For many people, making the distinction between “wants” and “needs” is difficult to do. No matter how hard we try, we end up buying stuff we don’t really need because it made us feel good at the time.
As my family and I have fought back from a mountain of debt over the last few years, we have developed several techniques to help decide whether or not a purchase is in line with our financial goals.
If you’re one of the many who routinely find themselves regretful over recent purchases, I invite you to utilize one our most effective techniques…
How Much of my Time Does this Purchase Represent:
The techniques is quite simple and involves relating the cost of the item to the number of working hours it represents.
I ask myself “How many hours, days, or weeks at my job, does this purchase I am about to make represent?”
Is a weekend getaway really worth a day’s salary?
Is buying a new flat screen TV or set of golf clubs really worth a week of my time?
Is that new speedboat really worth 6 months of my time?
Thinking of purchases in terms of your time forces you to think with your heart, helping you focus on your financial priorities. If you are comfortable with the amount of time the purchase represents is comparable to the joy it will bring, then you are probably staying within the bounds of a healthy financial plan.
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{ 1 comment… read it below or add one }
I always care not to buy something that I don’t want. Needs first than wants =)