Category: Advice

How Do I Know If Something Is Good Value for Money?

You may often hear people say that you need to try to buy things that are good value for money. However, if you are not sure what the phrase means then you might be confused as to what they mean. It is a good idea to have an understanding of it though and then you will be able to make sure that you are getting good value for money.

What does it mean?

There are lots of people that mistakenly think that good value for money means cheap. That is not what it means at all. Good value for money means that you are getting a good return for your money. This means that when you spend the money you feel happy at what you are getting in return. There might be some things we buy that we will never feel we get good value for , perhaps taxes for instance, that we have to pay, but normally we can change what we buy and who we buy from so that we can get better value.

Understanding the value of money.

Why is it important?

It is not easy to get money. Most of us work hard to earn the money that we have and when we spend it we want to feel that we are getting good things in return. If we buy from the very cheapest shops, we may not be that keen on what we buy, we may not like the taste of the food or the items may not last as long. If we pay too much we might feel that the items do you taste that much better, that they do not last that much longer or are not that well made. Therefore, we are looking for things that fall somewhere in the middle. We want items which suit us and we feel are good but we want to still pay a reasonable amount of money for them.

However, value for money is a very personal thing. Let’s take carrots for example. Some people might notice no taste difference between different types of carrots and may be happy to just have the cheapest ones or they may just use them in dishes where they use sauces to cover the flavour anyway. However, some people might really notice the difference in taste and want particular ones. Some people might want to buy organic as they feel they are healthier. Some people might want to buy locally grown to support local business. There are all sorts of reasons why people might make particular decisions and they will all change whether they feel they are getting good value for money.

How do I tell?

So, knowing whether something is good value for money for you will depend on you and your expectations. Remember that brand should not be a factor as that does not always determine the value, sometimes you pay more for a brand name and it may not be as good as a non-branded item. However, if you know that you like a particular brand then you might want to continue using them. If you are judging something fairly cheap, like the carrots then you can try different types and make up your own mind. However, if you are judging, lenders, makes of car, houses or holidays then it is harder and much more expensive to try out lots before making up your mind. Therefore, in some cases we have to rely on speaking to other people about their experiences and reading reviews to help us to make the right choices. This can be trickier but it is still worth it as it could make a big difference.