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The Secrets of Buying

I've long considered myself a fantastic buyer. Notice I don't say shopper - that alludes to a hobby or form of entertainment. To me, buying is serious business.

Even before I had any serious degree of financial success, many people assumed I was rich because of my material posessions. I guess most people could pull that off by maxing credit cards, but I was actually socking money away for later.

How do I do it? Read on...

The most important thing to remember is value. Sounds obvious, but nearly everyone ignores value on a daily basis. Value means that you're getting the most for your money - not that you're saving the most money necessarily. A Rolex at $1000 might be an incredible value, but a Timex could be a rip off at $150.

Value, Price, and Cost

The concept of Value vs. Price is one that I am inexplicably fascinated by. Maybe it's the fact that most people ignore it entirely, or maybe it's because following its principles virtually guarantees success in any area.

Most people do not understand the difference between value and price or, at the very least, greatly underestimate it.

So, what is the difference between value and price? Value is the benefit derived from an action, and price is the benefit lost by performing an action. What makes this such a profound concept is that every action has a value and a cost associated with it, and it is usually fairly easy to measure. Our unconscious minds are constantly evaluating the price and value of every possible choice, which ends up governing many of our actions.