our children will have a tough time managing their finances as they would have not got the necessary learning about Financial discipline.
Purchase decisions based on affordability is the short-cut to run into financial trouble.
1. Do you directly buy
2. Negotiate the price/Bargain
3. Not buy at all
Your choice of answer 1 or 2 decides if you look at value for money or affordability.
Lets take another example…
The schools these days are forcing parents to purchase books, uniform etc from school. Irrespective of whether you have got surplus books at home, or almost new uniform of the elder kid that can be used by the younger kid, you are forced to purchase
these stuff at the price quoted by the school. Remember taking out papers from the old books and binding them together to make a note book for rough work. Didn’t you buy text books at 50% price from seniors? All that is no longer valid.
Do you raise your voice or say the school wants to maintain a standard and so we have to buy it.
Our parents and forefather were people who would look for Value for Money whereas we are looking at affordability.
If you go for shopping, the discussion you hear that this is cheap and we can afford this. The discussion should be though it is cheap, does it offer value for money. Our children will have a tough time managing their finances as they would have not got the necessary learning about Financial discipline.
Purchase decisions based on affordability is the short-cut to run into financial trouble.
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