How to Make an Informed Purchase Decision: Should I buy this or that?
Every day we’re left to choose between two alternatives: a car or a house, rice or pasta.
Do I need this? I can get it cheaper.
Yet every time we make a purchase, we sometimes struggle with whether we made the right choice (cognitive dissonance).
Cognitive dissonance is an uncomfortable feeling for a consumer, and usually leads to the buyer taking her money elsewhere or experiencing remorse over the purchase.
To say that you won't spend money is like saying you don't want to breathe, because people literally pay to do that.
The difference is that they are compelled to because of their situation. Whereas, you have a choice when you want to make a purchase decision.
It's not enough to make a decision—you could actually make a bad debt decision; it's how informed your decision is. In this guide, you'll learn what to do the next time you need to purchase something.
Let’s get into it….
- Think Before You Leap: Before you purchase or invest in anything, think about it. If possible, look at your payment history to see how much you’re spending and if the item is above your budget. Consider your income and your scale of preference to see if it’s a priority or just a want.
- Ask Questions: When presented with a product, service, or asset, do not hesitate to ask questions to clear doubt.
How suitable is it for my needs? Is this the best option?
By doing this, you’re getting information that will help you make your decision.
- Verify: Misinformation can wreck your whole financial literacy journey. Acquiring something with a false description will definitely lead to a loss of money and an unauthentic product.
When you've gotten the information you need, compare it with their website (if they have one), testimonials, or even competitors products if you need to. Don't just give them all your money because they say they are legit.
- Weigh your cost: Now that you've verified your information, estimate your cost.
With how much money you have or are making, will you be able to make the purchase? Do you need to borrow to acquire it?
Also, consider the risk involved. After this process, consider if the product or service is worth it.
- Purchase Decision: Now that you've done your due diligence, this is the most important step. After following the previous step, you have to come to a decision. To buy or not.
This purchasing decision should be free from emotions, persuasion, and guilt (because it’s a friend’s product); rather, it should be informed, timely, and rational.
Many times, the product is not the problem, but making hasty decisions is. If it's a need, do well to solve it. If it's a want, think it through. Don't go buy a car when you really need to further your education.
Now that you have this valuable knowledge, why not share it to inform others? If you found this helpful, give it your 50 claps.
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