There are some things in life you just can’t put a price on but when it comes to material goods it doesn’t hurt to consider their true value to you before you decide to part with your cash.
It can be anything from a dream home to a stylish car that you have aspirations to buy, but the same rules of engagement apply, which is to consider factors like cost and usefulness in order to arrive at what you can consider to be an item’s true worth to you.
Here is a look at how to make better spending decisions by asking yourself some key questions before parting with your money. Including a different way to reach your spending decisions, plus some other suggestions aimed at helping you to manage your money more wisely and efficiently.
Looking Beyond a Good Deal
You probably don’t have the time or the inclination to look too deeply into every item that you add to your shopping or buy online, and many of our instant decisions are spurred on by the price being the defining factor.
If it seems like you are getting a good deal and it’s something you want you might decide to part with your cash without giving it any further thought.
What about if you take an alternative view and start to base your spending decisions more around your values?
You will have a set of values that you are committed to, such as wanting to help others, protecting the environment, supporting local businesses, amongst others. What is interesting to consider is how that mindset could change your spending habits when you apply a set of values to your buying choices rather than concentrating on price alone.
For example, if you are looking for a car that has low emissions and ticks all the right boxes in terms of what make and model is most in line with your values, CarAdvice has info here to help you narrow down your choice.
Basing some of your purchasing decisions around greater alignment with your own set of values is one way of changing your spending habits in a positive way.
Finding a Better Way
That is just one way of changing your spending habits and along with basing some of your decisions to fit with values that are important to you, there are also some other positive adjustments you can make to help you make better financial decisions in the future.
Look at the Bigger Picture
Most people don’t commit to something hugely significant like buying a house without having some sort of plan for the future, so you know whether the house meets your immediate and future needs and might even prove a useful stepping stone towards something bigger later on.
Take that mindset and apply to a whole range of purchasing scenarios.
It is a good idea to write down a list of pros and cons and possible future outcomes. For instance, if you are thinking about buying a car, think about how you are going to afford the payments if your circumstances change, and work out whether you have factored in future maintenance and repair costs into your affordability calculations.
Delaying a decision to weigh up all your options and run through a list of possible future outcomes, is never a bad thing to do. At least when you actually pay your money for the item in question you will do so with a greater level of confidence that you have thought everything through properly and covered most of the potential angles.
Two Heads are Sometimes Better Than One
You might trust your own judgment implicitly and after all, it’s your own money you are dealing with, but it can often work well to get a second opinion from someone you trust and respect to tell it to you straight.
Talking over a major purchasing decision with someone whose opinion you value can provide you with some valuable feedback, and if nothing else, it will help to confirm that your decision is a sound one.
There is an old adage that suggests you think slowly to prosper, so avoid rushing into a big financial decision before you have given yourself enough breathing space to think everything through and consider all of your available options.
Putting a price on something you want to buy goes beyond the price tag and involves a bit of deeper thinking, that often pays off financially in the long run.
Morgan Burton shares his thoughts and tips on spending money, or not spending it in most cases! Get your finances a step ahead with his helpful words.