Many people have learned how to make spending saving tradeoffs.. When they make spontaneous purchases, they ask this essential question:
“What’s The Tradeoff?”
It’s key to pause and ask yourself, when coming across something you want and wasn’t planning on buying, “What’s The Tradeoff?“.
Sometimes that’s real easy to answer and reconcile. Other times not so much.
Many wrestle with ‘yes/no/yes/no’ or with ‘am I buying this to impress someone or be someone I am not?’, which of course is sometimes the underlying motivation, and just reinforces that the Marketing people for the product did a good job!
But, whenever you do succumb to an impulsive purchase that you hadn’t planned on, focus on the value and enjoyment it will bring you. It might help to also commit to the purchase for a minimum number of years, to make sure I get my money’s worth.
Favorite Purchase
My favorite kinds of purchases?
The ones that I eagerly anticipate, set money aside for, and look forward to making.
I approach those purchases with purpose and intent, which helps me not feel like I made an impulse purchase without thinking through the consequences to my financial goals.
Being first committed to a savings goals and viewing them as non-negotiable also helps, because you can realize that you are still on track to reach those goals that the savings represent, even if there is a savings tradeoff.
Impulsive Purchase
However, when I make an impulsive purchase, that’s not the end of the world.
Next Step
Ready to take the next step and work with a fee-only CFP? Reach out to schedule a Discovery Meeting to learn more.