Do These 5 Things Before a Big Purchase
Does the gotta-have-it bug bite you? It could be a Peloton bike that’s caught your eye, or maybe you want to spring for a new entertainment system? Before you take the plunge and spend the money, do these 5 things before you buy that big purchase
1: Wait it out
Often, a want can seem like a must-have, but that urgency fades when you wait it out. Take a break for a few days before finalizing a big purchase to see if you really want it. For an extra-large purchase, you can wait an entire week or even a month. After some time has passed, you may find that you don’t want the item after all.
2: Consider your emotions.
Before going ahead with your purchase, take a moment to identify the emotions driving the decision. Is this purchase being used as a means to fix a troubled relationship? Or maybe you’re going through a hard time, and you’re using this purchase to help numb the pain. Be honest with yourself and take note of what’s really driving the purchase. Is it really in your best interest?
3: Review your upcoming expenses
What significant expenses are you anticipating soon? Even if you have the cash in your account to cover this purchase, you may need that money soon for an upcoming expense. Don’t spend money today that you’ll need tomorrow.
4: Find the cheapest source for this item.
If you’ve decided you don’t want to go ahead with the purchase, there are still ways to save money. In today’s online world of commerce, comparison shopping is as easy as a few clicks. You can use apps like ShopSavvy to help you find the retailer selling the item at the best price.
5: Choose your payment method carefully.
Cash can be your go-to choice if you have the funds on hand now. A low-interest credit card may offer purchase protection; just make sure you can meet your monthly payments. Finally, a buy now pay later program, can be just what you need if you have 25% of the purchase price saved up, and you can afford to pay off the rest in fixed installments.
Making a big purchase is a big decision, doing these things before you make a big purchase will help you make sure you are not impulse buying. Make sure it is something that you really want and you have room for it in your life. If it is something that is really important to you, you will find a way to pay for it. If you like this post, check out our other posts on our MoneySmart Tips blog.
