“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” —Will Rogers
The average American home size has doubled in the past 50 years. Still nearly 20% of households rent offsite storage and 25% of homeowners with two-car garages can’t park cars in them. 60% of Americans live paycheck-to-paycheck. And the average U.S. household with credit card debt has a balance of around $6,065.
It appears we have a spending problem. We buy far more than we need.
And yet, our filled closets, overflowing drawers, and crammed basements stand as proof that purchases are not improving our lives. Our discontent is evidenced in our excess.
In every imaginable category (from homes and cars to clothing and technology), we must find greater intentionality in our consumer pursuits.
To accomplish this, I propose we start asking ourselves some very specific questions before making any purchase.
3 Questions to Ask Before Any Purchase (by category)
Clothing/Apparel:
1. Am I replacing an item of clothing or buying something new? If the item is not a specific replacement, rethink your need for it.
2. Is this something I will wear regularly? If you can’t see yourself wearing the item on a regular basis, rethink the purchase.
3. Is the style one that will last? Don’t believe all the hype of the latest trends, they are manufactured by the fashion industry and change quickly.
Technology:
1. What problem does this solve? Technology should make our lives easier by solving problems. If a new technology is not solving an existing problem, it is only adding to them.
2. Are there any rumors of new advancements to this technology? Technology is changing rapidly. If your purchase is not time sensitive, it may be wise to double-check if a new release is right around the corner.
3. Is this technology I can afford? Keep in mind the full cost is often far greater than the initial investment.
Furniture/Decor:
1. Is my purchase based on a genuine need or a cultural pressure? Am I succumbing to a specific pressure brought on by cultural, peer, or family pressure? Or is the furniture/decor something I truly need?
2. Am I choosing quality over quantity? With furniture, choose quality over quantity. One comfortable place to sit is far better than three uncomfortable options. And one beautiful piece of art decor will provide more life than a dozen cheap ones.
3. Is this style one that will last?
Entertainment:
1. Will this entertainment choice result in rest and value? Entertainment moves our emotion, occupies our heart, and exercises our mind. Or at least, it should. Choose to invest your entertainment dollars in places that will.
2. Am I overusing entertainment to escape my life? There is nothing wrong with enjoying entertainment. It serves an important purpose. However, it can become a personal and financial burden if we use it as a means to routinely escape our own reality rather than face it.
3. Is there a cheaper alternative? A walk in the park or a hike up a mountain is often more entertaining and beneficial than buying another movie ticket.
Food:
1. Will this food add fuel to my life? Unhealthy foods may taste better in the moment, but in the long-run, they detract from our well-being and lifestyle.
2. Are my food decisions contributing to my financial stress? According to statistics, Americans spend 42% of their total food bill eating out. If you are unable to get ahead financially, this is one easy place to start cutting back.
3. Who am I supporting with this purchase? You need to eat. Support your local economy while you do.
Personal Insurance/Health:
1. If purchased personally, have I discussed my options with a health insurance professional? Find professional help with this decision. It is their job to understand all your options (and they are changing quickly).
2. Have I researched the benefits of my existing plan? Am I getting the absolute most out of my current payments? Search dental, vision, and preventive care.
3. Am I pursuing a health-benefiting lifestyle? The most effective way to keep your health care costs at a minimum is to pursue a healthy lifestyle. Accidents and heritage happen, but healthy habits always pay for themselves in the long run.
Transportation:
1. Do I need a new vehicle? If not, why do I want a new vehicle? And is that a good enough reason to spend the resources?
2. How much cash + trade-in have I saved? Always, always buy your vehicles with cash. You won’t regret it.
3. What are the additional expenses associated with this purchase? Calculate insurance, gasoline, anticipated maintenance, and unique circumstances (parking, tolls). Factor these into your decision by comparing several models. Sometimes a vehicle may cost more upfront, but save money in the long run.
Housing:
1. Am I buying/renting only what I need? Choose shelter based on your needs, not what the realtor says you can afford.
2. What will be the additional expenses included in this purchase? Whenever possible, research the utility costs, insurance, taxes, expected maintenance, and HOA fees of your new purchase—especially if you are transitioning from a rental.
3. Will this arrangement bring freedom or burden into my life? Your home should bring you security and stability—not stress. Wisely consider also the impact of potential economic downturns on your home value and ability to make future payments.
Pets:
1. Is this a pet I can afford? Consider all costs associated with your pet: feeding, licensing, housing, cleaning, grooming, pet-sitters, and medical expenses.
2. “Will this animal or pet keep me from pursuing other important goals like travel, hosting others in my home, or financial independence?”
