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If it is too good to be true.....

When I was growing up one of my Dad’s key pieces of advice was “if it is too good to true it probably is not what it appears to be.” Yet it is easy to get persuaded to buy into something that is too good to be true. Turn on the television and listen to those commercials about wonder products selling at a tiny fraction of the logical price “and if you act right now we will double the purchase…” Back off.

When you are shopping for a used car beware of prices that are illogically low. The same is true for buying a house. Early in our married life we were very interested in buying a particular home and the price was better than we expected. Fortunately we did a little checking and found that the house floods whenever there is heavy rainfall. We figured it out in time.

The “if it is too good to be true” principle pertains equally in business. Whenever you are offered something that is better than you expect, dig deeply. Ask every question you can, do your research and talk it over with others. A heavy application of curiosity and skepticism will generally prevent getting into a bad deal.

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