Jeff Yeager, author of The Cheapskate Next Door and blogger at Wise Bread, shares in an interview the unifying traits of people who are better at spending less than you. One such trait: buying appreciation and letting others pay depreciation.
In an interview with Daily Finance, Yeager shares some insights he obtained while interviewing more than 300 self-professed cheapskates for his book. Along with learning what drives their motivation to spend less and get more use from their goods, Yeager shares a thought process not often seen in a buy-and-toss culture.
Of course, there's also a tremendous economic advantage to, as one cheapskate told me, "letting the other guy pay for depreciation," which is what you're doing, at least to some degree, when you buy used. Most of the cheapskates I interviewed we're also very tuned into the issue of "appreciation," always looking for items that might actually increase in value over time rather than lose value. That's why the Amish, for example, often buy antique furniture. Cheapskates think about appreciation when buying a wide range of consumer products ... cars, furniture, even clothing. Let's face it, most consumers only stop to think about appreciation when they buy a house, and even then, they're often not very smart about it.
What kind of goods do you buy used to avoid depreciation, and what have you bought with an idea of earning more value over time?