While there are some purchases that may not require much thought, such as groceries, gas, or bills, some bigger buys may require a bit more examination. Here are five questions that you should ask yourself before making a major investment.
1. How does this purchase affect your budget?
Would paying for this impact your budget in a negative way? If so, you should probably take a step back and create a savings plan to make your purchase.
2. Is this item something you could borrow?
Instead of shopping for an item of your own, check around with friends and family and see if there is something you can borrow. For example, say you’re working in the backyard, and you need to trim some branches. Instead of buying your own shears, borrow some from a neighbor. In turn, be sure that you are accommodating when it comes time for them to borrow something.
3. Would you buy it full price?
You find something on sale for a great deal. But, is this something that you would normally be interested in if it wasn’t on sale? If this is an item you’ve had your eye on for a while and was 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 it up.
4. Can it wait?
While there are some purchases that need immediate attention (such as a refrigerator breaking or a flat tire), there are some that can wait. How would your life be impacted if you waited a week? A month? Six months? If the answer is ‘not very much’ or ‘not at all,’ wait and budget for the item.
5. 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.
Cyprus Credit Union wants to make your financial decisions as easy as possible. Visit them online at Cypruscu.com or call 801-260-7600.