What You Pay and What You Get

I'd like to apply the wise advice, "Price is what you pay; value is what you get", regarding the annual frenzy to buy the latest thing. In this case, an iPhone.

The price to acquire the iPhone is different for each individuals. The people who wait in line the week before pay the highest in price acquisition. There is a loss of income for the week decided not to work, so you factor in the opportunity cost, in addition to the price that you pay, and the total of the phone plan/contract if you'd like to include it. It becomes one expensive phone.

What do you get in value for the expensive purchase? You get a depreciating asset at a rate of:

• Two weeks after a new launch, old iPhones depreciate about 11%.
• Four weeks after launch, they depreciate about 15%.
• Six weeks after launch, they depreciate about 18%.
• By week seven, they lose about 21% of their value.

Can you buy an investment to balance the loss in 7 or more weeks? Probably not.
It's important to accept the truth about what you pay in price and get in value. If you position planned purchases as an investment, it will trigger motivation, help us make a decision, and sort the needs and wants.