Why Chasing Cheap Could Be Your Most Expensive Mistake

Growing up, I was obsessed with finding the cheapest price for everything. I’d calculate price per ounce at grocery stores and set bizarre budget limits for dates. I was that guy who turned off the heat in winter to save a few bucks. But after years of working with wealthy clients and building my own success, I’ve learned a powerful truth: the wealthy don’t ask what’s cheapest—they focus on where they can find the greatest value. This shift in mindset could completely transform your financial future. If you’re stuck in the scarcity trap of always chasing the lowest price, you might be sabotaging your path to true wealth.

The Value Equation: What Things Are Really Worth

Here’s something that might blow your mind: when you pay a price for something, the one thing it’s not worth is that price. Think about it—if you buy pants for $40, you do so because you believe they’re worth more than $40 to you. Meanwhile, the store sells them because they believe the pants are worth less than the $40 they’re getting from you. This creates a win-win transaction. You value the pants more than the money, and they value the money more than the pants. The actual worth isn’t the price tag—it’s the value each party places on what they’re giving up versus what they’re getting. The same principle applies to bigger purchases. If someone sells you a house for $500,000, they believe it’s worth slightly less than that amount, while you believe it’s worth slightly more. The true value exists in this perception gap.

My Blender Revelation

I remember buying cheap $20 blenders that would break within a year and couldn’t even properly crush ice. When I first saw a Blendtec for $300, I was shocked at the price. Why would anyone pay that much for a blender? But after seeing it in action and eventually buying one, I discovered the true value. After more than a thousand uses, when it finally had issues, the company replaced it. Meanwhile, I would have gone through 15 cheap blenders in that same timeframe. Was it worth paying 15 times more upfront? Absolutely. The quality, reliability, and service I received delivered far more value than the price difference.

Value Creates Wealth, Price Consciousness Creates Limitations

I find it fascinating how business owners will drop tens of thousands of dollars on something they believe will increase their revenue, yet balk at smaller personal expenses. This inconsistency reveals how our perception of value shifts based on context. One of my multi-millionaire clients spent 10-20 hours weekly analyzing real estate deals himself. After joining our program, he texted me: “You guys are incredible. Thank you.” His calculator showed $800,000 more in passive income after implementing our strategies. For him, paying tens of thousands for our expertise became a no-brainer compared to:

• The time he was wasting doing it himself
• The opportunity cost of missed deals
• The potential mistakes from lack of specialized knowledge

Compare this to people who pay financial advisors 1% annually ($10,000 on a million-dollar portfolio) for minimal value. These advisors often collect fees regardless of performance, while we only charge if we can demonstrate we’ll make clients more than our fee in the first year.

Applying This Mindset to Your Life

You might be thinking, “But Chris, I don’t have much money to make these kinds of decisions.” That’s fine—take the principle and apply it to your own situation. Maybe it’s not about spending $40 on a meal but $5 or $10. Ask yourself these questions with every purchase:

1. What am I getting for this price?
2. Will choosing the cheaper option cost me more in the long run?
3. Is the quality worth the price difference?
4. What’s the true return on investment here?

I apply this thinking to everything from food choices to running shoes to business investments. Even my “non-productive” spending on running gear and massages provides value through health benefits and enjoyment—a different kind of ROI. Stop focusing only on price. Focus on value first, price second. That’s what successful people do. That’s what abundant people do. And that’s how you become wealthy. Don’t get caught up in what you’re paying in dollars and cents. Instead, ask: “What am I getting? How can I get the best value, not just the best price?” Make this shift, and watch how it transforms your financial decisions—and ultimately, your financial future.

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Frequently Asked Questions

Q: How can I determine if something is actually worth the higher price?

Consider the total cost of ownership, not just the purchase price. Factor in durability, maintenance costs, time savings, and quality of experience. Ask yourself if the cheaper alternative will need replacement sooner or cause other expenses. Sometimes writing out a simple comparison of total benefits versus total costs can make the value proposition clear.

Q: Isn’t being frugal an important part of building wealth?

Being mindful of spending is certainly important, but there’s a difference between frugality and a scarcity mindset. Smart wealth-builders are selective—they spend freely on high-value items that improve their quality of life or create more wealth, while cutting costs ruthlessly on things that don’t matter to them. The key is intentional spending based on value, not automatic penny-pinching.

Q: What areas of life should I prioritize value over price?

Prioritize value in areas that directly impact your earning potential, health, and major time investments. This includes education, professional services (like accounting or legal help), tools you use daily, health-related expenses, and investments in your business. These are areas where cutting corners often leads to much higher costs down the road.

Q: How do I break out of the “cheapest option” mindset if I’ve been in it for years?

Start small by experimenting with one purchase where you choose value over price. Track the results and satisfaction over time. Also, practice calculating the “cost per use” rather than just the upfront price—a $300 item used 300 times costs $1 per use, while a $30 item used 10 times costs $3 per use. Finally, spend time with people who have an abundance mindset to help shift your perspective on money and value.