Bad purchases

A bad previous purchase shouldn’t cause future bad purchases.

As an example, if you spent a lot of money on a bad software program you might be tempted to stay with that program because it cost so much up front. The problem with this type of thinking is that it frequently results in more money being spent on something bad rather than switching over to something new. If the original software cost $10,000 and there is also a recurring fee, people tend to stay with it, even if it’s bad, because they have $10,000 already “invested” in the program. The faulty reasoning here is that it’s not an investment rather, it’s an expense and once spent, it’s gone. It makes more sense to figure out what is the best way to go forward rather than worry about bad decisions in the past.

Have a great day!

Lawrence

Leave a Reply

Your email address will not be published. Required fields are marked *