Do you ever get caught in the cycle of “see it, want it, and buy it?” Before you spend you don’t stop to think through your purchase. Here are five questions you can ask yourself before spending money on impulse purchases and larger purchases.
Do I Need This?
Often times its helpful to take a moment, pause, and ask yourself the simple question of ‘Do I need this?’ This question can become a gatekeeper of sorts. A way to prevent impulsive spending. With the access to shopping right at our fingertips, wait overnight before even answering the question. You’d be amazed at the clarity a good night of sleep can bring to a spending decision.
Will this item increase or decrease in value?
Now, not all of our purchases can be for items that increase in value, but if all of your purchases go down in value - there is a problem. Ask yourself this question, as you consider larger purchases and potential investment purchases. Find someone you know who is prospering with their investments, and ask for their advice!
Do I have the money to pay cash for this item?
Is your first instinct to finance? To finance the car, the next car, the furniture, the trip, and so on… Consider asking yourself this question before purchasing. If you don’t have the cash to pay for it, don’t buy it (unless it’s a house or an asset that will increase in value.)
Will this purchase generate income for me or take income away from me?
What a great question to ask - and what a difference it will make in the way you think about money. Before you spend, just stop and ponder the options available to you to use those resources to generate more income for you in the future.
Will this help me achieve my future plans, hopes, and dreams?
Without a longer-term perspective, it becomes extremely easy to fall into the trap of living for the minute, and immediately spending every single dime we earn. This question can help you recognize that spending all your money right away can rob you of your future dreams.
So Before You Spend…
THINK! Think about what this big purchase means. Not just the temporary gratification, but how it will impact you in the long run.