Personal Finance Tips on Making a Big Purchase

There comes a time in our lives when we were confronted whether to make that big purchase or not. It may be a car,  a motorcycle, a luxury bag, or simply the latest trends in technology like gadgets. 

Making these big ticket item purchases will surely hit our savings goal. Therefore, purchasing these items should be carefully planned. 

How do you plan such big ticket item expenses? Below are some of the tips that you should consider.

Do I Need This Item?

First and foremost, you should ask yourself if you really need it. Are you just compelled by peer pressure to buy it? This helps you determine if you need the item or if it is just a luxury purchase.

What are the needed features that you want from the item that you want to buy? If you are to buy a mobile phone, does it need to be a high-end phone? What would be the main use of it for you? Is it for gaming and photography? Or you’ll just use it for texting and calling? Again, separate the features on a ‘must have’ which are your needs from ‘nice-to-have’ which are just your wants. Never buy something because it’s what everyone else wants, or to be a show-off.

When Do You Need It?

The next question is when you need it. Are you in need of it urgently? Do you need it in two weeks? Determining when you need it makes time for you to save for it. In fact, you may be able to borrow the item temporarily from a friend or family member while you are saving up for the big purchase.

Did You Compare Prices?

Your biggest consideration when it comes to your budget is the price of the item. Before buying, compare the prices of the item for different brands from different stores. More importantly, if you don't need it urgently, wait for it to go on sale as you can save a lot of money from the discounts.

Can You Find a Secondhand Item?

Making a big purchase will surely hit your budget. Looking for used or secondhand items is a great way to save money on a big purchase. Take time to research your items to determine if you really need a brand new one or a secondhand is already a good option for you.

Did You Research for Reviews?

If it is a big item purchase, then you can be assured that there are reviews of it available online. Research the item you’re eyeing to buy. Read the reviews about it and checkout the reports about its quality and durability. You can also look at buy and sell sites to check out how much is the resale price of it to see how well the value holds up.