LWM

Buyer Beware

Black Friday is just a few days away and some people are already planning their attack on the mall and other retailers to get those once in a lifetime deals. My advice to you… Sleep in, don’t rush out and buy something that you do not need with money that you do not have.

This time of the year retailers will try anything to separate you from your hard earned cash, marketing is at its highest point during the holiday season and people will spend money that they do not have to buy things that they do not need for people who will not appreciate it.

That 60 inch big screen television (on my wish list too) will be on sale someplace and they will more than likely offer to sell it to you for little or no cash down and a same as cash credit plan that makes it sound like an offer that you cannot walk away from. Keep in mind that if you miss one of those payments that contract allows the retailer to usually charge you around 24% interest, now that great deal just ended up costing you a whole lot more than you planned.

There are some general guidelines you should keep in mind when making a major purchase and these rules apply to the holiday season as well as the rest of the year, major purchases are those items that cost you over $300.

Before you purchase one of these major items do the following:

1) Wait overnight, take time to really think about it and see if you feel the same way in the morning.
2) Consider your motives for the purchase; no amount of stuff equals contentment or fulfillment.
3) Never buy anything that you do not understand.
4) Consider the “opportunity costs” of your money.
5) Seek the counsel of your spouse or financial partner.


Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion.