Ask Yourself These Five Questions Before Splurging on a Big Purchase
Throughout the decades, the consumer economy has skyrocketed across the world, but nowhere near as much as in the U.S. According to recent studies, the consumer economy makes up 70 percent of the U.S. economy. It seems like the more we make, the more we spend, and unfortunately, much of that spending is on credit cards.
I’m all for boosting the U.S. economy, but as a budget-conscious mom, I’m also aware of the negative impact of spending money you might not have. If you’re thinking of splurging on a big purchase and want to know if it’s worth it, below are five questions you should ask yourself.
Do I need this item?
There’s a big difference between wanting an item and needing an item. Most of the time, big splurges fall into the want category and not the need category. Of course, we can all justify our thoughts and purchasing decisions, but when you do, make sure you’re OK with moving forward with making a big splurge on a purchase that can set you back financially.
Can I afford it?
A big purchase should never leave your bank account at zero. Splurging also shouldn’t require a credit card to complete the purchase. Creating a budget and analyzing your finances is key when making big purchases. Although it’s one of the first things you should do, we usually leave this step to the end. Do the math and make sure your basic necessities are taken care of before you move forward.
What’s the item’s longevity?
Whether you’re spending $200 on a pair of sunglasses or $20,000 on a new car, taking the items durability and endurance can make a difference when deciding if the purchase is worth it. Making a splurge on an item I will use every day and have for the next 10 years is easier than splurging on a big purchase that expires quickly or won’t last.
Thinking about these features is good for your wallet and the planet. Making sustainable and intentional purchases can save you a lot of guilt and headaches in the future.
Humans are emotional beings. When we build a connection, it’s hard to retract our feelings. Before making a big splurge, make sure you build boundaries that will keep you from making impulsive and emotional buys. In my family, we have a rule that if we’re about to make a big purchase, we “sleep on it” first. This means we walk away, take some deep breaths, and come back to the decision when we’ve calmed our emotions.
If you’re worried your splurge will be one you’ll regret, try this trick. You’ll be surprised how much of a difference a single day will make on those big decisions.
Will this item improve my quality of life?
I recently purchased a new laptop I had been considering purchasing for months. I kept talking myself out of it because of its terrifying price tag. Finally, I decided that because of my profession, a new laptop with upgraded features would greatly benefit my lifestyle. The speed, the functions, and the features would help boost my productivity.
Every day, my laptop helps me make money. So, while the purchase was a big and scary one, it also checked off all the boxes I mentioned above. Splurging doesn’t always equal bad. You deserve to spend your hard-earned money on things that make you happy. All while being a responsible adult.