Would you trade your wedding ring for a new BMW? What about to rent out DisneyWorld for a day? What about to give your family enough food to live on for a week? I’m guess most people will say no, no, of course. The answer is pretty obvious. Your spouse would probably leave you right there if you traded your wing for a shiny toy or a day at DisneyWorld. But to feed your family? You would sacrifice anything to feed them. And maybe DisneyWorld is too good to pass up. The wife won’t notice a replica, right?
Would you pay $6,000 for a new BMW? What about to rent out DisneyWorld for a day? What about to give your family enough food to live on for a week? Who wouldn’t say yes to all 3? $6,000 is a great deal for a car and an insane deal to rent out DisneyWorld for a day. Personally, I’d feel really angry about having to pay $6,000 to feed my family for a week. I would feel ripped off and betrayed by whatever evil merchant would jack up the price so much.
The average cost of a wedding ring is around $6,000. So you’ll pay $6,000 for a wedding ring and pay $6,000 for a car, but won’t trade the wedding ring for a car.
This is illogical! But it’s how people work. A wedding ring is more than just a ring. It carries sentimental value with it. It represents the strength of the one you’re chosen as your life partner. To trade something like that for a car seems sad, cheap, and disrespectful. On the other hand, you likely value your family more than a ring. So if you have to, you’ll give it away in a heartbeat to save them. So why might you be willing to give $6,000 for a new car but will not give up your wedding ring worth $6,000?
Money has no value
That felt weird to write. But it’s true. Money doesn’t have any value at all. A credit card is just a number backed by a piece of paper. Nowadays, that paper is backed by…nothing. Money is a tool that we use to judge value. Objects have value. Services have value. Experiences have value. Money is the tool we use to handle the transfer of everything.
How can you use this to your advantage?
Take the other side! Find value where somebody else doesn’t see it.
Mr. Money Mustache hits the nail on the head with this tweet. He poses the question on whether or not it’s a good idea to buy a used Nissan leaf. In LA, they are going for $8,500 for a 2011 model. This was a $35,000 car! See it for yourself here. The perceived value of this car has dropped tremendously since the price of oil has dropped so dramatically. Lots of people see cheap gas and want to buy up the newest gas hog.
There is a deal to be made here.
- Gas is unlikely to stay this low forever.
- Electric cars are the way of the future.
- The same people selling these cars now are likely to be clamoring to sell their new gas guzzler if the price of gas does rise again.
Sell engagement rings! The sentimental value of a wedding ring makes it a terrible investment. The markup on engagement rings is horrendous. You’ll be lucky to get even 25% of the value. Since there is such bad value for the reseller, that means there is a great value for the original seller. Maybe it’s time to think outside of the box and take the other side.
If your spouse ever does ask you if you would sell your wedding ring, the real correct answer is to make a loud noise (to cause distraction) and RUN!