You may be considering making a large purchase in order to save or make money. There are several options that come quickly to my mind: a new freezer, a hybrid car, a new computer or candy vending machines. It is important to weigh these choices carefully before you make your decision. Here are five things to consider when making these choices.
1) One point to consider is how long will it take you to break even with the new purchase. It may take you a year to save the money on food to equal to the cost of the new freezer. It may take you five or six years to realize the savings in gas on a hybrid car.
2) You need to decide if this purchase is a need or a want. These answers will vary for everyone involved, but knowing this can help you make the right decision. You may be able to wait for a good sale if it is a want. If it is a need, how soon do you really need it? Could you wait for a better price?
3) Often things that save you money will require a little bit of effort in order to bring about the desired results. If you are considering purchasing several vending machines, are you willing to put in the extra time to service them? Is the sacrifice of your time worth the effort? Another example is if you are buying a freezer so that you can do freezer cooking. Are you ready to commit to the process?
4) Are there other reasons that you are considering buying this item, besides saving money? One example is a hybrid car. You may be purchasing this because it is better for the environment, not necessarily because you will see a significant amount of savings from it. Do your personal convictions really motivate you to make this purchase?
5) Are you willing to sacrifice in other areas, so that you can afford to make this purchase? It may mean working some overtime or foregoing a vacation. You may need to cut out your eating out for a few months. If you are willing to make these changes, then you are ready to buy the item.
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