*Disclosure: This page may contain affiliate links. We receive a small commission if you purchase something we recommend (at no cost to you). All opinions remain our own.

How do you decide if a purchase is worth it?!

With so many shopping temptations and constant ads, it can be tricky to figure out the right time to buy something.

Shopping isn’t just about spending money – it often involves our emotions, impulses, and desires. From the joy of retail therapy to the barrage of advertisements, our wallets face many challenges. But before you buy something, it’s important to consider certain factors.

How do you feel right now?

When considering making a purchase, take a moment to reflect on how you feel at that very moment.

Your emotional state plays a significant role in determining whether it’s the right time to buy something. In fact, research has shown that shopping can release feel-good hormones, which might temporarily alleviate feelings of sadness and anxiety. However, the happiness from a shopping spree is often short-lived.

Always remember that when you’re in an emotionally charged state, your judgment can become clouded. This might lead to impulsive decisions and overspending.

As a general rule of thumb, it’s best to make spending decisions when you’re calm and relaxed, so that you’re making decisions with a clear head.

When did you first consider buying the item?

Impulse buying can wreak havoc on your finances if left unchecked. Therefore, it’s essential to ask yourself when you first considered making a purchase.

While there’s nothing wrong with treating yourself occasionally, splurging should not be an excuse for impulsive or reckless spending.

If you’ve been contemplating a purchase for weeks or even months, now might be a good time to buy it.

However, if the idea of buying something only recently crossed your mind, it’s wise to hit the pause button and give yourself time to determine whether your desire to purchase it is genuine or a fleeting impulse.

Related: How to Splurge the Right Way (without going broke). 

Do you have money (in your bank account) to pay for it…today?

Another crucial factor in deciding whether to make a purchase is your ability to pay for it immediately. So it’s important to consider how you plan to cover the cost.

Even if you intend to use a credit card for the reward points, you should have funds readily available to pay off the balance in full.

Relying on future income or accumulating credit card debt can lead to financial trouble down the road. Therefore, never spend money you don’t have. If you don’t have cash for a purchase today, wait and save it for it. Your wallet will thank you. 

Have you checked your inventory for similar items?

Before making a purchase, take a moment to assess whether you already own similar items.

Many people have found themselves buying duplicate items due to a lack of inventory management; and impulse purchases are often made when a person doesn’t consider what they already have at home.

So if you’re in a store and you’re about to make an impulsive purchase, resist the urge until you’ve checked your belongings.

This practice offers two benefits. First, it saves money by preventing unnecessary purchases. And secondly, once you leave the store and the moment passes, the desire for the item will likely weaken.

How will the purchase affect your finances?

At the end of the day, you should never make a purchase that’s going to have a negative effect on your finances, even if it’s only a minor effect. Buying an item should not interfere with your ability to pay a bill on time, it should not result in long-term credit card debt, and it should not limit your ability to save money.

The last part really applies to larger purchases. Just because you have money to afford the monthly payment on something, maybe a new car, doesn’t mean that you can afford it. Especially if the monthly payment will prevent building an emergency fund, saving for retirement, or even being able to have more experiences.

Is now a good time to buy it?

Timing also plays a crucial role in deciding whether it’s the right time to buy something, and certain periods of the year are more favorable for purchasing specific items.

For instance, if you’re in the market for a new TV or considering upgrading your surround sound system, you’ll often find excellent deals (aside from Black Friday sales) right before the Super Bowl.

Moreover, January is known as a prime time to invest in fitness equipment, while March has good offers on grills. So, if you have a particular item in mind and you’re not in a hurry to make the purchase, conducting a bit of research to pinpoint the optimal buying window can lead to substantial savings.

Is there a return policy?

Even if you consider the above tips and decide to buy an item, you might still have some reservations.

Maybe you’re someone who deals with money guilt. So even when you’re being responsible, you might go back-and-forth and feel weird about a purchase.

This isn’t something you can overcome by snapping your fingers. However, it might help to only buy items that you can return. That way, if you’re still feeling guilty a week or two later, you can return the item and get your money back.

Now that you have these tips, we’d love to hear from you: How do you decide if a purchase is truly worth it?