Until a few years ago, I used to buy products & services entirely based on the cost. Especially where the value proposition wasn’t very apparent.
With time I realized, how much more expensive & detrimental the products & services were to me for which I paid a lower price.
The cheaper things sooner or later started showing awful results which made me realize why they were priced cheaply, to begin with.
I started wondering why we focus on price and not the value we get.
We Indians are conditioned to find bargains, cheap deals and discounts wherever available. It was also the function of the humble backgrounds many of us have grown in.
We were conditioned to look at immediate cost savings and not at the consequent value destruction in the long term. Unfortunately, the phrase ‘penny wise pound foolish’ applies to a lot of us.
However, a few who focus on value are able to get out of the cheap-price trap and prosper in all aspects of life.
The most expensive consultants, lawyers, doctors, and financial advisors add a tremendous value which justifies the costs. The wealthy people can afford them to get wealthier and those who are fixated on costs, lose out in the race to be successful.
This also applies to investments. Investing in quality businesses would generate decent returns in the long term and these businesses would appear more expensive than the rest of the lot.
Having said this, you should also certainly not overpay for anything that takes away any gains that you can reap.
The bottom line is that you should consciously set your mind in order to understand the value first and cost later instead of the cost-first approach which is a deterrent to understanding the excess value you get.
This simple (but not easy) change in mindset makes all the difference between how early you achieve your important life goals & success.
As wise men say, change your mind to change your life.
Originally posted on LinkedIn: www.linkedin.com/sumitduseja
Truemind Capital is a SEBI Registered Investment Management & Personal Finance Advisory platform. You can write to us at connect@truemindcapital.com or call us at 9999505324.
