While there are some expenses that may not require much thought, such as groceries, gas, or bills, some bigger buys may require a bit more consideration. Here are five questions that you should ask yourself before making a major purchase:
1. HOW DOES THIS PURCHASE AFFECT MY BUDGET?
Would this purchase impact your budget in a negative way? Would this purchase result in bills not being paid on time? If so, you should probably take a step back and create a savings plan in order to make your purchase.
2. IS THIS ITEM SOMETHING I COULD BORROW?
Instead of shopping for an item of your own, check around with friends and family and see if there is something you can borrow. For example, say you’re working in the backyard and you need to trim some branches. Instead of buying your own shears, borrow some from a neighbor. In turn, be sure that you are accommodating if and when it comes time for them to borrow something from you.
3. WOULD I BUY IT FULL PRICE?
You find an item on sale for a great deal. Here’s the question though; is this something that you would normally be interested in even if it wasn’t on sale? If this is an item you’ve had your eye on for a while and you were just waiting for the perfect price, go ahead and buy it. If this is something that caught your attention just because it was on sale, you’ll probably be okay passing on it.
4. CAN IT WAIT?
While there are some purchases that need immediate attention (such as a broken refrigerator or a flat tire) there are some that can wait. How would your life be impacted if you waited a week? A month? Six months? If the answer is ‘not very much’ or ‘not at all,’ wait and budget for the item.
5. IS THIS A GOOD TIME TO BUY?
Prices on items tend to fluctuate depending on the time of year. For instance, if you need a new winter coat, try to purchase one around the time that spring wardrobe starts appearing in stores. If you're looking to buy a new car, wait until the dealers are clearing out older models to make space for new vehicles. For more information on when some of the best times to buy are, click HERE.