by : Mike McGrath

There is no sure thing when it comes to buying value. Stocks may go up or down; real estate may go up and down and almost anything may go up or down. Still, there are some things that we can predict with a great deal of certainty. For example, if you buy a piece of technology such as a computer or television it will rapidly decrease in value. And if you wait to buy a piece of technology, it is likely to decrease in cost. I call this value drift, because one way or another, these objects will lose value.

This is true of other things as well. Things like cars, vacuum cleaners, golf clubs and tennis racquets that see a "new and improved" model every year or so are likely to decrease in value rather quickly. This is not always a bad thing. If you pine for the Whammit Model 2 driver that costs $399, you can probably wait a year until the Model 3 comes out and buy your Model 2 for $199. If you avoided the lines when the iPhone first came out and waited a few weeks, you saved $200. The key to dealing with value drift is to develop specifications for what you need and be patient.

The Budget Doctor's prescription for dealing with value drift:

1. Plan your purchases to meet a specific need. If you need a new cell phone or computer replacement, write down your required needs before you visit the stores. It isn't about what's available; it is about what you need and if you never leave Oklahoma you don't need international cell phone coverage.

2. Write down the features you need for your requirements and be realistic. If you want an MP3 player for exercise and you only own 400 songs, you don't need a video capable 16 gigabyte giant. If you buy it, you may be tempted to spend $400 to buy more songs or movies that you don't need. If you need an unlimited number and variety of songs you are looking for a radio.

3. Comparison shop. Go online and find the best price from at least four web sites. Then visit a discount store and a membership store to make sure you have the best price.

4. Wait a few weeks. You never know when a new model is coming out, but you'll never forgive yourself if you rushed. Thanks to value drift, there is always a chance that the price will decrease on the model you have in mind.

5. Consider buying used. Those very insecure people who must have the newest and latest of everything often want to sell the model they bought last year. Obviously they have no sense of value so you may be able to pick up quality merchandise very inexpensively.

Many people will pay for the privilege of being first. They get admiring stares and looks of envy for a few weeks until many other people have the same thing. The extra cost for being first has no lasting value and does not make the product more useful. In fact, these early buyers often end up testing products for free and the failures they endure make follow-on products more reliable and valuable.

Remember the motto of the wise shopper; get ready, get set, wait.