5 Important Questions to Ask Before going on a Splurge

Good news!  We are slowly seeing some improvement with places opening up again.  The government is slowly relaxing the lockdowns here in Canada.  I see some of our neighbors in the United States are even fully open.  All that time (a year and a half and counting) would have definitely changed our spending habits. 

We’ve managed to build up a nice little savings from buckling down on recreation (after all: nowhere to go or travel to) or whatever you choose to cut back and save on.

Now is the time you’re telling yourself, ok I’ve been really diligent with savings, why not treat myself?  I deserve it!  I can cut back or put it back into my savings.  I only live once!  Surviving this pandemic thus far deserves a REWARD! 

Or whatever you’re saying to convince your inner self that this impulse splurge is needed – be it a new pair of shoes, a new car, the latest 4K television, the new PS 5 that just dropped in cost, whatever the purchase, here are 5 important questions you need to ask yourself to prepare for that splurge:

1. Why do I need this item?

Ask yourself if this item is a NEED or a WANT?  Maybe it’s a purchase for your well-being: a Tempur Pedic mattress recommended by your doctor for your backache and better sleep or to maintain the house. 

Time to upgrade the kitchen and back patio to put some equity in the home and enjoy the space, then, in that case, it is definitely needed. 

If it’s a luxury purchase because you think it’s attractive, trendy, or fun to have, chances are, it may be just a WANT.  Analyzing why you want something can make the purchasing decision easier. 

       2. Will I have difficulty paying my bills if I buy this item?

You see the item being sold is very popular, don’t feel pressured to be “in the game”.  At the end of the day, it’s YOU and not everyone else who is stuck with an added bill. 

If you know the purchase will cause a lapse or shortfall in your budget for your monthly bills, imagining the extra unwanted stress of coming up short on your bill payments or an unexpected emergency arose and you can’t afford to cover it due to this impulsive splurge is enough to curb that spending enthusiasm!

       3. Can I find a used version of this item?

I get it.  Purchasing “brand new” is very satisfying and even appealing.  But I say, before splurging, ask yourself if you can get the exact item used.  Chances are the used version will work just as great! There are so many websites, especially AMAZON that sell items that are used and they are just as fine.  You will not know the difference. 

       4. Can I pay for this item in full?

Let’s just say you’ve been eyeing that new Samsung 4k 8000 series 75-inch smart tv for months.  It’s finally at a decent price of $1000.  If you pay for it in full, you are just spending exactly $1000.  But if you use your credit card and take 9 months to pay it off, with an average interest rate of 15% you are actually spending over $1200 for that television, is the interest on top of interest worth it because you couldn’t pay for it outright? 

If you are looking to splurge on something brand new and you do not have the money to pay for it upfront, maybe holding off until you do will be a better idea.  You’ve just also dodged a credit card bill bullet that would have hit you straight in your bank account.

       5. Can I find this item at a better price on sale?

Don’t you feel like kicking yourself when you made a full-price purchase, I mean all-out had-to-have-it splurge, and then a week later, your friend is gloating about getting it cheaper or you see the very same item on sale for more than half the asking price?  Ugh!  I hate that! 

So I’ve learned to ask myself if this item is going on sale in the near future?  Is it currently at its best price now?  I know you get the feels and throw all judgments out-ah-door when you REALLY want that splurge, but it’s always a good idea to shop around, you might find the same item for less or priced better at a similar outlet. 

We all have our “one-day” dream purchase.  It’s not always easy to ask yourself these questions when that amazing deal comes around.  But believe me, asking yourself these important questions, can definitely save you from dwindling your hard-earned savings away unnecessarily with the swipe of a card or a click of a button. 

Do you question yourself before diving into splurge mode?  Comment below, I would love to hear from you. 

XOXO 

“Some things are worth the splurge.”

KIEMAN SHIPKA