This week its going to be a short blog to discuss my attitude and though process towards “big ticket items”. By “big ticket items” I am referring to expensive items that we all buy, such as holidays, flagship phone, car, etc. really anything over couple of hundred euro. So….let’s begin.
As I mentioned previously I used to be very bad with money management and a lot of the reason for this was due to my poor decision making when it came to buying high tech, clothes, holidays, video consoles, tv etc, without much regard for my budget/bank account. I was very easily brainwashed by adverts and liked the finer things in life. I purchased a lot of things simply because I “wanted” them not because I “needed” them. It’s a great idea in life to concentrate on cutting minor costs where possible by spending less money on small things such as Starbucks, dining out, snacks etc. that end up adding up to a lot more than just “minor” costs financially. However, one unnecessary “big ticket item” would blow all of your small savings out of the water. Think about it, after you suffer and persevere on saving a euro her or a euro there and delighted with yourself when you save couple of hundred euros by doing so, you then go off and buy that new iPhone for €1,000. It defeats the purpose, right?
This is why I have introduced something called “Cooling off period” in my life. It is a very basic concept. Here’s how it works, as soon as I get sucked in by the latest tech craze or see a sale that gets my heart pounding with excitement I stop myself and walk away for 3 days. I take 3 days to think about, weigh up my options, consider my financial situation etc. and on the 3rd day I make a decision to purchase it or not. 9/10 times after three days the buzz and excitement disappears and I go off the idea of buying whatever it was that had me on the hook. I saved hundreds of euros for something that I didn’t even need. Score! However, if after 3 days I still want to purchase this item I go and do just that. I then know that it was the right decision as I have tossed about the idea of buying it in my head for a period of time and its still has me on a hook, then it will be worth the money.
I hope this idea of having a “cooling off period” is something you all can implement in your life and it could result in you saving hundreds if not thousands of euros just by simply resisting your initial urge to buy what you see. It takes a bit of practice as we all like the finer things in life and when there is a good offer on for something you like it is hard to walk away and think about it. However, once this is mastered it is a vital tool for financial security. With your savings on “small ticket items” as well as thinking carefully about your “big ticket items” prior to splashing the cash, your bank account will grow higher and quicker than ever before. Then you will have more money to give into those urges without feeling guilty you have done so.
Thank you very much for reading this “short and sweet” blog. It is a minor topic to be discussed but it plays a huge role that could benefit anyone on their financial journey no matter how small or big your budget/bank account is. The rate of “impulse buying” is higher than ever as companies with their big marketing budgets find more and more clever ways to lure us into thinking we must purchase their product as soon as possible or we will miss out. My advice to you is to STOP and take 3 days to evaluate your options and your desire for the product before you hand your hard-earned cash across the counter and purchase something you don’t actually need.
As always, I welcome your comments, feedback, personal stories on the topic and more via the comments section. Thank you all for reading and I appreciate every comment, like and follower.
Thanks again and talk to you on the next one.