With just about anything, the more you do it, the better you get at it. Consistent, deliberate practice has a way of wringing out inefficiencies and avoiding landmines.
However, for some activities, there just isn't the opportunity for most people to practice. Or, the activities are once- or twice-in-a-lifetime events.
Businesses that cater to these kinds of infrequent events capitalize on the inexperience of the buyers. I hesitate from saying that these businesses “take advantage of” their customers or “rip them off,” because I don't really blame them for doing so. Strike when the iron is hot.
But just by being aware that the business owners are licking their chops as you walk into the shop, you know to prepare a bit.
Here are ten types of infrequent expenses where it pays to learn as much as you can beforehand about what you're getting into:
- Birth. The birth of the first child is brand new in tons of ways. It's easy to buy into “it's for the baby” and “Don't you want the best for your child?” when that little sweet face is looking up to you, literally and figuratively. Remember that there are a lot of baby clothes out there at yard sales that are practically brand-new.
- Prom. I have yet to go through this with my daughter (or whatever the homeschool equivalent will be) but it's not far-off at all. These occur only twice or three times for most people. The expenses can run up quickly with all of the upsells that the formal shop throws at you.
- College. Two words: student loans. Think hard about what this means for you and/or your children if this is in your future.
- Flying by airplane. For an infrequent traveler like myself, I know I'm not getting from Point A to Point B as efficiently as I might. Frequent fliers know a lot more of the tricks, though, and there are lots of travel resources available to help others learn the tricks.
- Vacations. Not an all-the-time venture for most people. There's a good reason why some places are called “tourist traps.” Casual vacationers don't know any better.
- Weddings. (Hopefully) once-in-a-lifetime. Very few people (if any?) enter marriage with the intention of doing it again with someone else at some point. A good chunk of the bridal industry is geared toward making that day perfect — and perfectly profitable for them.
- Buying a car. This happens several times in a person's life. A little prep goes a long way, and as with flying, there are lots of online resources for buying a car the right way.
- Buying a house. I fell for this one hard the first time I did it. I played right into the real estate agent's hand. Pretty much everyone in this deal is in it for themselves, and they all have gone through their part of the deal many times before. This one is hard to prepare for, I'll admit. It wasn't a whole lot easier the second time around, either.
- Divorce. See #6. Hopefully, this never happens, but it's tough to prep for this one in advance, and if you are prepping in advance, then there's a problem? In cases when the divorce is amicable, it can be fairly inexpensive, but if there's animosity? Forget it.
- Death. And we end on a cheery note: funeral expenses! But death presents the ultimate challenge for a business, really. Funeral homes get precisely one shot per cadaver at selling as much as possible because people die exactly once apiece. If the grieving family knows this going in, they might have a chance at seeing the plot against them. (Sorry. Couldn't resist.)
Maybe it's enough just knowing that infrequency of expenses places you at a disadvantage. I hope so!
