Every time you plan to buy a luxury product, stop! Take some time out and re-consider your decision.
We all have dreams and most of us work hard to fulfill them. Our dreams are mostly fuelled by brilliant advertising and alluring marketing efforts by aspirational brands. While some of these must-haves come dirt cheap, there are a few others that cost a lot more than our means.
Now, if you listen to what elders say, then it would be better to save your hard earned money for a rainy day. But this would mean that you let go of your wishes like burying the latest smartphone or the compelling voice-controlled assistant device, you've wanted to get your hands on. While it is okay to splurge and get something luxurious once in a while, make sure that it is indeed worth the money spent.
So, each time you plan to buy a luxury product so that you are not behind from your peers or just to be the center of attraction, stop. Take some time out and re-consider your decision.
Here are a few points that you should contemplate before making that big splurge.
1. The need
Do you really need the product - This should be the starting point. Think of the real reason why you are buying it. Is it because you are passionate about it? Is it because it would make your life much easier? Or, is it a long cherished dream? If it is one of the above reasons, then you can consider going the lengths. However, if it is simply a status symbol, the sheen of the product will die before you even realise it and there will be another new product crying for attention.
Now, consider if you can save the money to buy something worthwhile later?
2. The money
Luxury products can burn a hole in your pocket as well as your savings. Ask yourself two questions - how much money do you have? Is it enough to buy that product?
Of course, you have an option to buy luxury items in monthly installments, but does it mean you will have to pay a small chunk of your earnings towards it.
So, before you jump your guns and take the big step, spare some thought for your finances. If you feel that you can afford the product without landing in a financial quandary, then you can go ahead and make the splurge.
3. The necessity
A need is one thing and entirely different from necessity. Consider how vital this luxury product is in your life. Will it change the course of your life? Is it not possible to go forth in your life without this product? Is it really a make or break situation? Is it something that you need urgently? In case you answer in the affirmative, then it may be worthwhile to buy the product. However, luxury products are usually not a necessity which is why they are named so. Thus, think before you splurge.
4. The trend
Most luxury items are simply a trend that changes in a matter of time when a newer version of your product is made available. Moreover, as a modern versions hit the market, the previous version diminishes in value. Do you really want to be a part of this rat race where you may end up paying a huge sum for something that would come down to a lower price in the next few months? This is something you should consider since you are breaking the bank to buy the product.
5. The alternative
Considering the popularity of luxury products, numerous companies are now offering the same features for a lower cost minus the brand name. Take some time to think as to whether you are buying the luxury item just for the brand or for the features that it offers.
In case, you are all out for the brand name then you can make the big purchase. However, if you are hooked to the features and the efficiency of the product, then it would be wise to opt for a cheaper version. You would not only get value for money, but will prevent yourself from an unnecessary splurge.
6. The waiting
Being an early adopter doesn’t always pay well.
Now, irrespective of what luxury item you might have set your eyes on, chances are that sooner or later the company will offer a deal on the product. This usually happens around festivals. Most often than not, these deals are great and worth the wait.
Think if you can wait for some time to buy your dream product. This way you will get a great deal and may get some free accessories as well. Further, as the product costs seem to reduce with each passing day, a wait can help you get the product at a lower price than what it is today.
Breaking your savings is easy and requires a few minutes. But rebuilding it is not that simple. So, before you splurge, take some time out and think about the big decision. Reflect on all the angles and splurge only if you are totally convinced.The writer is Co-Founder Director & CEO at Antworks Money.