We’ve all had a moment in our lives when we’ve had to make a big purchase. However, there are some things you want to make sure you do before a big purchase. I’m going to make sure you’re aware of these things to help ensure you’re making a great financial decision for your life and your family.
Do Your Homework.
I don’t want you to overspend on an item if you don’t need to. For example, if you’re going to buy a phone then buy one that has all the functions you need. But don’t buy one that has more than what you need. You’ll end up paying more for functions you may never use.
The same goes for a car, computer, or anything else.
Do your homework before you spend your hard-earned cash. This is especially true when it comes to financial investments. You don’t want to just hand over your money without knowing what you’re truly getting into.
If you have any unanswered questions, don’t buy it until you’ve answered all the ins and outs. This is to protect yourself and your pockets.
Sleep On It.
I know I’m not the only one who gets emotionally attached to an item it seems like I must have. This is a danger zone because you may be buying through your emotions and not with your head.
The best thing you can do in this situation is to go home and wait for it. After a few days, if you find you still desire to purchase this item then go ahead and do it.
Some emotions fade and after some analysis, you find you don’t really need the item after all. You can always go out and buy the item, but you don’t want to be stuck with an item that cost a lot of money and now filled with regret.
What’s Your Why?
It’s important to dig deep and find the motive of your desires. We all have a budget to stick to and there are times to enjoy your money and spend on yourself.
However, make sure you’re buying for yourself and not to impress someone who has no authority over your life. Also, don’t be fooled into thinking that spending a certain amount of money on an item can increase your happiness.
You can’t buy happiness so be careful to not overspend on a material object. Be reasonable, stay in your budget, and understand your why.
Consult With Your Spouse.
If you’re married, always tell your spouse what is going on with money. The finances should be combines and nothing in that realm should be a secret. That’s one area that should always be transparent.
Before making a big purchase, your spouse should always be aware of it. How do they feel about it? Do they have any input? You do not want to make a purchase that’s going to cause conflict in your marriage. It’s just honor and respect for the other individual.
What’s The Opportunity Cost?
You can only do so much with your money. Therefore, it’s important to realize what you’re giving up in order to buy that product. For example, if you buy a $20,000 car then understand you will no longer be able to invest that $20,000 into something else.
Ask yourself, “Is there anything better to spend this money on?” If you end up regretting your decision, you will end up thinking of all the things you could’ve spent that money on. That’s why you might as well ask the question up front and know what you’re getting into.
What do you think? Did I miss any important grounds that need to be covered before a big purchase in your life? If so, please let me know in the comment below. Also, share with everyone you know needs this information. Thanks for reading!