The Virtues of Buying Used

In the book about millionaires that I read, one thing fascinated me to no end. They buy used stuff!!

There are 2 basic types of millionaires - the self-made ones and the inherited-tons-of-money ones. It is the former that has this incredible habit of buying used items. And because of that, among other things, they last longer as millionaires. The "inheritance" millionaires don't do so well in the endurance test.

It makes a lot of sense. Buying used items, even though you can afford new ones, saves you a lot of money. Case in point. Buying a car. It is well established that the moment you drive your sparkling brand new car out of the showroom, the car would lose 10% in value. So, if you can find a 6-months old car, which I gather would be as good as new, you would save more than 10%. Same thing with watches. If you can get a 1 year old Rolex, you will save at least 10%. And watches of Rolex caliber can last for generations, so what is 12 months on somebody else's wrist. Same principle applies on a lot things. If you happen to like guitars, like I do, you can get a brand new Fender American Stratocaster for RM8k or a 5-year old Strat for RM3k. And as an added bonus, some things get better with age (like the guitars).

Another fascinating habit of the self-made millionaires is that when they buy new, they will always buys things on sale. No discounts, no deal. That Armani suit looks good. No special offer at 40% discount, no deal. That ASICS running shoes look really nice and comfy. No 30% less, no deal. If the millionaires have this habit, what of us mere mortals. If it saves you money, it's a good habit to have. And it is a habit that is quite easy to internalize. At anytime of the year, go to a shopping mall, you would find it very difficult not to find a store not on sale. And better still, go on a shopping spree during the Big Malaysia Sale.

I believe a big part of the reason why people refused to buy used or wait for sales is that little thing called ego. You want to feel good buying new stuff. It is the latest thing, so you can't wait for the sales. No wonder forward-thinking people called ego "expensive". If you have this trait, like sometimes I do, try this. Go to a used clothing store (we called it a bundled shop here in Kuching), and buy yourself a used t-shirt. Go home and washed it and then wear it. It will do you a world of good to tame that little thing called ego.

And imagine all that money you will eventually save.....