Let’s talk about price and value, two concepts that are confused much more often than you’d think!
Price: the quantity of one thing (usually currency) that is exchanged or demanded in barter or sale.
Value: the relative worth, utility or importance of a thing.
The thing about value is that it’s relative, compared to any number of other factors. You might not ordinarily value a cheap umbrella, for example, at more than $5. But if you’re caught unexpectedly in a downpour, the value of that umbrella probably just doubled to $10. Excluding environmental factors (I thought that was a good illustration), value is highly personal, especially when it comes to fashion.
When contemplating a purchase, try to take into account the following points if you are struggling to decide whether you should spend:
Point #1
How critical is the item to your wardrobe? If you really need a black pencil skirt for work and don’t have any others, you might consider spending more ($100+) on a really nice piece from J. Crew. However, if you already have several similar skirts, the value is not as high.
Point #2
How much will you be able to use the item? Calculate "lifetime value” by dividing the cost by the expected number of uses. A new MICHAEL Michael Kors watch may cost $200, but if you wear it only two days a week for three years, that comes out to only $0.64 per use. That’s great value! I've had this Michael Kors watch since 2006 and now the brand offers dozens of styles in gold, silver, tortoise, etc!
Point #1
How critical is the item to your wardrobe? If you really need a black pencil skirt for work and don’t have any others, you might consider spending more ($100+) on a really nice piece from J. Crew. However, if you already have several similar skirts, the value is not as high.
Point #2
Point #3
How much do you love it? I understand that sometimes we encounter that bag, blouse or bracelet that you feel must have been made just for you. If you feel that something really represents your sense of style, the value is higher.
You’ll need to also keep in mind that no matter the price or value, don’t buy anything if you really can’t afford it. What’s most valuable is your financial security – and the ability to pay the rent! See my list of “Budgeting Basics” for an idea about how to save for higher-value items.
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