By Charlotte Stallings
Each time you have the urge to make a purchase, ask yourself this question, “Do I really need this, or do I just want it?” Only you know if it’s within your means or outside of your means, and only you know if you can afford it. Wants can always be deferred and even some needs can be put off. Asking “can this wait?” is one way to keep talking about how you spend money in your household.
This simple strategy does several things. It:
1) Keeps you focused on your financial goals
2) Creates accountability
3) Forces you to think
A few years ago my husband discovered he had bought more lumber than he needed to repair our fence. I immediately thought we could put the wood to good use by jazzing up our gazebo. (By no means was it a necessary project, but we ran the risk of ruining the wood if it sat outside.)
By this time we had developed a habit of asking ourselves if the purchase we were considering was a need or a want, and what would happen if we waited a specific period of time before making it. (Early in our marriage, we discovered we had confused our wants with our needs. In fact, we jokingly said “We’ve been deep into the ‘wants’ category for a long time.”)
As we considered the gazebo project, we realized we would need more money than our budget allowed, so we looked at our options. Can this wait? What will happen if we don’t wait? We ended up putting the lumber in the garage!
What category are you in these days: want, need, or a little of both? Try this simple six-step plan to wrap your head around this practice:
1. List all of the things you are considering purchasing for the next six to twelve months.
2. Start a conversation with your spouse, a friend, or just yourself to put these purchases in perspective.
3. Label each one “want” or “need.”
4. Write down the dollar amount each purchase will likely cost.
5. Rank in order the wants and needs.
6. Describe your purchase plan; that is, pull money from cash reserves, use next quarter’s bonus, keep saving, and so on.
7. Share your plan with someone close to you and ask them to check on your progress from time to time. Promise to take them out to dinner when you achieve your goals.
Another suggestion is the “can it wait?” test. Here are some guidelines that have worked well for me:
1. Wait at least one week before making a major purchase.
2. Always ask “can I wait?” “What are other options?” “What will happen if I don’t wait?”
3. Use the “if, then” question. “If I make this purchase or spend this money, then __________ will happen.”
Asking these simple questions can help sustain your commitment to budgeting and achieving your financial goals.