Questions To Think About Before You Spend Money

10/24/2020

Are we buying too much? Why do we buy?

As consumers, we are subjected to a relentless barrage of marketing. What is the goal of marketers? To turn wants into needs. Marketers know that consumer behavior is driven largely by emotion. So advertisements and the shopping experience itself are designed for maximum emotional appeal.

Ask "Why" Before You Buy!

Do you enjoy the excitement of shopping and finding a bargain? If so, you may tend to purchase on impulse. To resist, slow down and think realistically about the long-term consequences of buying, owning, and maintaining what you are planning to buy. Stop and remember past impulse purchases that you later regretted. Give yourself a "cooldown" period before making your final decision.

It's important to know the difference between needs and wants. Needs are items or services that you must have in order to live. Wants are items or services that you would like to have but can live without if necessary. To help you figure it out, ask yourself these questions before you buy something.

Is this a need or a want? Why?
Do I have the money for this without borrowing any?
Is this the most important thing that I want right now? Why?
Can I wait three days to buy this so I can think about it more?
If I buy this, will it take money away from something I have been saving for?
Can I buy something similar for less money?
Will I be sorry that I bought this later? Why?

Be Wiser When It comes To Money!

It is easier to spend excessively if you are not sure about your financial status. Keep up-to-date records, and know your total financial situation. Create a realistic monthly spending plan based on your income and past experiences. Track your spending, and compare it with your plan. Ask a trusted friend for help in understanding financial matters that are unfamiliar to you.