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Know When to Spend!

Should You Spend or Save on Your Next Purchase

You shouldn't always buy the cheapest version of a product. There's times when it makes sense to pay for the better quality. I thought this series on whether to save or splurge from CNN Money was great. It ends up being a big advertisement because they promote a product under each category, but I've really been able to use this advice lately. From my flat screen TV to my cordless drill, I've been able to assess my purchase effectively with this advice:

Power Drill

Save or spend: Save

“Professional-grade drills are designed to be used and abused. They're heavier than consumer models, with larger motors and bigger batteries. Unless you're planning to drywall your house, you needn't pay for that speed or power. Tom Silva,contractor on PBS' “This Old House,” says that a $50 cordless drill with a three-eighths-inch chuck can handle most home jobs.”

Television

Save or spend: Save

“These days, LCD and plasma flat-panel TVs offer similar picture quality for similar prices. The X-factor now is resolution, or pixels making up the screen.On both you can get the highest available, 1080p, which has about 2 million pixels. But these TVs run up to $1,000 more than 720p sets (which have 1 million pixels) with the same screen size.And 1080p content is still scarce, warns Ross Rubin, analyst at the NPD Group. Besides, from a normal viewing distance, “the difference is difficult to detect in a TV 50 inches or smaller.” (Most rooms don't call for bigger sets.)”

An Update on My Purchases

My power drill just went out on me. The battery will no longer charge. When I price checked batteries, I found out they are almost as expensive as a whole new drill. So, I'm looking for a new power drill now.

My flat screen TV is doing great. No issues, and it's still just as nice as any other TV I see out there.

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Last Edited: July 25, 2017 @ 5:41 pm
About Philip Taylor

Philip Taylor, aka "PT", is a former practicing CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of FinCon, the conference and community dedicated to helping other financial influencers and brands. He created this website back in 2007 to share his thoughts on money, hold himself accountable, and to meet others passionate about moving toward financial independence.

PT uses Personal Capital to keep track of his financial life. This free software allows him to review his net worth regularly, analyze his investments, and make decisions about his financial future.

PT keeps a portion of his emergency fund in Betterment, the automatic investing tool that makes investing super simple. Betterment focuses on what matters most: savings rate, time in the market, investing costs, and taxes. PT recommends this service to anyone looking to get started investing for themselves.

All the content on this blog is original and created or edited by PT.