How do you evaluate whether or not to make a purchase? What if you’re stuck and indecisive? Want to avoid buyer’s remorse? When it comes time to make a big purchase: anything from a vacation, a car, or home: STOP before making that purchase.
Here are three questions to ask yourself before making a big purchase.
1. Does this purchase fit my values?
Some people say that you are what you eat. You’re also what you spend money on. Whatever it is that you’re pondering on purchasing, start with: does this fit in line with my values? Does a luxury purse match my values?
If you value high-end fashion, then yes it does. If instead your primary values are giving, working hard, and fitness. Then why in the world are you spending money on a luxury purse? Go volunteer, give to the community, and run a 5k instead😊.
2. Can I hold off making this purchase?
You feel that you desperately need the
next iPhone that comes out, but…. do
you really need it?
Probably not. The one that you have is likely getting the job done just fine. Or in other words…
During the Great Depression, the saying of the time was, “Use it up. Wear it out. Make it do or do without.” Keep on using what you already have, wear it out for as loonnng as you possibly can, and if you don’t have the funds then go without temporarily. BONUS for waiting on making a purchase: the price can drop!
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3. Have I done my homework?
The last question
to ask yourself before making a big purchase is have you done your homework and examined ALL the options? If
you’re buying a house, what are comparable properties going for? Have you
interviewed multiple realtors?
What are the total costs associated with the purchase now and within the next 5-10 years? Here’s tips on how to know if you’re ready to buy a home.
for example if you’re buying a new car, how will that impact your insurance?
Will the amount your spending on gas go up or down? Here’s my painstakingly
slow journey to buying a car with cash part one and part two.
It’s a good rule of thumb to get three different quotes from insurance companies, or three different car dealerships, etc. That’ll give you more knowledge of what the going rate is for the item you’re eying. This also gives you negotiating power to be able to walk away from a deal confidently.
Being good with money doesn’t mean depriving yourself from spending money. Be conscious of your purchases and a confident buyer. Manage your money like a boss when you ask yourself these three questions before making a purchase.