Spend Or Save? The Importance Of Thinking Before You Buy

Money can drain away in the blink of an eye when you're shopping. Even with minor items, the cost can mount up fast and make a big hole in your budget. If you're finding this, it's worth double-checking that you really need each item you select before going ahead with the purchase. You might decide, on second thoughts, that the saving would be more worth having than the product. Here are a few questions to ask yourself before clicking the "Buy Now" button or queuing at the store checkout:

How important is the item to you?

Products that look tempting online or in-store can lose their shine as their novelty fades. A garment that looked irresistibly attractive on display, for instance, may seem less special when you've worn it a few times. In hindsight, you might wish you'd saved the money for something else. With each item you pick, ask yourself whether you really need it or whether you could manage without it. This way, you can keep control of your finances while still buying the things you need.

Are you unduly tempted? 

It's natural to be attracted by an advertised item: that's the seller's intention. It will be promoted in every possible way to draw your eye and win your heart, so it's hardly surprising if it seems like a "must-have" item online or in-store. Check the buyer ratings and review comments, especially those at the lower end of the scale, and you'll see the item in its true light. If numerous reviewers rave over it, it could be worth buying, assuming it's the type of product you were looking for. However, you'll still need to evaluate it yourself to make sure.

What else is on your shopping list?

It's important to consider other expenses before making any inessential purchase. In particular, you'll always need to keep enough money back to cover your day-to-day living costs, including invisible ones like electricity and rent/mortgage. If you have any extra expenses to stretch too soon, such as birthday presents, travel costs, or home repairs, they'll have to take priority, too. The smartest way to shop is to do the math first and set yourself a spending limit before starting.

Would the saving be more valuable?

Every time you resist a product and walk on by, you'll be saving money, and every saving you make will benefit your bank balance, building financial security for the future. With this in mind, you can measure your potential purchase's worth in the light of the bigger picture and weigh up the pros and cons of spending or saving. If you're sure you'd be better off with the product than the saving, by all means, go ahead. You'll appreciate it all the more afterward for having reaffirmed your decision from a clear viewpoint.

Shopping choices can be very tricky, but if you weigh up the options with a cool head, you'll know you're using your money wisely, whatever you decide. Stepping back from the checkout can be as pleasing as going ahead when you think of that savings-investment you're building.