You see that commercial and it just compels you…you have to have that exercise machine!
You see that car…and you think of how nice it would be to drive it.
You hear about a “hot stock” and think about putting a good chunk of money into it to “make some big money” quick.
Before you even know it, you’re spending good money…chasing bad purchases or investments.
Next time, before you buy (or do) anything, ask yourself this ONE question:
“What is my return?”
This could be:
- ROI – Return on Investment (how much money will I make, and how quickly will I get my original investment back?)
- ROL – Return on Life (will this make my life easier?)
- ROT – Return on Time (is this worth the investment of my time?)
Remember that with each choice you make, you are giving up the ability to do something else. In economics, this is called “opportunity cost.” This could be measured in time or in money.
Each time you make a choice, in how to invest your time or your money, you are making a choice for your future.
Time and money both compound. Are they compounding in your favor?
Discuss
Have you bought something you no longer use? Have you been frustrated by your lack of happiness after purchases? Do you like your ROL?
Leave a comment below.
{ 2 comments… read them below or add one }
This is a classic question, Why should I buy it?
Usually we do not think deeply about return of investment at the time of spending. Even so, we should analyze where the money goes.
Great post.
Thanks Daniel. Most people don’t think beyond the impulse to have it as a result of good marketing. Thanks for giving your feedback