Daily Money Minute

Fotolia_54867638_XS_7“It’s a very sobering feeling to be up in space and realise that one’s safety factor was determined by the lowest bidder on a government contract.” ~Alan Shepard

If you’re unfamiliar with the name, the late Alan Shepard was a US naval aviator and NASA astronaut who in 1961 became the second person, and the first American, to travel into space. He also commanded the Apollo 14 mission to the Moon in 1971. His comment here is a reminder of the difference between price and value. Price is what you pay but value is what you get. Going for the lowest price only makes sense if, in doing so, you’re still getting all the value you actually need. Generally you get what you pay for, so an item with the lowest price is usually priced that way because it is of inferior quality. That’s not always the case I know but certainly it is usually the case in my experience. So when making purchases, it’s essential to know what you really need in terms of quality and value. Don’t spend a lot of money on something of high value if a cheap and cheerful alternative will do the job just as well. However never compromise on quality when you need to be sure that your purchase will fulfil your needs in every way. For instance if I was buying a car to transport children around then I would want all the safety features. They come at a price of course but it is money well spent. Yes it’s true that you can only spend within your budget and sometimes a trade-off has to be made. However when making a trade-off it’s important to know which features you can live without if necessary and which features you absolutely must have. Never compromise on the things that really matter.

© RJ Sutton and Mann Island Media Limited 2014. All Rights Reserved.


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