First and foremost, determine if your prospective purchase fullfills or is simply something you want. If it fills a need, continue with the purchase (provided you can afford it). But if it’s just something you want, ask yourself the following questions.

Beyond the price tag, what will making this purchase cost you? Will it keep you from paying a bill or putting money away for savings? Can you pay cash or would you have to use a credit card? If you use credit, could you pay it off in the next month, or would it begin to accrue interest? When you stop and think about the true cost, there’s a good chance you’ll decide it’s not worth it.

What are you hoping to gain from making the purchase? Are you looking for status or approval from others? Do you want it because someone you know has it? Or perhaps it’s something that will genuinely improve your quality of life. When you stop to think about the ‘why’ behind your purchasing decisions, you will start choosing more carefully.