Today’s a quickie but goodie for you ;)
I’ve heard of buying stocks from places you love and use every day (in fact, I did this myself back in the day!), but never thought of buying the stocks *instead* of the product before. Or at least while you’re saving up for it…
From Chandrashekhar on our post about controversial finance beliefs:
If you’re planning a large expense, buy shares worth that expense in that industry/company before making the spend.
For instance, if you’re looking to buy the latest iPhone, buy Apple shares worth that phone and see if you still want to buy the phone… That way, you tend to reduce unnecessary expenses while building a decent portfolio to rely on.
Love it! Not only does this make you WAIT and SAVE UP for the purchase first – a good thing to do on its own – but it also gets you into the habit of INVESTING more and probably holding onto the stocks at the end of the day as it’s never fun cashing out of stuff like that.
Now this wouldn’t work on things like cars or houses or other major purchases unless you’re a baller, but every day stuff $1,000-$2,000 or less? Sure! Most people don’t have that just laying around, so “saving up” by investing along the way would make for a great way to motivate yourself whether you end up pulling the trigger or not.
Delayed gratification is a great thing! And perhaps you even end up with both the product AND some extra stock by the time you have enough?
As my friend Mabel likes to say – “if you can afford the product, you can afford the stock!” Something to consider the next time you go to whip out that credit card :)