Happy Long Weekend You know that feeling – the one where you鈥檝e got your eye on something big, expensive, and perhaps not in your price range, and you know you have to have it. The itch to make a big-ticket purchase is not abnormal, but you have to know when to take the plunge or put your wallet away, no matter how tempted you may be.
Before you give in to temptation and make your purchase, here are a few things to consider first:
Take a minute to think about it.聽
Oftentimes, big-ticket purchases are also spontaneous purchases, without taking into consideration financial risk factors. Take a few days after you鈥檝e been tempted to see if it鈥檚 something you really need, and if it鈥檚 something you can afford. You find out, after time has passed, that you鈥檙e no longer interested in what you were going to buy.聽
Figure out what鈥檚 driving your decision.聽
When it comes to expensive purchases, it鈥檚 important to figure out if it鈥檚 something you actually need, or something you just want. Buying something just because you desire it is not a problem in and of itself – but it becomes a problem when you can鈥檛 afford it. Take some time to assess your emotional drive behind wanting to make this purchase.聽
Look at your budget and any upcoming payments you might have.聽
Let鈥檚 say you鈥檙e leaning toward making this big-ticket purchase – what鈥檚 next? First, take a look at your monthly budget and how much financial freedom it brings you. If you are already paying off debt from a loan or credit card, it might not be a good idea to add to that debt.
Decide how you鈥檙e going to pay for your big-ticket item.聽
As mentioned before, if you are already paying down a loan or credit card, it might be wise to think twice. However, if you鈥檙e free and clear of debt or are simply in a financial position to make a big purchase, we鈥檙e here to help. Polam offers low-interest personal loans for our members, and our VISA credit card is designed to work with any lifestyle. Visit one of our branches, and we can help you get started.