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5 Questions To Ask Yourself Before Splurging On That Big Purchase

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5 Questions To Ask Yourself Before Splurging On That Big Purchase

Knowing that you have to make a large purchase can be nerve-racking. You might start to second guess yourself on whether making that big of an investment is necessary, and whether you're capable of making such a large payment.

Before you move forward with that purchase, consider these five tips to prepare yourself.

Do I Need This Item?

The first thing that you should ask yourself is whether or not you need the item you want to purchase. Maybe the purchase is related to your well being or maintenance on your house. In that case, it might be a purchase you need to make. If it's a luxury purchase you intend to make, then perhaps you should think and decide whether you need to buy it or not.

Is There Enough In My Bank Account?

The second question you should ask yourself is, do you have enough money to afford the purchase? While this might seem like an obvious thing to consider, many people get caught up in the notion of how badly they want to own that particular item and never stop to think about how they can pay for it.

Take a look at your bank account first and decide if what you want can be covered with the money you have on hand without having to deplete your emergency funds.

See Also: 3 Important Steps To Take Before Making Your First Big Retirement Purchase

Can I Find A Used Version?

While purchasing something “brand new” might be more appealing, in most cases, you can often find that exact same item used. Many websites, like eBay (NYSE: EBAY) or Amazon (NYSE: AMZN) often sell items new and used, and the used version will work just fine.

There are plenty of websites that sell the used item you want for a much lower price, so think about whether it matters that much to get what you want brand new or not.

Is The Upgrade Worth It?

For some large purchases that you need to make, they might come with additional features for extra costs. At this point, you might be thinking, “I’m already spending so much already that I might as well spend a little more to get the very best.” At this point, you should consider whether spending those extra dollars for an upgrade will vastly improve the product you want, or if you can get by with what you need.

Will The Item Go On Sale?

Before you make your large purchase, do some research and find out if what you want will go eventually on sale. If you're willing to wait a few months before buying you might discover that what you originally wanted can be purchased for a much lower price than initially listed.

Posted-In: Education Personal Finance General Best of Benzinga

 

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