Impulse buying is a killer.
No, it probably won’t take your life, but if you do it enough times, it could kill your finances.
Think about it, how many times have you wanted something on a whim and just bought it? Happens a lot.
You see, you buy. You see, you buy. You barely think about it before money flies out of your account.
You basically become a slave to your appetite, spending money on things you can do without and having less to save.
This isn’t how to be financially responsible.
The next time you feel the urge to buy something, whatever it is, answer these questions first:
1. Can I do without it? (Do I really need it now?)
In life, some things are urgent, some are important, some are urgent and important, and some are unimportant and not urgent. Your needs will always fit into these categories. If a need is not pressing, you can safely delay spending money on it. Making a list of priorities helps with knowing what to spend on and what to hold off on.
2. Can I afford it? (Is it in my budget?)
There’s no negotiating this one: if you can’t afford something, don’t reach for it. And don’t take a loan to fund the purchase either. The only exceptions to this are foolproof investments guaranteed to yield returns quickly (so you can pay back your loan fast).
3. Can I get it at a cheaper price?
There’s almost always a better bargain if you know where to look. Before making a purchase, compare prices as much as you can. You should also ask people who have made a similar purchase how much it cost.
4. Is it worth the sacrifice?
Everything you spend money on isn’t just costing money, it’s costing you something else you could buy. Every purchase should justify everything else you’re sacrificing. For example, buying a piece of land you can sell at a much higher price in the future instead of buying a second car is definitely justified.
The bottom line: It’s easy to rush into buying things but hard to deal with the effects on your finances. Slow down, think about what you really need and how much you have to spend before you release your money.