Deciding When To Spend Money On New Stuff

I think this is one of the the things I struggle with the most when it comes to my budget. Do I need a new vacuum? Do I just want one? If I do actually need one, do I need it more or less than something else? How much should I spend? How long do I think it will last? I could go on and on and on! There are many ways to decide whether or not you should spend money on something new. Today I will share with you the two things I consider most. Obviously, this could be very different for you or your family.

Checking My Budget – When To Spend Money

Check your budget. The first thing I do is check and see how much my budget allocates for the particular category the item may be in. I also evaluate whether or not the thing this money will buy is an emergency or not. If this is a car repair, and I need my vehicle to get to and from work safely, than it is important and likely needs to be done right away. A car repair would come out of my emergency fund, unless I had enough money left in my discretionary spending fund or I had been earmarking money specifically for when this happened.

A vacuum on the other hand, is not an emergency. This would come out of a household goods budget, discretionary spending, or I could even wait a few months to save up. If I don’t have the cash, then the answer is no for now. From there I can assess just how much I need that vacuum, do my research, and wait for a smart buy.

Values Check – When To Spend Money

I always check the item I want to purchase against my personal values. Is what I am spending money on adding to my life? Does it bring value to me? Is it more or less important than my other goals such as spending time with my family, buying my mom flowers on her birthday, or traveling at least 3 times a year. Checking my values and goals helps me determine whether to spend that money or not.

It is important to remember that small luxuries and purchases add up to a lot over time. If you don’t know what the little things are costing you or whether or not they are important, I would recommend these two checks. Having a budget and getting in line with your goals is a big step toward a fulfilled and happy life!

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