Finding Value

Value can mean a lot of different things depending on usage, so I’ll start with a general definition of the term as it relates to the frugal life. Value simply means that every one of our hard-earned dollars is spent on goods or services that not only meets a need but is useful, durable and most importantly at the best price point possible. Value absolutely does not equate to the term “cheap” by any stretch!

Why is value important? Because introducing materials and services of little value in our life sucks away hard come by resources in a hurry! Finding value is extremely important in frugal living. I’d venture to say most frugal folk surround themselves with valuable goods. You won’t find a bunch of junk in the home of the frugal person! While you may be shocked to see a high-end model of a particular item in the home of a frugal person, it’s pretty safe to assume the frugal person secured that need at a great value.

How does a frugal person find value? Every acquisition of a good or service must be a deliberate process. Generally speaking, making snap decisions about the acquisition of needs won’t lead to good value but rather a home full of useless, broken and overpriced stuff! 

First and foremost, the requirements for the need must be clearly identified. This will include specifications of the item as well as what you are willing to spend. After requirements are established, comes the tedious part, research and comparison.

Research can be thought of as “shopping”. This can be online, at a store, flea market, you name it. Research not only includes digging up the specifications of an item or going to a point of sale to examine it more closely, maybe even test driving. Research also encompasses gathering reviews about the item under consideration. Important for this step is finding several candidate items to compare. Once a short list of candidates is established, then comes the comparison.

Each item is compared relative to an established set of criteria, usually developed from the requirements. For instance, a requirement may be that a vehicle can seat five. The assessment criteria may be more pointed to include leg or head room in order to pick a clear winner. The assessment is relative to the other items under consideration. If one vehicle has better leg room than the others, it is the winner in that one particular criteria. There will most likely be numerous criteria to compare, especially for the big purchases!

This week’s featured pic is an example of what in the Army we called a “decision matrix” modified to compare cars. It could just as easily be renamed the value seeking tool! Don’t laugh, I’ve actually made these matrixes when house and car shopping. Once a comparison is completed the item that scores highest in the criteria is obviously the best value. While it may not be the cheapest, it will hold the most value which is most important in the long run.

One can’t perform such a methodical analysis before every purchase, but you get the idea. Some sort of research and comparison must occur to determine value before making a purchase. Snap purchases seldom lead to good value; the more methodical the better! Just slow down to find the most useful, durable and best price point. Those goods aren’t going anywhere!

Finding value is a key element of living frugally. Not just in goods and services but relationships, careers etc. Far be it from me to delve into those aspects of life, however, the same three steps described above can be applied to just about anything.

Looking for a good how-to on wealth building? Check out my book, Millionaire on a Worker’s Budget: Five Financial Truth’s to Build Wealth on sale now at Amazon!

Interested in rental property investing? Look for Collect Rent, Don’t Pay It: A Beginner’s Guide to Rental Property Investing on Amazon to learn how our family turned rental property investing into a successful side hustle!

Look for, Being Frugal, a Truth to Build Wealth, coming to Amazon in early 2025!

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