Earlier on, I wrote a post about why being stingy in one's expenses is also stupid. I witnessed some of my elders brag about how stingy they are, saying it's "some sacrifice". Sure, it's never ideal for children to get everything they want. However, it's not ideal for children not to be deprived of everything they need. Back on track, I think one of the many misguided things I've had was to assume expensive is always better. Sure, one needs to pay a higher price for better quality. I should expect to pay a higher price when I order tea or coffee from a tea store or coffee shop. However, there are some things in the world that are just plain overpriced.
I would like to use a classic film scene to illustrate a point. As the holidays hit, maybe some people who were either parents or children in the 1990s may remember Jingle All the Way. It's one stupid film that delivers a smart message in some way. It can be a message against last-minute shopping and giving in to peer pressure. There was also the scene where Arnold Schwarzenegger's character Harold entered the warehouse. The crooked Santa charged USD 300.00 for a fake Turbo Man toy. If I'm not wrong, the USD to PHP dollar exchange rate at that time was around PHP 25.00 to PHP 30.00+. I'll just use PHP 27.1429 based on this USD-PHP exchange rate history. That would mean Harold would've been ripped off of PHP 8,142.87 over a bootleg Turbo Man toy if he were a Filipino and not an American! Today, the value of USD 300.00 would be PHP 17,001.00. Sure, the film was full of illogical scenes (such as the bomb not killing the police officer) but it's a satire I love to use to make fun of bad habits. The whole bootleg Turbo Man toy proved that expensive isn't always the best.
Back on the topic, there's always this mentality that one's lifestyle is an indicator of one's wealth (read here). There's that assumption that I had with another former enemy of mine, who's now living a rather modest life. That guy once foolishly said that so and so was richer because so and so had more stuff than me. I also remember some person I'm avoiding due to his toxic attitude. That toxic guy was practically handed over almost everything by his widowed mother and older siblings. The guy doesn't even know the value of money. The toxic guy only seemed rich because he had this and that. Later on, the toxic guy ran into a lot of trouble. People who were once impressed by him gossiped about his fall.
It's a misconception that expensive is always the best. I got into stupid fights with materialistic people because of this and that. I always felt bad that I never had the most expensive luxury cars. Now, I understand that I'm actually spending much less for repairs if I buy middle-priced items. I remember having my laptop fixed and I was glad it wasn't a luxury brand. I hear that some luxury cars aren't fuel-efficient. There are times I hear that expensive clothes and shores are only bought for the brand and not for the quality. I hear that very expensive restaurants don't have good taste. I guess I'm glad I usually skip any restaurant that's unjustifiably expensive. I could understand why I'm spending nearly PHP 700.00 for a goat biryani in an Indian restaurant. It was justifiably expensive because it was a huge serving. What would be stupid if I got charged PHP 5,000.00 for just one plate of food that didn't even taste good.
The Investopedia points out as to why people buy luxury goods:
Are Higher-Priced Goods Really of Higher Quality?
One possible explanation for this is the human tendency to overemphasize the positive elements of a product and ignore its disadvantages. For example, in the case of Apple Inc. (AAPL), consumers wait overnight for new releases of iPhones, iPads, and Mac computers. This despite the fact that Apple products are not technologically unique or superior.
In fact, Samsung makes phones with better features (compared to most models of the iPhone), and Microsoft Corporation (MSFT) and Xiaomi make phones that typically have a cheaper price point. Nevertheless, Apple experiences a high degree of brand loyalty and seems to break sales records year after year.
Because some people perceive non-luxury goods as inferior simply by virtue of them being non-luxury (and not on the basis of their characteristics or qualities), they also come to the irrational conclusion that higher priced goods are of better quality. Contrary to the evidence, they may believe that you get what you pay for, regardless of whether the goods are actually better than their more affordable counterparts.
In my case, I want to go for what I pay for and not how much I pay for. I could go ahead and pay higher for better specifications. I'm willing to spend more money to get the best quality. I can't expect anything that's ridiculously cheap to serve me well. If I had to spend a certain huge sum--I should get what I pay for. I would pay PHP 300.00 for a certain delicious and heavy meal. However, I wouldn't pay PHP 3,000.00 for a meal that turns out to be nothing more than ego inflation. Some places may look fancy but the prices are unjustifiable. Why would I serve regular coffee for the same price as premium coffee? As a person who goes to teahouses and coffee shops (though I put them in the same category), I can understand why their tea and coffee are more expensive. It's higher quality and they have longer operating hours. Meanwhile, a canteen that charges the same price for regular coffee with the same price as premium coffee will turn off people. It's because target markets are very important.
The best way to get the best value is, "Do I get what I'm paying for?" It's all about the value of the money. It's not about how expensive something is but whether or not I was able to get the best out of it. Will spending more now make me save more in the future? Those are important questions I ask myself a lot.