It has always fascinated me how people, living in the richest nation on earth, struggle with financial problems when the opportunity to achieve success and acquire wealth is on everyone’s doorstep.
There are many reasons why. Consider these two points of view.
Let’s say two couples, each with $350, want to buy a dynamic new learning program, such as a weekend conference that costs $400 plus $500 in travel expenses.
Couple One – they might see the price as out-of-reach, thinking “Hmm, We are $550 short, so I guess we can’t afford it and we won’t go.” They pass without much more thought.
Whereas Couple Two, possessing greater vision, might say, “Well, I may only have $350, but I can see the potential to make tens of thousands if we go to the Seminar, acquire that knowledge, and apply it. So although I’m $550 short, I’ll find a way to come up with the difference… even if I have to borrow, sacrifice, and struggle… because it’s an investment in our future, our greater success and income later… and that future income will pay for the price of the program many times over.”
Financial decisions should be about changing your purchasing criteria. Rather than basing it on cost vs. available dollars… base it instead on potential long-term value gained vs. available dollars.
If the value is there, don’t give up. Maybe you should FIND the money you don’t have, even if you have to risk going into debt for a short while.
Don’t get me wrong - paying in cash, in full, beats borrowing. But an investment in your knowledge and future income growth when the full amount isn’t readily available doesn’t always have to mean walking away.
When an investment is in yourself – purchasing it on a credit card, and suffering with payments over several months, even at a high interest rate could still be a powerful investment. When you grow your knowledge, you are investing in your future. When I have invested in myself, I always achieve the greatest return. What choice do I have? To not invest - I will always be where I am verses to invest – I open the possibility for growth, success and a better future. When I am confident that I will reap the benefits, those credit card payments just become a reminder of my investment in myself and how I need to apply the knowledge.
However if long-term value will not be gained – then walk away from the deal – even if you had more than enough to cover the cost.
Not grasping this rudimentary concept in a reason so many people living paycheck to paycheck… and missing opportunities for greater income and wealth creation.
It even sabotages companies when some leaders can’t see the broader visionary picture of the dollars they spend.
ACTIONS FOR YOU
Why not re-think your own buying strategies on major opportunity purchases, educational expenses, software programs, and a product that saves time, or reduces an expense somewhere else.
When cell phones first came out, many people -- even businesses -- couldn’t justify the monthly expense. A great radio commercial is an example of greater vision thinking. A plumber who had purchased a cell phone explained that it allowed him to place and receive customer calls anytime, anywhere, or any place. He never missed a customer call and explained that “Just one leaky elbow joint and that sucker’s paid for.”
Brilliant expansive thinking of the extended value return of knowledge or a product. He justified the purchase and it expanded his income. How do you think about an investment in yourself or business?
The payback is not always money. It might come in another form… maybe intangible… like establishing a new relationship, expanding a current relationship, building credibility, gaining influence in a new area, or prestige with important people, maybe even a door-opener to yet another opportunity.
The late motivational icon and sales trainer Zig Ziglar tells the story of the couple who could afford a $300,000 house, and found one they loved with a few extra amenities. But it cost $340,000. Unable to see the bigger picture, they walked away dejected, agonizing that they could never afford a $340,000 house. Zig stopped them and said: Wait. This is only a $40,000 decision… you’ve already made the $300,000 buying decision.
Are you missing great opportunities because of short-sighted affordability thinking?