When browsing this subreddit, you often come across that phrase, diminishing returns.
I’m German, English is my second language, and there isn’t really a German phrase for this concept that would be on everyone’s mind when talking about this concept like ‘diminishing returns’ seems to be.
It’s a really neat concept and is true for so many hobbies, or things one can buy in general, but it is also ultra subjective, isn’t it?
Like, if someone has a 2000$ headphone but doesn’t really like it, and then spends 4000$ on one that they do like - does objective performance matter? I think the difference between the 2 could be 5%, but if it’s 5% in the right direction, they make the difference between selling it or keeping it and being happy.
I think there are people out there who don’t really shop in the 2-digit price category, or even 3-digit one, only 4 and above, for whatever reason - but they just wouldn’t be happy with a 500$ headphone, knowing that there is better stuff out there if you just spend the money.
I don't really have a point, I just got a bit philosophical about that phrase I guess.
Diminishing returns can be applied to even more than that. My friend and I apply what we call the 80/20 rule to our whole lives. The idea is that you can get 80% of the return for 20% of the effort (this is a generalization).
The other side of the equation is the last 20% of the returns take 80% of the effort due to 'diminishing returns' - we call this perfectionism - where you spend 5 times the effort to get to that 100% return.
It's similar to your example with the headphones where your 20% might be a really nice $2000 pair which would provide you that 80% return. However, in order to get to your 100% return, you'd have to spend $10000 (again, generalization).
Just my two cents on the phrase. I am a fan of it too, and it can have great implications for your life if you apply it well.