Questions to ask yourself to assure a wise purchase.
Money solves everything, right? If we simply made more money, then we'd pay our bills on time, be able to afford the things we need and want, and have enough for retirement.
YOU'RE CONVINCED
You really need the new iPhone. Or maybe you just know that a giant screen TV will transform your weekends. So you swipe your card and the dream item becomes yours. You're thrilled! That is, until a few weeks later when the credit card bill comes and buyer's remorse hits. You can't help wondering: Was it really worth the price? Avoid getting sucked in again. Before you say "yes" to a large purchase, ask yourself these questions:
IS IT REALLY A GOOD DEAL?
That 50% off sticker seems like an awesome deal, but do the math. Buying it with a credit card could mean you'll be hiking up the price once interest is tacked on. If you plan to pay it off over time, do the math before you purchase at onenevada.org/calculators. Try the Loan Payoff calculator and play around with different balances and interests.
IS THIS THE BEST PRICE?
When making a large purchase, it's important to comparison-shop. Try comparing prices online at Google Shopping, NexTag or Bizrate, and compare some brick-and-mortar shops as well. Visit coupon sites like CouponCabin.com for automatic savings. Also, wait for a sale if it makes sense to do so. Finally, consider purchasing a previously owned item for less.
HOW MANY HOURS WILL YOU NEED TO WORK TO PAY FOR THIS PURCHASE?
Calculate the total number of hours you'll need to work to pay for this "must-have" item. Is it really worth the price?
HOW COULD YOU USE THIS MONEY?
What else can that money buy? A few weeks worth of groceries? A year's worth of monthly dinners out? Take some time to think of smarter ways you can spend this money before making a final decision.
HAVE YOU SPLURGED RECENTLY?
If you can afford it, there's nothing wrong with an occasional pricey indulgence. But, when luxury purchases become a habit, it can spell disaster for your finances. Ask yourself what we teach our kids, "Is it a need or a want?" Can you donate an older item in place of the new one? If not, then maybe you don't really "need" to purchase new.
HOW OFTEN WILL YOU USE THIS ITEM?
Yes, the purchase seems essential today, but looking ahead, how often do you think you'll really use this item? If it's something you'll use a few times a year, you may want to re-think your decision.
HOW MUCH WILL YOUR MONEY GROW IF YOU PUT IT INTO SAVINGS?
You have the funds for this purchase, but how much would that money earn if you saved it? Check out OneNevada.org/SavingsCalculator to get that magic number. The results might leave you pleasantly surprised. One Nevada has several long-term savings options that can help your money grow. Give us a call or stop by, and we'll help you choose one that's perfect for you!
Follow us on Twitter and Like us on Facebook to stay in touch and for the latest updates!
At One Nevada Credit Union, we offer vehicle loan terms of up to 75 months (5 years). You won’t make any payments for the first 90 days when you finance directly with us. Start your online application today.