When you make a large purchase, it is important to take a few steps back to ensure that it’s something you really want and that it fits into your financial goals. Whether it’s a new Peloton bike or entertainment system, there are some things you should consider before making any major purchase to help prevent future regret.
Often, when you’re shopping for a large item, it may be tempting to go ahead and buy it right away. However, if you can wait 24 hours, it will give you time to calm your excitement, think about the pros and cons and come to a more rational decision. In addition, it will also give you a chance to decide if the purchase is even needed at all!
Another thing to consider is what seasonal expenses you’re currently facing, such as heating bills or cooling costs. It’s important to know how much these items will cost you before committing to any major purchases, as this could affect your ability to save money or pay off any debt.
If you do decide to purchase the item, it is always best to use cash, if possible, rather than credit. This will help avoid paying any additional fees and racking up interest on the purchase. It’s also important to fully vet financing options and understand the terms, fees and interest rates of any loan or credit card you’re considering using for the purchase. If you’re purchasing a house, for example, you should work with a licensed mortgage broker to help ensure you’re getting the best rates available.