Workshop Five

📘 What You’ll Learn

Smart spending means matching purchases to your goals and budget, maximizing value, and avoiding debt traps.

1) Needs vs. Wants

• Needs = essentials (housing, basic food, medicine, transport)
• Wants = nice-to-have (upgrades, entertainment, brand premiums)

2) Opportunity Cost

Every choice costs you the next-best thing you could have done with that money. Ask: “If I spend here, what am I giving up?”

3) Comparison Shopping & Unit Price

• Compare unit price (cost per ounce, per count, per GB).
• Check return policies, warranties, and shipping/taxes.

4) Total Cost of Ownership (TCO)

It’s not just sticker price. Include maintenance, accessories, subscriptions, replacement parts, energy/usage costs, and fees.

5) Avoiding Impulse Buys

• Use the 24-hour rule for non-essentials.
• Shop with a list; turn off “1-click” and saved cards in browsers.
• Ignore “Only 10 left!” or countdown timers designed to rush you.

6) Subscription Smarts

• Audit monthly and cancel what you don’t use.
• Beware free trials that convert—set reminders.

7) Buy vs. Rent (Cost-Per-Use)

If you’ll rarely use something (e.g., a specialty tool), renting or borrowing often beats buying.

8) Quick Decision Checklist

• Does it fit my budget and goals?
• Is it a need or a want?
• What’s the opportunity cost?
• Have I checked unit price, TCO, and return policy?
• Did I wait 24 hours (for non-essentials)?