I just heard on the news that the Wii is getting a price cut of $50 because Nintendo is going to release the next generation in 2012. What really got my goose was when the anchor ruminated, “It’s really difficult to decide if you should invest now or wait for the new system.”
WOW, the word invest is getting thrown around a lot these days. Buying a Wii is not investing, it’s spending money to have fun. I also recently read many personal finance blogs about investing in clothes, luggage, international trips, and more. All of these are not investments, so why is “invest” getting so overused?
I think it’s an insidious plot by the corporations to help consumer feel better about spending money! After all, “investing” sounds so much better than “spending”. Today I’m going to “invest” in a take-out lunch! It will keep me from getting hungry and help me write a blog post. Then I’m going to “invest” in a pair of new jeans and a few polo shirts so I can send some old clothes to Goodwill. I’ll also “invest” in a tank of gas so I can get around…
Let’s face it people, all these are expenditures, not investments. Investments will make you money, not sit around depreciating. Anything that depreciates is not an investment in my book. Even items like business clothes and a car to get you to work is not an investment to me. Those things are just the cost of doing business/working. I’m not saying don’t buy the Wii, all I’m saying is to recognize that it’s an expenditure.
What do you think? Do you like to use the word invest to make yourself feel better about a purchase? BTW, I would wait until next year to buy the new Nintendo system. The life cycle of a gaming system these days are stretched out to 5-6 years. It worth waiting until 2012 so you can have the latest Nintendo that will last a long while.