By: Ms. J
Every so often, if not every day, many have to wonder about whether they can afford to make some purchases in their life that they need or want. This can range from buying essentials such as food or splurges such as diamond earrings. I know I have fallen in both spectrums at certain points in my life whether it is because I put myself there with bad spending habits or I simply at that point was not making enough money to pay for it all.
Both the rich and poor ask themselves this question. Now I’m sure many of you are thinking that the rich do not, however it is not true. Sometimes it is easier to get rich than to stay rich. Staying rich involves making key investment decisions and not buying because you can but because you need it. I am not in no way arguing that if you feel you deserve a splurge and can afford to do so that you cannot. I am simply stating that reviewing your accounts, your goals and budgets; should you?
Before making that splurge on a new car or shopping spree, have you…
1. Reviewed your account ensuring that there is enough money for purchase
2. Made sure that you have a safety net (ex. Savings of 3x your total bills)
3. Looked at whether or not this align with your overall goals
4. Decided if you need it now or can it wait?
5. Researched into buying it, is this the best time, are you getting more bang for your buck?
When making purchasing decisions, some CEOs today would rather invest in stocks, bonds etc than buy materials things that would depreciate. Understanding the best way to spend your money is key to a good investment.
Think before you buy.