By now, you've probably been rendered black and blue by Black Friday and most likely a little sore from Cyber Monday. And I can understand it. After all, you've just been bombarded with promotion from all sides with titles like "for a limited time", "just this weekend", and "while supplies last" enticing you to part with your money before it's too late.
The question that we really have to ask is not how much we've saved, but what we've truly gotten for our money. Because more often that not, we are overpaying. Not in a monetary sense. We're overpaying based on what these items are truly worth to us.
Take a smart phone for instance. The physical device usually costs about $200 bucks minimum. Then, you have to pay for the monthly data plan. So for just year one, you've dropped almost a thousand dollars to mostly text your friends, look at pictures on Facebook and Instagram, and oh yeah, occasionally make a phone call. Before long, the next exciting new phone is released which you have to have, and the process starts all over again.
So before you drop a bundle on what you think gives you back everything that you put in, consider that there are actually several other gifts you can buy or upgrade this holiday season that will hold its value much longer than most.
For instance, furniture. On the surface, this is one of the most expensive categories you can delve into. Or is it? If you want to furnish an entire room with couches, chairs, ottomans, coffee tables, and more, it's possible to drop several thousand dollars before you can blink. That sounds expensive. And it is. That's why furniture retailers are always touting interest free financing for a year. It softens the blow. But the truth is that most of your recently bought furniture could easily sit in your living room or den for at least a decade, turning your investment into just $1000 per year or under $100 per month. Under $100 so you can entertain, showcase a room, watch your big screen tv, have family game night and more. Let's see a Droid do that.
Another amazing deal that never seems that way at the time is music. A song on iTunes costs $1.29. Some of us are pissed because many of these songs used to be just .99 cents. The nerve of Apple! But in reality, we drop a little under the cost of a Metro Card swipe, and we get something we really like....forever. That's right. You can use it as many times as you like and it never gets old. Not only that, but thanks to the Cloud and multiple mobile devices, you can take this song just about anywhere. How many times do you think you play a typical song over your lifetime? A few hundred? A thousand? If you amortized this and really did the math, Apple would owe you money.
Now that we're headed into the winter, a lot of us will wear a wide selection of coats and jackets. You need one for the football game, and another for skiing. An over coat for work, but a casual wool coat for the weekend. So, when you look in your closet, you realize that you've had many of these items for years. Many of them may have cost between $500 and $2000, and you cringed at the cash register. But if you think about how many days you've worn them, it may turn out to be just $1 a day. You'll have to periodically buy a new one here and there, but don't hesitate. It's the best deal in your closet.
At the start of the new year, several of us will join new health clubs to coincide with a resolution we'll never keep. Gyms are getting fancier than ever with spa-like locker rooms and lap pools. After the tour, they break the news that you have to pay a membership fee and then close to $100 per month or $1200 per year. While at the gym, you'll use treadmills, bikes, and ellipticals. You may use the pool. You'll work on nautilus machines and lift free weights. If you had all this equipment in your house, it would probably be over $15,000. Some of the machines would eventually break, and you'd be responsible for fixing it. At the gym, you just move to a different machine. When you calculate the added health benefit of the exercise, there may be no better deal in the world.
The last very valuable item that consumers consistently bitch about is the cost of their phone/internet/cable package. Everyone moans about the monthly cost and switches their provider every one or two years to get the best deal. In the end, they settle around $150 per month or about $2,000 per year. For this price, you can stay on the phone for an unlimited amount of time with anyone in the country. You can access the internet with lightning speed which in turn gives you access to Facebook, iTunes, You Tube, Google, Yahoo, and Netflix. When you have HBO and Showtime, you can watch high quality shows without commercials and on multiple devices. With the right set up, you can even view the internet on your television, or make a phone call on the internet. In terms of data communication and entertainment, there really isn't anything you can't do. So is $2000 per year really a bad deal to have your entire life On Demand?
So, the next time you think you've found the perfect gift for the perfect price, remember that the best deals out there are already sitting in your house.
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