Smart shopping usually means avoiding impulse purchases or spending on items that don’t provide enough value based on their cost. The trick is that fighting temptation and making sure a product or service is worth buying isn’t always easy. Fortunately, you can make it simpler by using the right strategy and questioning your potential decision before moving forward. Here are ten key questions to ask yourself before making a purchase.
1. Do I Need It, or Do I Just Want It?
Sometimes, taking a moment to determine if a purchase you’re considering falls into the “need” or “want” category can work wonders. Honestly assess if something you’re thinking about buying does something critical in your life. If it’s only a nicety or does nothing more than add convenience, such as by improving on an alternative technique you can already use based on what you own today, then skipping the purchase is best if you’re trying to be frugal.
Essentially, you want to figure out if you can get by without the purchase or not. If it’s possible to accomplish what you need to do without it, then it’s usually better to view it as a want instead of a need.
2. How Much Would I Really Use It?
Thinking about how often you’d use a potential purchase is another critical step to take. In many cases, buying a product for a one-time or occasional need isn’t always ideal. Along with the money you’ll spend, you end up with an item you’ll need to store. If it’s for an activity you don’t do often, you’re essentially buying a dust collector.
3. Is This Something I Can Borrow or Rent?
For products that fill a need but you won’t need more than a few times ever, asking yourself whether borrowing or renting the item is possible is worth doing. Borrowing the product from a family member or friend could let you meet the need without having to actually make a purchase. Renting usually means you’d spend less while still meeting the need.
In many cases, borrowing or renting works very well for tools or home repair equipment. However, you may be able to borrow everyday items, too, particularly when it comes to home goods like specialty baking dishes. Ultimately, it’s ordinarily worth exploring, especially if you don’t imagine needing to use the item more than one or two times a year.
4. Can I Find It Used?
When you have a genuine need for a durable item, consider looking for one that you can buy used. Whether it’s through an online marketplace, thrift shop, or any other avenue, going with a previously owned version could help you save a bundle.
Similarly, looking for open-box or refurbished items from trusted retailers can also work well. Even if these products work perfectly, the store can’t sell them for the same price they charge for new ones. As a result, you might be able to score quite a deal.
5. Would I Be Able to Cover the Purchase in Cash?
Using credit for a purchase is a nearly surefire path toward financial strain, especially if you make it a habit. Plus, interest charges mean you’re spending far more than the purchase price on the item, which can diminish the overall value.
Take a moment to figure out if you can cover the purchase with cash. If the answer is no, and you’d have to use a method that involves accruing interest, then think twice about moving forward.
6. What Do I Gain If I Buy This?
This is a question that’s designed to help you genuinely assess whether what you’d get from the purchase is worthwhile. Are you considering it because it would boost your status or get approving nods from others? Is the only reason you’re thinking about it because someone else is pushing you in this direction?
Essentially, you want to figure out the “why” behind the purchase. By knowing what’s motivating you, it’s easier to determine whether you’re making a smart shopping choice.
7. Is There a Lower-Cost Alternative?
Even if there’s a genuine need and your reason for making the purchase is sound, it’s wise to see if there’s a lower-cost alternative that can serve the same purpose. While you don’t want to go so cheap as to end up with unnecessarily poor quality, you may find some savings by exploring other brands or alternative products that can perform the same function. Similarly, it can lead you to check out prices at a wider variety of retailers.
This question functionally makes sure that you comparison shop before you move forward. That way, if you do decide to buy, you’ll get the best bang for your buck when you do.
8. Do I Already Have Something Like This?
In some cases, there’s not much differentiation between what two products or services do. So, it’s worth spending the time to take inventory of what you already have that’s similar. By doing that, you avoid making a purchase of a product or service where something you already own can meet the same need. Essentially, it reduces your odds of accidental redundancy, and that can prevent unnecessary purchases.
9. How Much Did I Have to Work to Buy This?
While this might seem like an odd question to ask yourself before making a purchase, it’s surprisingly powerful. What you’ll need to do is calculate the total cost of the item, including the base price, taxes, shipping, finance charges, and anything else that comes with it. Then, divide that by your hourly wage, preferably after you account for taxes and other withholdings.
That calculation shows you how many hours you had to work to secure enough money to buy the item or service. Once you see the figure, you can ask yourself if what you’re thinking about purchasing is worth the effort required to cover its cost. If not, that’s usually a clear sign that not buying it is the better choice.
10. Could the Money Be Better Off Elsewhere?
Another excellent question to ask yourself is whether using the money in another way is the better option. Remember, when you make one purchase, it means you’ve committed the funds, and they can’t go toward anything else.
By realizing that everything you buy could be sacrificing your financial freedom, goal to pay off debt, or another target you want to reach, you may view each purchase differently. At times, that’s enough to steer you away from unnecessary spending, and it can also help you reaffirm your commitment to your other financial goals.
Do you know of any other questions to ask yourself before making a purchase that you want to tell others? Have you used any of the questions above to make sure you’re shopping smartly and want to let others know about your experience? Share your thoughts in the comments below.
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