Spending Decisions – Financial Literacy Spending Series

So all week we have been focusing on savings, and to cap off the week I have a post about spending. Know that every time you make a purchase, you are making a spending decision. You have a choice and you decide what to spend your money on.

There are three questions you should use to guide you through the decision making process each time you make a purchase; Utility – is this something I need or something I want? Availability – do I have the money to buy this right now? Affordability – Does this fit into my long-term goals? 

These questions are great guidance and cause you to really stop and think about the decision you are making. When I was younger, I never really thought about spending money and how it affected my future, I just did it. As I have gotten older and the reality of life has set in, I have realized that I need to be more thoughtful about what my actions today will mean for my future.

Here are some tips that might help you make spending decisions:

• If you are shopping, walk around the store with the item in your hand and ask yourself the questions, 9 times out of 10 you will probably find a reason why you don’t have to have it.
• When making a big purchase decision, sleep on it. Think about it and don’t be impulsive.
• Ask for advice from friends and family they might have a perspective you haven’t thought of.
• Really think about the long-term to give you perspective.

Be sure to visit learnkey.com/financiallitmonth for your free Financial Literacy white papers and other resources, and you can also Like Us on Facebook and Follow Us on Twitter for more daily Financial Literacy tips