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How to Avoid Big Purchases and Deal with Emergencies

  November 28

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avoid big purchasesI hope everyone is having a great Thanksgiving! I’m always thankful to my fellow bloggers for taking the time to share their knowledge here at Budget Blonde.

Today we welcome my UK friend Joe as a guest to the blog! Enjoy. 🙂

We finance bloggers love to get frugal, whether it means using a teabag four times, buying reusable diapers, or using rechargeable batteries. The reality, though, is that the purchases that cause the most damage to our financial goals are the big ones.

Emergencies

The threats to our finances come in the moments where an unexpected emergency occurs and you have to make a big decision under pressure. Moments like these will make or break us, for example:

  • You’ve found the perfect home but the seller’s lowest price  is $10,000 above your ideal offer
  • Your car breaks down and you’ll pay the mechanic anything to fix it ASAP so that you can get to work
  • Your electricity bill is automatically deducted from your account before you’ve tried to haggle it down

So how do we deal with these ‘unavoidable’ tragedies?

Refer to your goals; think short term pain and long term pleasure.

Take a deep breath and make the decisions that will benefit you in the long run. Here are some alternative approaches to the above troubles:

  • If you can’t stretch to buy the house without a major struggle then keep looking; there’s bound to be an even more perfect house out there for you!
  • Get a second opinion and consider a cheaper mechanic. I’m sure work will forgive you if you explain the circumstances. If not, make the time up in your lunch breaks!
  • Cancel that direct debit and pay online or over the phone for each bill; you’ll feel much more connected to your payment this way and might even find a way to cut that bill down!

Big Purchases

Marketing is contagious, as is peer pressure. Like a common cold, it’s inevitable that at some point in your life you’ll catch the consumer bug and want buy that big TV or that new car. In the words of the famous Zig Ziglar, “Wait one month before making a major purchase”. In that time you might change your mind about whether or not you need it. While you are waiting, make sure you do your research. In the worst case scenario, you might find a cheaper deal!

Another great practice is to work out your hourly wage. Then work out how many hours, days, and weeks of work it would take you to earn that money back. Is it really worth it?

What are some other ways you try to avoid big purchases?

If you enjoyed this post, pop by Joe’s new blog Budget Breakaway some time and follow him on Twitter @BudgetBreakaway.

Photo Credit: FreeDigitalPhotos.net

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12 responses to “How to Avoid Big Purchases and Deal with Emergencies

  1. Great advice! I especially like the one about avoiding automatic debits from your checking account. Those always make me nervous- I like to have the opportunity to review the bill before the amount gets taken out!

    1. Hi Dee!,
      It’s always good to know exactly what’s coming in and out of your account! Plus there’s nothing worse than having bills come out 3weeks after pay day! Any direct debits that I do have, I try to arrange for the begining of the month 🙂

  2. It’s always good to pause and really think big purchases through. I got totally screwed on the car thing before, but that’s because it was un-drivable. I should have just coughed up the money for a tow to someplace I trusted. Probably would have saved money in the long run.

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