While there are some expenses that may not require much thought, such as groceries, gas or bills, some bigger buys may require a bit more consideration. David Sant with Cyprus Credit Union gives us a few questions that you should ask yourself before making a major purchase.
How Does This Purchase Affect My Budget?
Would this purchase impact your budget in a negative way? Would this purchase result in bills not being paid on time? If so, you should probably take a step back and create a savings plan in order to make your purchase.
Have I done My Research?
Before any major purchase, you`ll want to do your research so you can make it`s the right fit for you. Read products reviews and reach out to friends and family who have purchased similar items.
Would I Buy it Full Price?
You find an item on sale for a great deal. Here's the question though; is this something that you would normally be interested in even if it wasn't on sale? If this is an item you've had your eye on for a while and you were just waiting for the perfect price, go ahead and buy it. If this is something that caught your attention just because it was on sale, you'll probably be okay passing on it.
Is This a Good Time to Buy?
Prices on items tend to fluctuate depending on the time of year. For instance, if you need a new winter coat, try to purchase one around the time that spring wardrobe starts appearing in stores. If you're looking to buy a new car, wait until the dealers are clearing out older models to make space for new vehicles.
Is the Higher Price Worth It?
Sometimes, you need to look at the overall investment value of an item. While a similar item might be less money, it might need to be replaced sooner costing you more money in the long-run.
Will I Still Want This in a Week/Month/Year?
Many purchases are made spur of the moment. With a bigger purchase, or something you just really want but don't necessarily need, you really need to take the time and examine how this item will pay a role in your future. Look at your life down the line, will that trendy, expensive jacket still be something you want to wear in a year's time?
Find out more at CyprusCU.com.