This post is by our regular contributor, Erin.
Do you ever stop and ask yourself why you want to buy something? Or does the reason not occur to you until after it’s already paid for?
One of the worst financial habits many people have is buying things on a whim. We’ve become so accustomed to having the power to buy things on credit, we don’t stop to think about the repercussions the purchase can have until it’s too late.
If you struggle with talking yourself out of buying things, you should stop and ask yourself the following questions before heading to the checkout.
1) Can I Afford This Without Credit?
You might laugh at how obvious this one is, but there are people out there who bypass this barrier all the time. That’s why so many people find themselves in debt!
The question shouldn’t just be “can I afford this?” because people will always find a reason to justify paying with credit. However, if you need credit to buy something, then you can’t afford it. Plain and simple.
The best solution is to wait until you have the money in your bank account. You’re ultimately much better off saving up for it separately.
Also, take a second to realize how much more something will cost when buying it on credit. Credit cards have awful APRs for a reason – it’s costly debt that you have 24/7 access to. You pay for it handsomely.
That $40 pair of boots may end up costing you $55, depending on how long it takes you pay off your balance.
2) Why Do I Want to Buy This?
Yep, we’re doing some soul searching while we’re making purchases. It’s always worth asking yourself why you want to buy something. If you want to impress someone, to fit in, or to improve your outward appearance, your reasoning is flawed.
I know, it’s hard to fight the media on this one. We’re basically told exactly what we need to buy and when. We must keep up with the latest styles, technology, and social media trends.
I get emails sent to my “junk” email that make me go, “…Seriously?” all the time. “Last-minute offer!” “Prices will never be this low again!” “You need ____ in your summer wardrobe!”
Learn to make decisions for yourself. Having a spending plan really helps fight temptation (other than not paying attention to advertisements).
At the end of the day, you should only be buying things that will make you happy. Why waste your money based on the opinion of others? Trends change.
3) How Long Will I Use This For?
I always try to make purchases with the future in mind. This can help you avoid buyer’s remorse as well as save you money. This is a great one for impulse spenders, too.
I get distracted by nice things just like everyone else, but I’m always able to rein myself in when I realize a purchase isn’t very practical.
I’m a sucker for cute little knick-knacks, but as I’m trying to keep clutter to a minimum, I realize they’re just a waste of space. I appreciate the cuteness for a few moments, and move on with my life afterward. I barely remember it the following day.
Purchases that seem important in the moment usually aren’t. Thinking twice can save you money.
4) Do I Already Own Something Similar?
It always surprises me to see people making repeat purchases just because they either don’t remember they already own something similar, or because they want to upgrade (when what they have works completely fine).
I always shop with a list, and I always check my apartment before leaving on a shopping trip so I know what I have. I’ve never accidentally purchased a duplicate item that wasn’t food – rarely happens with food, too. If you have too much stuff and can’t keep track of it, that’s a sign you need to declutter!
5) Is it in Line With my Values?
Good old value-based spending. If you want an easy way to say “no” to purchases, this is a good technique to use.
I’ve highlighted the process in a previous post, but in a nutshell – create a list of your values, and order them from most to least important. Then check your spending. Are your values popping up a lot, or are you wasting your money on other things?
Next time you’re out, just ask yourself if the purchase is on your list of values so you can say “yes” or “no” with ease.
6) Do I Have Enough Space?
This is a quick question, mostly good for larger purchases that might take up a lot of room in your living space.
Do you have a place for it, or do you see it sitting on a shelf, up in the attic, or in the garage? My parents had quite a few items stored in the attic and the garage. I kid you not, I saw most of them two times: when we moved in, and when they moved out.
Space is precious. Don’t let just anything through your door.
A Real Life Example
To give you an idea of how much thought I put into a big purchase, I want to walk you through a real life example. (And I realize this is a little extreme, so of course, you don’t have to follow this to a T!)
I purchased a new laptop in 2014, but not after sitting on the decision for about two years. You might say I’m a little too bad about pulling the trigger when it comes to spending!
