Value and cost are two terms you should be fully aware of and should understand as pertaining to money as well as your life.
Value is how much usefulness or pleasure an individual gets from a commodity or service. For instance if you don’t have a dishwasher and you get one installed in your house. After you get the dishwasher the value resides in you not having to devote a significant amount of time to wash dishes. You now have a dishwasher that has brought an enormous amount of value to your home allowing you to do other things with the time you were spending washing dished to do something else.
Cost is how much you have to pay in order to make the goods. Inputs like land, labor, and capital for producing any product. For instance when you have a business and you sell something like t shirts. The cost of the t-shirts, printing, as well as transporting them is the cost. The value lies with the individual and the worth it created for them.
I explain these terms interchangeably because I want to make a case and point about value and cost when it comes to life. When you take a look at a star like Jay z you see the nice things that he has right? Well when you notice those things you are looking at the cost and you know it’s all expensive right? Well what folks actually want to look at is his value! This is where the term value creeps in. You want to make sure that what he does adds value to your life if you are to pay a price for it. When making decisions and living life we want to automatically assume that because a person has attained a certain amount of material things then they are successful. A lot of individuals do not look at what is actually cost to get to that value level.
I try and equate cost and value to a lot of aspect in my life. When I look at certain relationships with people I see that if I spend a lot of time with this person who is smart and is very proficient in their field that I am interested in then I assign a very high value to that individual. If the cost of being around that person is too high, say for instance this person does not inspire you but only give you information that you can be better at life with. Then you have to be the person to be able to gauge the cost of being around and individual versus the value that they bring to your life. If the value of a person is higher than the cost then you have done well. I’m not saying you can apply this or should apply this to ever situation. I just want it to be a basis and to though provoke anyone when it comes to cost and value.
Know that cost and value apply in the financial world but in translated to other things as well they all intermingle and they all are related in some way or another. Be smart and be able to connect the dots.
I think that when it comes to cost and value then some people need to recognize that when you place e a certain amount on certain thing then you become a slave to this very thing. Always look further into things and analyze and don’t take everything for face value. Analyze realize what’s right before your eyes!