When it comes to spending money, we all need a little guidance sometimes so I’ve put together 5 questions to ask before spending! It’s my hope that this series will provide you with practical questions to ask when preparing to spend a substantial amount of money (or any amount of money). Hopefully, these practical questions will help you truly understand the enormity of the decision and help you make the decision that is best for you and your family.
Let’s review questions 1 – 4:
QUESTION 1: Is this a want or a need purchase?
QUESTION 2: Will this item INCREASE or DECREASE in value?
QUESTION 3: Do I have the money to pay CASH for this item?
QUESTION 4: Will this purchase generate or take away income?
QUESTION 5: Will this help me achieve my future plans, hopes, and dreams?
I believe the number one reason that people fail with their financial plan is a lack of organization and lack of a plan. Without a long-term perspective, it becomes extremely easy to fall into the trap of living for the minute and immediately spending everything we earn. As one develops a long-term perspective, it really helps us recognize that spending all of our money right away will rip our future dreams away from us!
When my family first started improving our financial future (December 2002), I noticed that we started looking ahead a few months. Now, twelve years later, my entire perspective has shifted. You see, I want to leave a legacy for my children and community. I want to start a university. I want to leave a huge inheritance to my family, church, and others. My wife and I want to give our children a paid-for-college education. We desire to teach them to manage their finances, recognizing that it’s not just for them but it’s FOR THEM TO HELP OTHERS!
Statistics say that I’m already halfway through my life. Time is short. Too short to spend all of our resources on stuff that does not support our plans, hopes, and dreams.
What are your future plans, hopes and dreams? What purchases will help you achieve these?