Could I afford it without credit? Yes, I had been kind of unconsciously saving up for it. I had a price in mind that I wanted to stay under as well.
Why do I want to buy this? When I finally bought my laptop, it was mostly because I had made the switch to freelancing, and I needed the laptop for mobility for when I traveled. I had to keep working while away from home somehow.
How long will I use this for? As long as possible. I had my last laptop from 2009 to 2012/2013, before it started dying on me. Ideally, I wanted to get around 5 years out of it. I realized I had to go for quality and possibly spend a little more (but still within my price range) to accomplish this.
Do I already own something similar? And here’s why this decision took me so long to make. I already had a computer perfectly capable of doing everything I needed for work. However, a laptop would give me freedom. On the other hand, I wasn’t planning on traveling that often. Decisions, decisions…
Is it in line with my values? Technology, as weird as it sounds to say, is actually something I place a lot of value on. It makes our lives easier in a number of ways. Besides that, I’m a huge fan of efficiency. If my computer is going super slow, that means I’m losing time. At least I’d have one thing for memory intensive work.
The result? I ended up buying a refurbished 2013 Macbook Air, and I haven’t regretted it at all. I was super happy when it finally arrived, and when I’m not using it, my fiance uses it, as he doesn’t technically have his own computer. We share all our devices. Win-win.
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I’m a big believer in taking time to think purchases through. By asking yourself these 6 questions, you’ll recognize your spending patterns and how to stop them. Say goodbye to buyer’s remorse and hello to more guiltless (and intentional) spending.
Do you ask yourself any of these questions when deciding whether or not to buy something? Which one is your favorite? Do you ask yourself anything not on the list? Share!
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LOVE this post, Erin! I swear we’re cut from the same cloth ;) I could see myself writing a post like this. I love the thought process behind purchases. It’s important to not be impulsive and this is exactly what this post is suggesting.
This is a great idea! I’m pretty good about thinking through a purchase before I make it. I also tend to put things in my cart, then change my mind before I hit the checkout.
Those are all excellent points to think through. I am not typically an impulse shopper but yesterday we found ourselves throwing money at a problem! Um, let’s just say that an unnamed member of our family is not up to par on personal hygiene. We have tried to resolve this on many occasions. Yesterday, it came to a head and resulted in not only the expected purchase of some school clothes but all new bedding, closet re-organization, and a mass amount of toiletries.
We do some of these questions prior to making a purchase, though we tend to go with a simple “Do we know where the money is coming from for this?” before most purchases. If it’s budgeted for and we know the money is there for it, and is in line with our goals/values, then we have the freedom to spend. If not, it’s a relatively simple decision to make. :)
I also need to buy a new laptop, but I keep putting it off. The one I have is currently working, but it is sooooo slow. I’ve cleaned up this laptop and done everything to try to make it run faster, but to no avail. I have a hard time pulling the trigger because this one technically is working, but I know hurting my productivity because it is so slow.
Erin, this is awesome timing! I JUST (as in this weekend) bought a new laptop for many of the same reasons you did (including the wanting my old computer to last 5 years!) Two things kept me from making the purchase sooner though: 1) having a similar (albeit dying) computer and 2) fear of obsolete technology. Not like my MacBook Pro would become obsolete any time soon, but I hate when Apple releases new technology like 2 months after I’ve bought something from them!
Luckily, the laptop I bought is a newer model (no getting obsolete anytime soon!) and it checked off all those questions you featured above. Paying it off without using credit was my biggest push to get it – it’s so freeing not to have to worry about making monthly payments!
I definitely ask myself these questions before purchasing something. I also am not the type of a person to just buy something on a whim, probably because I hate going shopping. So when I do go shopping (mostly online) I make sure it’s for something I need / will actually use.
Great questions to ask. I’m pretty good with waiting to buy things but sometimes when it seems like a good deal, it’s tough to pass up. I need to stop and ask the above questions. Number 6 is an important one since space is at a premium where we are.
