Trade-Offs and Buying Decisions

To make the most of your buying power, consider trade-offs. Suppose that you buy a sound system with a credit card instead of waiting until you have saved enough money to pay cash for it. You get the pleasure of having the sound system now. However, you may pay a higher price in the long run because of fees and credit card interest rates the credit card company charges for use of the card.

Perhaps you choose a jacket because it is the cheapest one available. Within a few days, you may discover that it is poorly made or difficult to repair. You may save time by ordering a sweater from a catalog or online. However, if you decide that you do not want it, you may have to pay postage to return it to the mail-order company. You might not get your money back for the initial shipping and handling charges. Keep in mind that buying decisions always involve trade-offs, so you will be prepared to make wise choices.