Sense & Centsibility Blog
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Making a large purchase? [Eight things to consider]

At some point in our lives, making a large purchase might be necessary. And if you’re a homeowner, that might happen fairly often. From buying a car to replacing appliances, these large purchases can seem daunting…and expensive. So, if you’re considering making a major purchase, here are eight things to think about before you spend all that money.

1) Do you have cash on hand, or will you take out debt to buy it?

Unless it’s an absolute need, I suggest holding off and saving up. Because if you take out debt to buy something, that means you’ll have another monthly payment for quite a while. Can you afford another or increased monthly payment? 

2) Is it a need or want?

This one is quite simple. If it's a large purchase and you don't really need it, don't buy it. As indicated above, it’s best to save up for it if it’s not an urgent need.

3) Can you wait to purchase it?

Buying something substantial can give you instant gratification. But that's also why buyer's remorse exists. The next day, you might regret making that large purchase and be stressed thinking about how you’re going to pay for it after the fact if you used credit. Therefore, it’s best to wait at least 48 hours and think about it. You might find that the excitement has worn off, and you just saved yourself a lot of money and regret.

4) How often will you use the item?

Even though I don't use my treadmill anymore, it helped me train for a half marathon and stay active. I paid for it in full, so I never accrued debt and I got my money's worth. I’ve since sold it because I no longer use it. So, be sure to think about its longevity.

5) Do you have room for this large purchase?

If you're thinking of buying a physically large item – even a replacement couch or appliance – it's important to make sure there's a spot for it and that it will fit. Be sure to take measurements and compare the size of the item. If it’s just too big, think smaller to save space and cash.

6) Is there a more affordable and/or used option?

Do you need a brand new item, or could you buy something gently used? Used items can end up saving you a lot of money. Regardless, if you’re buying used or new, be sure to compare prices from at least two or three places. For used items, check out organizations such as Goodwill, Salvation Army, or other thrift stores and consignment-type shops.

7) What is the item's return policy?

Here's where buyer's remorse can come into play. If you didn't wait and are second guessing your purchase a week later, are you still able to return it? Because it can vary quite a bit from place to place, check on the return policy so that you're not stuck with something you don't really want and/or need.

8) How else can or should I spend this money?

This question could easily be first or last in this list. If the item costs hundreds or even thousands of dollars, could you put that money to better use? Unless it's truly a need, there might be better ways to use that money. Saving is the first thing that comes to mind. If you have little to no money in emergency savings, I'd encourage you to make savings your number one priority. Then think about a large purchase down the road a bit.

Always remember to prioritize your money and spend it where it's NEEDED first and foremost.

We are here to assist

If you'd like to take back control of your spending so you can more easily save for a goal, LSS Financial Counseling can help. Call us at 888.577.2227 to schedule a free financial counseling appointment with us, or get started by creating a financial profile online.

Our financial counselors will create a realistic budgeting and spending action plan with you to help you achieve your financial goals. They can also work with you on finding solutions to managing and even eliminating your debt.

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Author Elaina Johannessen is program director for Debt Management Plan operations with LSS Financial Counseling.