Loved this! I find this “Is it in Line With my Values?” to be the most important question to ask myself when making a purchase. Lately I’ve been really trying to simplify the amount of stuff I bring into our home and find that most items are not worth bringing into our home for the pure fact that they compromise my overarching goal of minimalizing a lot of what we own. We are by no means minimalists, but I sure do save a heck of a lot of money and also decluttering down the road by not buying things I don’t absolutely need. Great post Erin!
I try to ask myself all of these questions before buying something, but sometimes it isn’t easy! One I am really trying to get better at is “is it in line with my values?” While I may be able to afford a new dress, buying tons of new clothing isn’t really in line with my current values.
Do I have enough space is the question we always forget to ask, and it drives me nuts! We bought a new fridge without a plan to get rid of the old one, and our house is tiny (okay, small). Thankfully, we managed to sell the old one within three days, but it was a bit embarrassing to have a fridge in our living room when we had friends over for pizza.
We’re also particularly bad at answering this question when we buy tools because the answer is that we have no more space for tools, but we continue to buy them. Great list!
I like to wait 24 hours or more before making a big purchases. Just having some time to think/ consider a purchase usually makes me reconsider. Grocery shopping with a list is a must, if not you will for thinks you need and don’t things you don’t.
I agree that talking yourself out of purchases is a good to skill to develop. I think ruling out credit for purchases (other than a mortgage) is a great principle. However, even if you can afford something it doesn’t usually mean you should buy it, which is why the rest of your questions are so helpful. I like to ask myself why I want it–do I want to feel good or gain a convenience I don’t really need? Also, I consider if there is a cheaper way to get the same thing–whether it’s substituting something I already own, fixing something I own, or getting it used.
Asking ourselves why we are buying something is so important. Usually we are just trying to fill some void and there is likely a better, less expensive way to fill the void.
I *never* want to buy things, so that’s always my first go-to. But if something comes up repeatedly, then I’ll consider it.
My husband has been lobbying for an exercise ball (the ones that inflate) to use in conjunction with his PT. I resisted because I know for a fact it will sit around unused. I was going to relent, but we’ve now decided he should switch to aquatic therapy. So it’s a good thing I avoided the purchase.
But I’ve certainly made the mistake of thinking or projecting that we had the room/need for something. And I regret it about 80% of the time.
As we’re in the middle of a war with our debt, the question we should ask is whether the purchase is absolutely essential. There are occasions when we neglect to ask that question and buy something because “it would be nice” to have it or “it’s a good deal.” However, we’re getting better as time goes on and we become more motivated to reach our goals instead of buying miscellaneous stuff.
It’s easy to make an impulse purchase for the immediate gratification. I think it’s a great idea that for every purchase over $XXX you set a standard list of questions to answer for yourself like those listed in this post.
I used to buy on whims, but I’m kind of like you now, which can be good and bad. My laptop was dying as well for a long time before I pulled the trigger on a new one. I was amazed at how much time I was wasting waiting on the old machine to do just about anything. I think there is a fine line between mindful spending and actually losing money by trying to make due with less than optimum equipment.
Financegirl Thanks, Natalie! I figured I tend to overthink purchases so I’m glad I’m not the only one!
holly3 I do that all.the.time. Both in a store and online. I just can’t break the habit – spending money is pretty hard for me.
Mrs Crackin the Whip Ah, throwing money at a problem is a bit different and interesting to think about. I’ll admit, I’ve made some purchases quicker than others, but I still go through the same thought process to ensure it’s worth the money.
FrugalRules Once you get the basics down you can definitely streamline the process. That’s what has been happening for us lately. Getting the goals and values down initially was the tough part, but we’re pretty clear on where we stand now.
mrandmrsbudgets Yes, productivity is a huge thing for me, as well as my sanity. It sounds silly, but I just don’t have the patience or time to deal with equipment that isn’t performing well. If you’ve really tried all the solutions out there, I’d think about setting aside the money for it. That might make getting a new laptop a bit easier!
sunburntsaver Oh I totally know how aggravating it is to have a newer model released soon after you purchase yours. I compared the refurbished 2013 Air I got with the newer model that was out, and the differences were so negligible I figured whatever they put out next wouldn’t be too revolutionary. I definitely recommend being able to pay off purchases immediately versus financing them. 0% offers are great, but I personally like simply having the money spent.
ferventfinance Haha, I’m with you on hating shopping. I try to do it the least amount possible. When I do go, I try to make my purchases worthwhile.
