15 Sep What is Smart Spending?
As a society of consumers, we spend money almost everyday. Between going to the grocery store, the pharmacy, the gas station, or going online, we are constantly spending. Most of the time, we buy something because there is a need or we just want it. Smart spending is covering the need and the want, but the final outcome will be a return on your investment.
What if I tell you that you can buy something that you need or something that you want… you can use it, and when you’re done with it, you can sell it and get at least what you paid for or more? Smart spending is not necessarily buying something on sale, smart spending is buying something of value for a lesser price than what it’s worth and knowing you are in the money.
Various products that usually fall under smart spending: real estate (residential and commercial), certain jewelry, certain artwork, some vehicles, and a few luxury items that carry a high demand that far exceeds the supply.
For example, I just purchased a 1960 Ferrari 250 GT that will appreciate over time. As a financial advisor, I always advise my clients to be smart about their money and I believe I have to practice what I preach. I enjoy collecting cars, so if I’m going to buy a car to add to my stable, I want that car to increase in value over the time. This car will do that.
And, just like anything, you want to buy low and sell high. The trick is to know when to pull the trigger. Experience teaches you how to properly identify times to be more aggressive versus times to be more conservative. I’d rather be aggressive when everyone is panicking… you get a much better deal if you’re in the market to buy.