Deciding on Making a Big Purchase

Deciding on Making a Big Purchase

Making big ticket item purchases will surely hit your savings goal. You definitely want to plan your purchases carefully. Therefore, it is essential to make sure you are financially ready before finally deciding to buy that item.

Having a clear idea of what you need is important to staying within your budget. Below are some of the questions that you need to ask yourself when making a big purchase.

deciding on big purchases

Do I Need This Item?

This helps you determine if you need the item or if it is just a luxury purchase. What are the needed features that you want from the item that you want to buy? If you are to buy a mobile phone, does it need to be a high-end phone? What would be the main use of it for you? Is it for gaming and photography? Or you’ll just use it for texting and calling? Again, separate the features on a ‘must have’ which are your needs from ‘nice-to-have’ which are just your wants. Determining if the purchase is a need or a want can help you to prioritize it in your budget. Never buy something because it’s what everyone else wants, or to be a show-off.

Why Do You Need It?

If it is indeed a need, then you need to determine why you need it. Do you need the item for work purposes? Do you need the item for your business? Or you need it because your old item got busted and needs to be replaced? The main purpose of the item should be the reason why you should buy it.

When Do You Need It?

The next question is when you need it. Are you in need of it urgently? Do you need it in two weeks? Determining when you need it makes time for you to save for it. In fact, you may be able to borrow the item temporarily from a friend or family member while you are saving up for the big purchase.

Did You Compare Prices?

Your biggest consideration when it comes to your budget is the price of the item. Before buying, compare the prices of the item for different brands. For example, if you are looking for motorcycle and motorcycle parts, you can try

Can You Find a Secondhand Item?

Making a big purchase will surely hit your budget. Looking for used or secondhand items is a great way to save money on a big purchase. Take time to research your items to determine if you really need a brand new one or a secondhand is already a good option for you.

When Does It Go On Sale?

There are cycles of sales like Christmas Sale every Holiday season and Clearance Sales every New Year. There are also the well-known Black Friday and Cyber Monday sales. If you can patiently wait for it, you can definitely save a lot buying on a bargain. Check out online stores for their announcements on sales.

Did You Research for Reviews?

If it is a big item purchase, then you can be assured that there are reviews of it available online. Research the item you’re eyeing to buy. Read the reviews about it and checkout the reports about its quality and durability. You can also look at buy and sell sites to check out how much is the resale price of it to see how well the value holds up.

If you successfully answered these questions, then the next thing that you should do is to save for it. Set aside a portion of your income monthly until you can afford it. If you can, don’t use a credit card to purchase it. The feeling of finally having the item in your possession after saving for it in months or even years is sweeter than having a credit card balance earning high interest that you need to pay monthly.

In addition, you also get a chance to practice delayed gratification by saving for something instead of taking the easy way out and using the credit card. Making a big purchase certainly needs planning and budgeting.

Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

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