We buy things every day. From family homes to new shoes.  It is a part of life however no one likes to get ripped off or buy something they don´t ultimately need.  So in order to lower your chances of making a bad decision ask yourself these simple questions when you are just about to buy.

If you find that you answer negatively to a few or more of the following questions then you should think more about whether you need to buy it.  If you answer all questions positively then it is safe to proceed.

LOOK FOR RED FLAGS

THE PRODUCT

Can you see it? Can you touch it? Does it work? Could it be damaged without you knowing?  Is it a fake?

THE SELLER – WHAT IS IN IT FOR THEM?

A big question you should always ask.  Could this make them bias as to the information they are giving you?  Do they appear trustworthy? Are there any testimonials or reviews?  What is the likelihood that they deliver top quality products? (difference between a street seller, market seller, internet seller, branded high-street store).

THE SITUATION

How do you feel?  Are you in a notorious tourist market? Are you starving at the supermarket? Are you emotion today and shopping for shopping´s sake?

PUT IN CONTEXT

COMPARISONS

Do you have comparisons? Do you have any direct comparisons?  Comparatively is it high quality or good value?  Proceed with extreme caution if you have no comparisons or go and find some comparisons to check the value, price, quality and suitability.

How does it compare to the others? Would you say this is exactly what you are looking for or is this the best option available at the time? Are you OK with that?

What is the OPPORTUNITY COST?

What would you be giving up to go ahead with this purchase? Once you have paid for something that money cannot be used on anything else so make sure you are using your money wisely, think what else you could use that money for and decide if the purchase is still the best option for you.

NOW VERSUS LATER

Do you need it now? Is there a benefit to having it now or waiting till later?  Could the price change or there be a better option in the future?

QUALITY OF LIFE

Will it make you happy or improve your lifestyle?  Sometimes happiness is enough as we are here to enjoy ourselves but just don´t use this reason for every purchase.

FINALLY - IF YOU ARE NOT SURE WALK AWAY

Walking away lets you view the situation from a different perspective, if you leave the shop and move onto the next and don´t think about it again then it is probably good that you did not buy it. If not and you go back and buy it, then you know it was not an on-the-spot emotional decision.

SO REMEMBER TO THINK ABOUT:

Product

Seller

Situation

Comparisons

Opportunity Cost

Now vs. Later

Quality of Life

Hope that helps and gives you somethings to think about next time you are trying to decide on what to buy.  Remember every time we buy something we are making a financial decision so it is useful to get into the habit of using financial analysis (like what you have just done above) to make informed decisions.  And once you make smart buying decisions this will lead to more money to save, invest and enjoy nicer things at a later date too.

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