7 Smart Questions for Big Purchases
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Several factors affect a decision to purchase. It can be difficult due to its price, impulsive because of biases, or well-thought out for its benefits and usage. However, deciding on big purchases that significantly change your lifestyle is worth paying close attention to. This article explores considerations before committing to a purchase.
When a Purchase is a Big Deal
In today’s consumer-driven society, people make thousands of purchases in a day. These daily buying habits are far different from large purchases such as buying a house or a car. Interestingly, 22% of Americans are indifferent about the possibility of making big purchases this year, with 45% of the whole population unlikely to make one in the next few months. How do you build the confidence to make informed purchases? Here are 7 questions you should ask:
1. Is it a necessity?
Before making a big purchase, assess whether it meets your basic needs for survival. This includes your health, well-being, and living conditions. However, improvement and necessity are two purchasing benefits that must be differentiated. Evaluate whether the purchase is truly essential for your current situation or simply an upgrade to a life you can still manage with, ensuring a wise purchase at the right time.
2. Is it affordable?
Assessing the price and your income is an evident factor to consider. Review your budget to properly allocate the right amount of money that you can spend on a major purchase. This prevents overspending and balances that can cause challenges in the future. While it can make you feel discouraged, alternative options can still apply, such as delaying the purchase, waiting for a sale promotion, or choosing a financing option.
3. Is it urgent?
The purchase being essential to basic survival is an important measure of importance, but urgency is also a noteworthy consideration. Emergency situations can call for major purchases, which usually limit time to decide. Prioritizing certain factors based on importance and urgency can be difficult to tackle.
4. Are there better options?
Apart from payment options, look into other offers in the market. Along with price, evaluate the advantages and disadvantages of different options. Weighing offers with a broader scope leads to more well thought-out and satisfying purchases. However, it is important to control impulses to choose based on surface-level details. Carefully limit your selection to avoid being overwhelmed and indecisive.
5. Are emotions in the way?
Deciding on an important purchase is a naturally personal choice. Your emotions can influence the major purchases you make. Observe how your feelings may be affecting your judgment. While subjectivity is important for personal satisfaction, weighing pros and cons requires objectivity. To prevent mistakes in purchasing, call trusted people who will give you honest and informed feedback. Having an open-minded approach gives you a balanced and nuanced perspective to make large purchases.
6. How will it be paid?
Review the financing options available to help cover the costs. While it is ideal to choose an affordable purchase up front, choosing other alternatives can still be a suitable option to consider. Learn more about using a credit card with a low interest rate or pay later programs to settle with installments. Calculate its feasibility on your end to make major purchases without needing to wait and save up for a long time.
7. Is the timing right?
Without proper planning and examination, big purchases can significantly impact your lifestyle in the next few months. Assess existing and upcoming purchases and events. This includes possible maintenance costs, institutional and event fees, taxes, insurance, and rent payments. Calculate how big purchases add up to the equation to understand when they can be practically done to prevent future complications.
Making a big purchase is not an easy decision. Guilt can get in the way before or after spending a huge sum of money despite thinking through your decision. Watch our video on “The Secret to Overcoming Guilt When Spending Money” to gain insight into dealing with the side effects of major purchases.
Key Takeaways
- Deciding on big purchases requires a lot of thought, research, and planning, but it is an important step that should be carefully yet confidently taken.
- Assess whether a purchase is necessary, affordable, urgent, and better in comparison.
- It is also important to include the influences of your role as the buyer, which involves your emotions and financial background.
Sources
BMO. (2023, September 15). How to prepare for a big purchase. Retrieved September 6, 2024.
Braverman, B. (2022, May 10). Big purchases need major planning. Here’s where to start. CNN. Retrieved September 6, 2024.
Diamond Valley Federal Credit Union. (n.d.). 7 questions to ask yourself before making a large purchase. Retrieved September 6, 2024.
Hicks, A. (n.d.). 5 steps to take before making a large purchase. Clearview. Retrieved September 6, 2024.
Simeon, L. (2024, February 1). Fewer than a quarter of consumers feel they’ll be in a position to make big purchases this year. YouGov. Retrieved September 10, 2024.
White, A. (2024, August 22). 4 questions to ask yourself before making a big purchase. CNBC. Retrieved September 6, 2024.
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