You know that feeling — the one where you’ve 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. Oftentimes, big-ticket purchases are also spontaneous purchases, without taking into consideration financial risk factors. Take a few days after you’ve been tempted to see if it’s something you really need, and if it’s something you can afford. You find out, after time has passed, that you’re no longer interested in what you were going to buy.
- Figure out what’s driving your decision. When it comes to expensive purchases, it’s important to figure out if it’s 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’t afford it. Take some time to assess your emotional drive behind wanting to make this purchase.
- Look at your budget and any upcoming payments you might have. Let’s say you’re leaning toward making this big-ticket purchase — what’s 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’re going to pay for your big-ticket item. As mentioned before, if you are already paying down a loan or credit card, it might be wise to think twice. However, if you’re free and clear of debt or are simply in a financial position to make a big purchase, we’re 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.