I replaced my car earlier this year. While the COE felt rather expensive to me at that time, I reasoned with myself that I had been saving my money with a plan of getting a car. If I delayed my purchase because 'price can go lower' I would be embarking on a speculation exercise whereas the car purchase was a long term purchase. I was also worried that my old car would break down which would be a hassle (have to repair before trading in).
I sort of see a (bad) analogy with stock market investment here, but I hope the point gets across. High can get higher, low can get lower. If you plan to wait for a better buying or selling price, ask yourself what is your objective and what is your plan. If you have no plan or objective, then you are at the mercy of the idle chatter and 'noise' on the internet saying market going to crash and a recession coming.
Completely agree! Actions should be guided by objective and plan and what is acceptable to us, not on things that we cannot control or reasonably predict. I learned the hard way so much times.
ReplyDeleteA recent example is booking of my flight. I was hoping the price would drop, while the reasonable prediction would be that it will go up. So it went up and I booked. The cost is money and time / energy / emotions wasted checking the flights repeatedly.
Good lesson learned. Unfortunately it was not the first time. I will make it the last time.