If you have extra cash today, where would you put it – in an investment or grab that pair of shoes on 70% sale?
[Image courtesy of thanunkorn / FreeDigitalPhotos.net]
Last Thursday, I was at the Philippine Stock Exchange building in Ortigas.
After walking under the scorching heat of the sun for fifteen minutes, I found myself inside the elevator going up the 24th floor to attend the seminar on Investing in the Stock Market Today by the COL Financial.
A few hours after, I stepped into the elevator going down and later found myself at the ground floor entering the doors where I found a grand sale – with a whopping sign – up to 70% OFF!
Yes, there were branded shoes, shirts, and caps now being sold at super bargain prices.
I had two options then. First, I could use my extra cash to purchase something I would pick. Second, I could use my credit card to pay for three more things I would pick.
So there I was, walking around and looking at things I might like. Remember, I had two options, right?
Well, not really. I had a third option. My third option was to walk out of that room without any cash out or added obligation on my credit card.
Guess what? I chose the third option. I did because I think I don’t need to buy more shoes or shirts or cap that very moment.
I located where the exit door was and excused myself out.
Often times in life, especially in our financial life, we think that we have two options and that we had to pick option one or two. What we miss to consider was there were actually more than two options. There’s option three or even four or five.
Often times, we are faced with “bargain” opportunities and we think it is an opportunity that we have to grab thinking that an item that is regularly sold at P1000 is now sold at P300. We are saving P700 when we purchase it! Really?! The truth is, you walked out the door with P300 less than you walked in that door. The question is, do you really need that item? If yes, good for you. If not, then think again.
So let’s go back to the question: If you had extra cash today, where would you put it – in an investment or grab that pair of shoes on 70% sale?
Now, you actually have more than two options as well and investment can be interpreted in different ways. Perhaps, you need to invest more in learning. Enrol in a course or buy that book or attend that seminar. Perhaps, you need to start saving and build your emergency fund. Perhaps, you need to start investing in the stock market. Or perhaps you really need to buy that new shirt or a pair of shoes because you really need it.
The choice is yours! Just remember these two nuggets:
First, when faced with two options, look for other options. There might be other options which are way much better.
Second, when buying something, don’t buy just because it’s on sale, buy because you need it. How about saving or investing it?
So where again will you put your extra cash?
Live your dreams with love,