Frugal Idea #48:What To Ask Yourself Before Making A Pricey Purchase

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I started blogging about my personal financial situation almost two years ago (time sure does fly!). I was sick of being in debt, living paycheck to paycheck, and always comparing myself to others in regards to how much I should be making or how much money I should have in the bank account. I took my readers on my journey to paying off all of my consumer debt, paying off my student loans, and finding ways to live more consciously in regards to how I spend my money.

Since this journey started, I have been touched by so many people. Whether it was a co-worker who informed me that she subscribed, a new Twitter follower, and/or a new like on Facebook, I am truly grateful. I took my passion to the next level and attended my first FinCon in Charlotte, North Carolina in 2015 where I was able to meet so many like-minded individuals and was inspired by their passion. Each post I write, I only hope it touches one other person so that he or she may experience what I felt: a sense of control and a sense of peace. It is quite amazing how much your life changes once your stress levels are in control.

With that being said, I have expanded my network and want to expand yours as well. I have a guest writer for Frugal Idea #48. Her name is Stacy Miller. She wrote me an email and tweeted me that she read my blog and wanted to contribute to it. How can I say no? This can be a journey for all of us. Let us all help each other to live the life of financial freedom we all have envisioned.

Alright, Stacy….take it from here!

About Stacey Miller:

“Stacy B Miller has been working as a content developer and editor at Oak View Law Group for the last 4 years. Besides writing financial articles, she loves to cook and explore the whole world with her family.”

What To Ask Yourself Before Making A Pricey Purchase

Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like”. – Will Rogers

Nothing blows your savings faster than a large purchase. Now, the definition of a large purchase varies from a person to person. But usually, a car or a house are considered large purchases within your lifetime. They can be a great addition to your life, or perhaps a bad decision and the worst addition to your life leading to regrets. Words such as “regret car purchase” pop up in the Google or Yahoo search engine results every day. So, it is better you conduct the large purchase the right way.

But how can you possibly stay away from a financial disaster when purchasing something that costs 5 figures or more? Well, congratulate yourself! You have come to the right place. I have created a list of questions you need to ask yourself before making a large purchase. Hopefully, the answers to these questions will help to avoid a financial catastrophe.

  1. Am I stressed or depressed?

You are likely to make a big purchase when your emotions go haywire. Sorrow, depression, divorce, death can make you too emotional. When you are extremely sad, you might start feeling that a large purchase is what you need in order to reduce your emotional pain. But, you are wrong. You will regret your purchase later. So, stay away from online shopping portals and shopping malls when you are stressed or depressed.

  1. Do I want to have it even after several weeks?

Ask yourself if you want to buy and use the product in the future too. Try waiting for 7 days before making a large purchase. Give yourself some time to think. This is called the cooling-off period. If you are still obsessed with the product, then take the follow steps:

Extend the cooling-off period

Wait for discounts

If the discount appears, grab the opportunity and buy the product. This would help to protect your savings.

  1. How am I doing financially? Can I afford to buy this item?

Some bad financial habits can make you bankrupt. Again, some bad habits can leave you with a good financial health. Check your financial health and find out if you can afford to buy the item. If you want to buy a home, ask yourself if you can make a down payment and mortgage payments every month. Ask yourself how secure your job is right now. How would you make mortgage payments if your income drops? Do you have a Plan B to avoid a foreclosure or bankruptcy? Do you have a sizable savings account in your bank account? Can you save your home and take care of basic living expenses even in the worst financial scenario?

  1. Have I checked out the reviews?

Have you checked out the online reviews of the product? Do you know if the product is worth the money? What are the most common complaints about the product? What are the recurrent issues people are facing? Remember, you are going to spend a lot of money for the product. This is a large purchase. So, you should buy a product that has the best features. Check out the durability of the product and the resale price as well..

  1. Do I fancy the item or truly need it?

Ask yourself these questions.

Do I need this item?

Can I survive without it?

Is it just a luxury purchase?

If you have money and can afford a luxury purchase, grab the deal without hesitation. But if you do not have money, then just forget about it. Of course, it will take a lot of willpower. Just remind yourself, you would lose the chance of buying several other things in life just because of one large purchase. If you truly need the item, then decide why and when you need it.

Conclusion

Ask yourself the aforementioned questions before making a big purchase. The goal is to know if you truly need the item. Even if you do need the item, ask yourself about the ways to obtain it at a lower price. Answer the questions honestly because you cannot lie to yourself. Besides, you would risk your financial health in the long run. I’m sure you would never want that to happen in the future.