Have you ever asked yourself whether it’s silly to buy something you’re eyeing?
Here’s another question to help you with that: “Can you afford to pay for it twice?”
Yes, I know you only want to buy one, but being able to afford it twice provides you with freedom over it.
Owning certain items, especially expensive ones, takes up mental space. It gives little marbles of doubt over what you will do if you lose it, damage it, or how you can maintain it.
If you can’t afford to lose the item, it owns you. But if you can afford it twice, you own it.
You don’t want to break or lose it, but if that happens, so be it. You can always get another one. It’s a good dipstick test that determines whether you can afford the item, both financially and psychologically.
Now here comes reality:
I’m an advocate for tracking your spending and ensuring that you aren’t spending more than you earn, but I think it needs to involve processes that work efficiently for most people.
Here’s what I advise doing before purchasing “that” item: monitor your spending for a few weeks to get a sense of how much money is coming into and leaving your home. Better yet, automate this process by linking your financial accounts to a budget-tracking app.
These types of tools enable you to easily review your spending history over a period of time and let you categorize your expenditures with a simple swipe, allowing you to see how much money you’re putting toward personal and business spending.
The question is NOT whether you want or need something. What matters is that your income and expenses are transparent so you can determine whether you can truly afford something.
