Every purchase you make has a potential cost. It could be the price tag, your credit score or whether you will end up with buyer’s remorse. In addition to that, many purchases simply don’t work out. They may be obsolete, broken, left in the closet until they become trendy again (which never happens), or even worse — donated to a charity sale. It’s important to think about all the factors involved when you are deciding what to buy.
1. Is There Somewhere Else That Offers This Product For Less?
With the advent of smartphone apps and websites, it is extremely easy to do a quick five-minute search for prices before you pull the trigger on an impulse purchase. You will often find that items are sold for much less if you do a little research before buying.
2. Is This Purchase A Need Or A Want?
Most people’s budgets include some mix of needs and wants. Needs cover basic essentials, like food, shelter, utilities and clothing. Wants are luxuries, like flashy sunglasses or a blinged-out collar for your pet. These items should be purchased in moderation, and only after all your needs are covered.
3. Would This Purchase Help Me Move Towards My Goals?
It’s always a good idea to consider your goals before making any purchase. It is especially important if you are prone to buyer’s remorse. Is that new TV really worth the extra stress of putting yourself in debt and sacrificing your goals? If not, it is probably best to pass on the purchase and save yourself a lot of buyer’s regret in the future.