How To Determine If Something Is A Smart Purchase
Sparkly, shiny, and brand new... Ohhhh, I gotta have it!
We have all been there. It’s a frustrating feeling of wanting to buy an item but not being sure if you should buy it. However, there is a way you can tell if your purchase will be fruitful or you will face buyer’s remorse. By asking these 4 simple questions, you can know if you should buy it? Or let it go?
Shopping For Something Out Of Budget
The art of shopping for an item out-of-budget lies in the depths of decision making. If you know what questions to ask yourself, you will know whether your purchase will be worth it or not.
1. Is It A Need Or Want?
Life is a constant battle between fulfilling our needs and satisfying our wants. If you have an iPhone 11 Pro Max, you would want an iPhone 12 Pro Max. But is it a need? When purchasing anything out of your budget, always consider your needs over wants.
2. What Can I Cut From My Budget?
Budgeting is important if you want to improve your financial conditions. Making ill-planned purchases can drastically affect your savings. So, ask yourself: what “want” you can cut to fulfill this desire?
3. Will This Add Value To Your Life?
Every out-of-budget purchase will put you back months or even years on your financial goals. So, whether it’s a need or want, you should ask if your purchase will add value to your life. Value can be in terms of resale price or convenience. So, understand the difference your purchase will make, and you will know whether you should buy it or let it go.
4. How Long Will This Item Last?
Every item has a life, and knowing how long your purchase will last is a good strategy. Ideally, anything you buy should last a year. To know the exact life of your purchase, subtract 5% of its purchase value each month as depreciation. If the cost price lasts a year, it’s a safe purchase. For example, $1000 x0.05= $50, multiply this by 12. If the sum is less than $1000, it should last you more than a year.
By asking the right questions, you will know what you are getting into. These tips will help you buy anything from expensive fashion accessories to high-end flagship phones. So, keep using the question-based purchase model to help you figure out whether buying an out-of-budget item is good for you or not.