In the last week of April I was recovering from dental surgery. The first step of a very expensive procedure was to remove a tooth that could no longer be salvaged.
Unfortunately, our current dental coverage will not cover more than a small percentage of the cost, which if I proceed will leave me out of pocket many thousands of dollars for a dental implant.
What do replacing teeth have to do with personal financial management? The crucial question is: Do we as consumers evaluate the worth of what we buy? If we even do, is it objectively and rationally or emotionally and irrationally? Let me continue on with my train of thought with the tooth story.
My cost to get a dental implant is equal to or more than a European vacation for 2. Or that same cost would enable me to get my next car sooner. In my case that is a big deal because my car has a shortened life span.
To me either of these options is far more attractive than a fake molar. So I dither and hesitate. Sure, if I was a millionaire, price would be of no object. But all of us must make trade offs. A question posed in one of my professional magazines went something like this: If I buy this______ today, what will I NOT be able to buy next week or next year or 5 years from now? Or do we only suffer regret when we get to that point in time later? Or blame our lousy salaries?
Could you give up 400 caramel machiattos for a trip to Vancouver, or a new couch? Does saving for retirement seem far less appealing than eating out at Charcut every Saturday night?
With that in mind I will conclude my newsletter with a video and two links. My video is based on Preet Banerjee’s TED talk, which if you don’t have time to watch the whole thing please watch the first 5 minutes. Or get the gist from my video which is just over 2 minutes.
Sometimes a third party article can get the point across much better than I can. I want you to check these links so that you can experience some cognitive dissonance. Kind of like a tiny earthquake to freshen up your long held perspectives on money and how you save and spend it. I am committed to your financial success and it helps to explore avenues yet unseen.