3. Will the benefits an animal brings to my life outweigh the extra work and expenses? Am I able to articulate the exact reason why I am taking on this responsibility?
I am very open to this being a fluid list. Are there any spending categories you would like me to add? Or do you have any specific questions for the categories above you have found particularly helpful? Let us know in the comment section below.
I think a good category would be purchasing exercise equipment. How many people actually us what they buy. Had an old boyfriend buy me a stairmaster as a gift. It made a good clothes drying rack. He never used it either. Later donated to Goodwill.
Good read , except it’s almost impossible to pay for a car cash these days, they have blown up prices !
If you finance a car, you are paying more for it than if you wait and save up to pay cash. If you can’t afford new, buy used or smaller or less luxury. A car is a tool, not a reason to go into debt. In 54 years of marriage we always paid cash for everything except our first house.
That’s awesome and inspiring.
I pay cash for almost every thing, unless I can get it cheaper if I use a store card or rack up some points to use later. If they let me, I charge it then pay my bill. I will charge things on a vacation, I do not want to carry too much cash with me. I have been on this site for over a year now and have very much cut back on my buying. Thank You?♀️
While I love my home and don’t plan to move now, I am now asking myself both before purchasing anything new or when decluttering, if I were to move to an apartment would there be room for it? And would I want to pay to move it? The answers have helped me a lot.
Love this comment so much!!!
I also ask, “Where will it live when I bring it home?”
Great article! Thanks!
Interesting and thought-provoking. Our animals are part of our family, but even so, we made the decision some years ago not to replace our pets as they died off until we got down to one cat and one dog, and I feel that we will, eventually be down to one dog. Since we’re used to 1-2 dogs and up to 8 cats, that’s quite a change, but having fewer animals does simplify life, especially holidays.
This is so practical – thank you. Any specifics on purchases for kids would be so helpful, too. That is one of our most difficult purchase decision categories.
Category: Running for fitness
Do I need that “special” running outfit? That jogging watch, ipod, bluetooth earbuds, expensive running shoes? Just run, enjoy nature if running in the country, and stay mindful if running in the city. However, good footwear is always recommended.
Nice but not necessary, some of the time. I cycle and I’m glad I made the investment in good tights, shorts, etc, but lots of things do duty on my top half that were never designed for cycling.
Haha I like how you put this running “for fitness” and care for the traffic in the city when running.
We purchased our home over 15 years ago with hopes of completing many necessary improvements by this time in our life. My spouse is 63 and I will be 63 in August. Many large, expensive projects are still left undone and it doesn’t seem we are either one terribly interested in the “home projects” having completed many over the years in other homes. I hope to “retire” from my 8-5 in a couple of years, an he, a few years following. I wonder if maybe selling and renting might be a practical option. would love advise you might have on this subject. It seems the home would provide the hedge against inflation, but it seems like a burden we neither one want.
Good points, but this list is certainly not minimalist! How about…is it
1. necessary?
2. nice to have?
3. a burden?
Buy the 1’s, a few 2’s but no 3’s.
Perfect. Easy to remember too! Thank you!
Great questions. Invites me go deeper with my choices. I highly recommend Joshua’s online Uncluttering course.
I like to ask what is the time cost? To use, maintain this? Do I have time for what I already own? For housing location, I compare time and cost spent commuting. This one choice can put more family time in my day while saving money.
I have developed one simple question to ask myself on everything. That is, ‘What happens if I don’t buy it’? Normally the answer is ‘very little is affected’ and then I don’t purchase. If the answer is more serious, then I will consider again.
Yes! I love this one.
Excellent
Thanks for adding this one. Very helpful.
How about gifts for others? Often we have good intentions (especially grandparents) but we buy more clutter for our children’s homes. Think about how the gift will add value to the lives of our loved ones. I would rather provide long lasting memories through experiences with my grandchildren than buy more toys that will be soon forgotten,
My gifts to my grandsons are my time. I take them out on their birthdays, anywhere they want to eat, anything they want to do. Memories are more precious and lasting than things.
Good thinking. Especially if gifting to someone who is overly sentimental, like myself. I have a difficult time getting rid of gifts given by loved ones…
Thank you for your kindness & generosity! You are positively affecting others! Bless you! ?
What about continuing education and/or job related (or unrelated) certifications, courses, training, etc?
I enjoyed it, it made me think. I have lots of stuff because I only asked myself one question: “Do I really want this?”
Read the ebook for free from the local library after waiting in a long hold line. Blog and fb are free. Paid $2.99 for a sale copy of the audio book. Joshua Becker deserves to earn an honest living, writing and speaking, seems like he practices what he shares. He is providing a wonderful blessing to many who choose it. I thank him.