How you can save money by spending money
It sounds counterintuitive, but splurging can save you money. In fact, sometimes going for the cheapest option on the shelf is going to cost you the most money.
One obvious example that many people know about is printers. Cheap printers tend to be “loss leaders,” meaning that they’re cheap, because the manufacturer knows that you’re going to end up paying through the nose for the ink the printer requires. Ponying up more cash initially for a quality printer can save you in the long-run on cartridges and in a machine that will have more longevity — standing the test of time and not requiring another cheap purchase as a replacement.
Time and again, trying to save a buck on your initial sunk cost ends up burning you in the end. When consumers get wise to this concept, they can save some cash in the long-run.
So where else is splurging going to actually save you money over time?
Splurge Purchases That Save
Ellie Kay, a personal finance expert, doesn’t call it splurging. She calls it “investment purchases.”continue reading »