Why Value is More Important than Price
When it comes to making financial decisions, the price has become our most important consideration. Rather than making conscious choices about the things that we want, we allow prices to make decisions for us. We don’t realize that the price is also determined by the value provided by any product. Value is more important than price because it tells us the overall worth or usefulness of something in our life.
For every purchase, there are three measures of worth: Price, Cost, and Value. Price is the dollar amount that you pay. Cost is how a purchase affects you economically. The only measure worth considering is if the value you place on a purchase is greater than the cost. Here value mainly refers to quality and utility.
The word “value” is not only limited to a product or services, perhaps it can be used in all the context of our life. It influences our financial condition, happiness, productivity, and prosperity at large. People with true wealth are true value creators; they never intentionally constrain or deceive anyone.
Which thing provides more value to your life – money, happiness, prosperity, or abundance? Let’s explore why value is more important and try to answer this question after going through this article.
Power of Value Creation
The path to real prosperity is value creation. Exchanging value in terms of goods and services creates wealth for everyone. The creation of value is what we should be seeking in order to create true prosperity. If we utilize our potential to be prosperous, we create maximum value for ourselves and for other people. Money is also a by-product of value creation, representing the exchange of value between people.
Any material object is nothing but a reflection of value creation among people. We must recognize the power of value creation and how it promotes our own prosperity and prosperity for others. Since currency is a representation of value, the more value you provide for others, the more currency will flow into your life.
Human Life Value
Human life value is a combination of knowledge, skills, abilities, and relationship that you have. These qualities let you produce value for others and yourself. The more you increase your human life value, the more value you will generate for others and receive in return. This is the source of all money, prosperity, and progress.
Our passion and soul purpose is also a vital part of our human life value. When you truly found your passion, you create so much value for others and indeed earn a very great amount for that value. We can have anything and everything we want, if we can just be creative and maximize our productivity.
Destructive Nature of Price
Price is a deceptive measure that artificially limits our choices. To break out of the price trap requires a greater level of conscious awareness and personal responsibility. The best way to get outside of this trap is to learn how to boost our value-producing abilities.
The human mind is incredibly powerful, yet it must be consistently trained in order to leverage its limitless capacity. An excellent way to facilitate this mental discipline is to consistently ask ourselves the right questions. Our brain is designed to answer all the questions fired on it. By learning to consistently ask the right questions, we can acquire the power we never knew we had.
While Making Financial Decisions
Excessively magnifying the role of price in our financial decisions limits our potential and destroys our human life value because it dictates our decisions and pulls our focus away from productivity. Instead of focusing on the price of items, the primary factor of all of our financial decisions should be value.
Price is a small piece of a large picture. Our financial decisions should be based on the large picture, through a holistic process that considers every aspect of our financial puzzle. To be financially successful, we must stop focusing on price and instead focus on providing services that other people value. Price should always come after the value has been considered.
While Making a Purchase
The most important thing to consider with all of our purchases should be value, with the backing of productivity. The more we focus on value and quality, the more productive we can be. When we ignore value and base our decisions on price, we allow ourselves to be preyed upon by mediocre products and services. We paint our lives, our abilities, and our potential into little boxes that are completely based on our current level of income.
It’s obvious that if we’re comparing two items with equal value then we should choose the less expensive item. What should we consider while purchasing a laptop, Value, or Price? The cheaper laptop might be much slower, and that fact alone could decrease my productivity. I could have accomplished more with a better laptop.
Savers & Spenders
Both savers and spenders are the flip sides of the same coin. Both make the majority of their financial decisions based on price. Neither spenders nor savers focus on productivity – the spender is an excessive waster of productivity, while the saver remains too busy in conserving productivity. Spenders exceed their current productivity, while savers suffer from considerable amounts of unused and unutilized potential.
Neither of these types is focused on how they can create value in the world, spenders consume value, and savers reserve value. Utilizing money is one critical way to create in the world. Money is never expressed and exchanged until a value is created. A person must pay attention to create more value and increase productivity instead of focusing on the fear of spending. When we focus on productivity and utilization, as opposed to saving or spending, we begin to think differently.
When we focus on price at the expense of value, we create a market for mediocrity that affects every other aspect of life. Recognizing that value is more important than price makes us more productive and increases the quality of our life.
Instead of taking responsibility to create our ideal lives, we are habitual of allowing prices to dictate the quality of our lives. We have to conquer all the misperceptions that are harming our ability to create value in the world.
We have to take responsibility and utilize our assets now to create value for ourselves and others. Through conscious decisions, we can become capable of choosing quality, value, and utility over price.