So you think you need to purchase an item that is not in your budget list, and you suspect you just want it instead of needing it, which means, you can live without it easily. But then you think about it night and day because you really really want it but buying it means you’ll have to sacrifice other needs temporarily as your money is not unlimited.
Here are five important questions you should ask (and answer) yourself before making the purchase:
1. What Is the Purpose of This Item?
Time to go deep with this question and answer honestly. Is it just to show off your friends that you’ve got a good looking/latest gadget? Or is it to show off your clients that you have high-end gadget and therefore, is likely to deliver the best result possible (for example, the latest camera with more megapixels and faster auto-focus, if you’re a photographer). If it’s the latter, then perhaps yes, you might want to buy it. This is also a question that relates to pointing out the difference between needs and wants. (Here is a post about wants vs needs).
2. Is There a Cheaper Alternative Without Compromising the Quality?
If we are talking about a tablet or a computer, for example, a cheaper alternative would usually be something with a bit slower processor or less storage. Then we should ask if we could live with a bit slower processor and/or less storage.
3. How Long Does It Take for Me to Recover the Money I Use to Purchase the Item?
This is the question you should ask whether or not to borrow and how much interest you’re going to have to pay with the loan. Or, suppose you’re not borrowing and just using your savings, how will it jeopardise your financial goal?
4. Can You Delay the Purchase While Saving More Money so That You Don’t Have to Compromise Your Savings/Any Other Spending?
Unless you urgently need the product (a smartphone because your old phone died), or unless it relates to your business/career (e.g. a new laptop/computer because your old computer is too slow and making your overall work inefficient), you should delay the purchase for at least a month. Sleep on it, think of it again and again.
5. Can You Afford to Buy Additional Accessories Needed for the Product You Want?
If you want to buy a laptop, for example, if you intend to use it for many hours a day, you’ll need to buy a cooling pad to keep your laptop from overheating. Then you may want a laptop bag so you can securely carry it whenever needed. And perhaps you’d also want to get a separate mouse and separate keyboard so that you can work faster or more comfortable.
How is your experience with questioning yourself before buying anything, especially a big, expensive purchase? Share your thoughts in the comment box below.