Andrew LivingRichCheaply The good old deal “trick.” I imagine it’s gotten more people than not. It sounds weird to say, but taking price out of the equation can help sometimes. Simply asking if you need the thing you want to buy may work as you’re focusing on the actual purchase instead of what you’re paying for it.
Christina@EmbracingSimple Thanks! Yes, I totally agree. We’re also far from minimalists, but I’ve gotten so sick of seeing so many things in our apartment go to waste. It’s made me realize we need to be much more intentional about what we’re bringing into our space. Especially because moving with less things is much more appealing!
Ali_AnythingYouWant It’s certainly not easy, especially if you’re used to impulse shopping or just not consulting your spending/budget beforehand. Defining your values really helps!
Hannah UnplannedFinance Thanks! Ahh tools – my dad had (still has) SO many tools in the garage, it was ridiculous. He must have had triplets of things in there. It makes borrowing them easier but there was absolutely no reason for his massive collection.
DebtDiscipline Delayed gratification and sleeping on a decision does wonders. So do lists! I try not to shop without one because I’m always guaranteed to forget something!
Pretend to Be Poor Yep! I like that last one, too – if you do decide to go through with a purchase, it’s smart to look for ways to get it for less. I’m a big proponent of not paying full price if I can help it.
SimplySave So true, especially when it comes to consumer goods in general.
AbigailP I’m usually the same way – if I can avoid buying things, I’m happy. I suffer from buyer’s remorse very easily because of that, too. So many things can change within a few days or even a week. That’s why I always save receipts, too!
Harmony@CreatingMyKaleidoscope Yes, since paying off debt is our priority, I’ve pretty much ruled out most unnecessary or frivolous purchases as well. Great example of prioritizing other financial goals over your spending!
Financial Tour Guide Good idea! I practice this even with smaller purchases, just out of principal, but starting with slightly larger purchases can help carry the habit over.
Eyesonthedollar It’s definitely a double-edged sword. I actually don’t like how long it can take me to reach a decision on spending, it’s just difficult parting with that much money all in one shot!
If I really like something in a store that isn’t actually a necessity, I play a little game with myself: I walk away, and if I come back and remember how much I wanted the item (usually a piece of clothing) I’ll pick it up. Since I don’t shop often, I rarely go back!
With larger purchases, I definitely ask myself these 6 questions. I did make a relatively quick laptop purchase last month, but still considered all the angles before making the leap.
AlexandraRSF I do that, too, especially if I’m in a department store and have to shop for other things. It’s a good way to test your interest! And sometimes we’re pressured to make decisions to purchase things quickly. That’s not always a bad thing – as you said, you still reviewed everything!
I actually did the same thing when looking for a new laptop. It took me a while to face the fact that my eight year old computer needed to be retired. I sought out every way to get it cheaper. I resorted to using credit card points, buying store gift cards at a discount on websites, and even contemplated making a pit stop in another state on a brief trip to take advantage of lower taxes! I was pretty committed to saving some dough.
I think that all of these steps are great when debating if it’s worth it to making a purchase, especially if you were not planning on making it before. The list may look daunting but these concepts can be run through quickly once you get used to thinking this way when facing a purchase.
The Mill Street Times I almost did the same thing – Best Buy was having a sale on the old models of the Macbook Air, but they were sold out in all stores here. Sadly, the one in the state over (on the way to my parents house) ended up being sold out, too. I like all the methods you used!
Yes – the list is a little extensive, but it’s really not that bad once you get used to it. You may not need to go through everything on the list for some purchases!