Introduction
We all have a common habit of buying cheap things. What happens? Look at a store or an online shop, there are two options for a product:
- One branded or a little expensive, let’s say $80.
- And a cheap version, for $25.
And naturally we think: “Oh friend, let’s buy the one for $25… it will do the job.”
But the point is that it will not do the job. In the long term, cheap purchases make you spend more money. This is “The Hidden Cost of Cheap Purchases.”
Chapter 1: The False Economy of Cheapness
Take a simple example:
Suppose you bought a pair of shoes for $30 because the branded ones cost $90.
Cheap shoes may last for one season. Next season the sole came off, the stitching got spoiled, and now you will have to buy new shoes again. That means $30 + $30 = $60.
On the other hand, if you had bought branded shoes for $90, they would have easily lasted for 3–4 years.
In the long run, branded shoes cost less, cheap ones cost more.
This is called false economy — short-term saving which becomes long-term loss.
Chapter 2: Cheap vs. Value There’s a Big Difference
It’s important to understand an important difference here:
- Cheap = just a low price.
- Value = the ratio of quality and life span to price.
Example:
A $40 backpack and a $100 backpack. A cheap backpack will probably wear out in a year. A $100 backpack will easily last 5–6 years. If you calculate the cost per year:
- Cheap backpack = $40 per year.
- Expensive backpack = $100 ÷ 6 = $16 per year.
See the difference? By paying more, you actually save in the long-term.
Chapter 3: The Psychology Behind Buying Cheap
Now the question arises: Why do we buy cheap things?
- Instant Gratification – Cheap items seem easy, buy them immediately.
- Fear of Overspending – It seems expensive waste.
- Illusion of Savings – We feel happy thinking “I saved $50”.
But the real savings happen when you do not have to replace things again and again.
Chapter 4: Hidden Costs Nobody Talks About
Cheap purchases are not just about the price of the product, they also come with other costs:
- Time Cost Search for replacements every day, go shopping.
- Stress Cost Frustration when a product breaks down quickly.
- Opportunity Cost The money spent on replacing it repeatedly grows significantly if invested.
Example:
A cheap $20 pair of headphones breaks down every 6 months. You spend $200 in 5 years. If you buy high-quality headphones for $100 initially, they would still be working. And if you invest the extra $100 in the stock market, you could earn $150-$200.
Chapter 5: Real-Life Examples
1. Kitchen Appliances
Bought a cheap $25 blender, motor burned out in 6 months. Had to buy another one. 4 blenders in 2 years = $100. If you bought a branded blender for $80 once, it would still be working.
2. Clothing
Bought fast fashion T-shirts for $10 and their shape got spoilt in 3-4 washes. Branded $40 T-shirt lasted 3 years.
3. Furniture
Bought a cheap table for $100, it started to wobble in a year. Had to replace it. If you bought a solid table for $350, it would have lasted 10+ years.
Chapter 6: The Cost of Per Use Math
This is a simple formula that can help you change your life:
Cost Per Use = (Total Price ÷ Number of Uses)
Example:
- If you use a $20 jean for 10 times it will be $2 per use.
- Expensive $80 jeans that you wear 200 times = $0.40 per use.
Get it? What seemed expensive was actually cheap.
Chapter 7: Cheap Purchases & Sustainability
Not only is money lost, cheap purchases also damage the planet:
- Fast fashion creates landfill waste.
- Cheap electronics create toxic e-waste.
- Constant replacement wastes resources.
Meaning the environment also suffers along with your wallet.
Chapter 8: When Cheap is Actually Smart
Not every cheap purchase is wrong. Smart things are when cheap will work and when not.
- Go Cheap On: Trendy clothes that are for one season, basic kitchen tools, short-term use items.
- Go Quality On: Shoes, mattress, laptop, furniture, headphones — basically things that are used daily and matter long-term.
Chapter 9: How to Break the Cheap Habit
- Think Cost-Per-Year, Not Price Tag: Calculate the per year cost of an expensive item.
- Wait 24 Hours Before Buying: Avoid impulse buying.
- Set a Quality Budget: Instead of buying 5 cheap cheeses, get one quality product.
- Research Before Purchase: look at reviews, look at warranty.
Final Thoughts
It is certainly tempting to buy cheap. But remember:
- Cheap = Short-term satisfaction.
- Quality = Long-term savings + peace of mind.
Your financial health depends not only on “how much money is saved” but also on “how much money is saved from being wasted”.
So next time whenever you get a cheap and an expensive option – pause for a second and think:
“How many years will this product last me? And what will be its cost-per-use?”
You will see for yourself that cheap things are expensive.
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