This past week on the JW’s Financial Coaching Newsletter I wrote about how one of the common issues I encounter when working with clients is how to balance long term goals like saving, investing, or paying off debt vs. making a big purchase such as a car or a fancy vacation.
That question inspired me so much that I’ve decided to do an upcoming lesson of the podcast dedicated to the same topic. In anticipation I went ahead and shared the three questions on social media that Lisa and I ask ourselves before we make a big purchase. They are the following.
- How much is it going to cost?
- How are we going to pay for it?
- If we have to budget for it, what will we need to change in our budget?
I received some pretty good feedback that I’d love to share with you guys, the first was from LinkedIn
The second was from Facebook
Both of those were interesting responses that I really hadn’t thought of before. We’re all susceptible to impulse purchase so determine if something is truly a “need” vs. a “want is a great exercise to help reduce the instances of impulse purchases.
In addition maintenance costs are one of the hidden costs we forget to include when it comes major purchases such as a home, car, or electronic purchase.
But what about you? What do you like to ask yourself before you make a purchase. If you don’t have anything, what’s something you want to do the next time you are considering a big purchase?