Adam McHenry, CFA, MBA
Portfolio Manager, Raymond James Ltd.

I’m Adam McHenry, Portfolio Manager at Langill and McHenry Investment Advisors of Raymond James Ltd. With two decades of experience and a rich background of CFA and MBA designations, I have had the pleasure of working with individuals and families to help them understand the importance of financial quality over mere quantity.

In today’s consumer-driven world, it’s easy to be drawn to the allure of bargain prices and trendy items. However, true financial wisdom often lies in the concept of “Cost Per Use.” It’s about evaluating the actual value you’ll get from a product or experience over time, rather than simply looking at the initial price tag.

“Buy cheap once, pay twice”

1. APPAREL: THE $5 SHIRT VERSUS THE $30 SHIRT
At first glance, a $5 shirt may seem like a steal, but what if it wears out after just five wears? Conversely, a $30 shirt of higher quality might last for 30 wears or more. In this scenario, the cost per use of the $5 shirt is $1, whereas the cost per use for the $30 shirt can be as low as $1 or even less. Quality over quantity indeed!

2. TECHNOLOGY: THE LATEST GADGETS AND TOOLS
The tech world offers another prime example. A low-cost tablet may seem attractive at $100, but if it slows down or breaks within a year, its value diminishes quickly. A $400 tablet that lasts four years and provides a seamless experience throughout is a far better investment when you break down the cost per use.

3. KITCHEN GADGETS: INVESTING IN DURABILITY
In your kitchen, a $10 blender might appear economical, but a $100 blender designed to last, perform efficiently, and perhaps even come with a warranty could prove to be the wiser investment. Quality kitchen gadgets can significantly enhance your cooking experience while providing better value in the long run.

4. EXPERIENCES: COST PER HOUR CONSIDERATION
When planning experiences such as vacations or special events, considering the cost per hour can be enlightening. A three-day luxury getaway at $1,500 might seem steep compared to a week-long budget vacation at the same price. But if the luxury experience offers unforgettable memories and complete relaxation, its value per hour might be far greater.

CONCLUSION: A MINDSET OF QUALITY
Embracing the concept of evaluating cost per use is not just about saving money; it’s about investing in quality, durability, and experiences that truly enrich your life. It’s about making informed decisions that reflect your values and long-term goals.

Are you looking to make more thoughtful financial decisions? Do you want to align your spending with your life goals? I’m here to help.

Reach me, Adam McHenry, at 416-901-6500 or via email at adam.mchenry@raymondjames.ca. Let’s work together to ensure that your financial decisions are in harmony with your lifestyle and aspirations.

*Source: Information in this article is from sources believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, Adam McHenry, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member Canadian Investor Protection Fund.