Do These 5 Things Before A Big Purchase

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 a new entertainment system. Before you take the plunge and spend the money, do these 5 things before you make 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 want it. You can wait an entire week or even a month for an extra-large purchase. After some time, you may find that you don’t want the item.

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 using this purchase to help numb the pain. Be honest with yourself and take note of what’s 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 don’t want to 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 now. A low-interest credit card may offer purchase protection, but make sure you can make 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 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 avoid impulse buying. Make sure it is something that you really want and that you have room for it in your life. If it is important, you will find a way to pay for it. If you like this post, check out our other posts on our MoneySmart Tips blog.