How many people think before they buy? I do not have an accurate answer. What I do know is many people that I have asked that question to have admitted that they do not. If they feel that they deserve something, they find a way to get the money to make the purchase whether it’s by borrowing from someone or putting it on a credit card. Is that the wise thing to do? The obvious answer is no. However, most people do not focus on the obvious when it comes to spending money. Emotions win out over whether the item or items can be afforded. I personally recommend that before you make a purchase, any purchase, think whether you can afford it (is there an allocation for this expense in your budget) and will spending the money now on your wants deprive you from getting your needs when the time arises. A very famous financial advisor coined the phrase “Can I Afford It?” Suze Orman asks this question to her listeners who call her show for advice on purchasing something out of the ordinary.
I will share an article with you written by Mitch Tuchman for MarketWatch referencing how Suze Orman asks that very question as it relates to your retirement. I hope you will be able to say that you can truly afford it, because you are prudent with your money.