So, you’re about to make a huge financial decision, but something just feels wrong about the whole ordeal. Well, it could be a hint that you’re about to make a horrible, terrible, illogical and dangerous financial decision. Right now, you’re deciding if you should proceed or take a step back.
Whether it’s buying a home or purchasing an expensive dress, we all have to make monetary choices each day of our lives. Oftentimes, when we buy stuff, we feel fine, but other times we feel dirty, gross and stupid. It’s important that when you feel the ladder that you should reverse course and refrain from acquiring a non-essential item.
See also: Can Money Ever Equal Happiness?
There are many signs that you’re on the cusp of going through with something you shouldn’t. We try to turn a blind eye to these signals because we really want it and feel as if it’ll make us happier. It’s just wishful thinking.
Here are six signs that you’re on the verge of making a terrible money choice:
#1 Advice From Others
You’ve either asked for or you’ve been given advice from someone who isn’t a professional or even good with money. If this is the case then it’s quite plausible that you’re going to be putting a financial blemish on your bank accounts. When you’re buying something immense, seek the advice of financial gurus or money professionals.
#2 Biding Your Time
Financial experts say that when you really want to buy something then wait between 24 and 48 hours. This prevents impulse buys and waste. If you don’t do this then you could regret the purchase and then be too lazy to return the item in question. Play the waiting game next time you wish to buy something.
#3 Performing Research
In addition to not biding your time, you haven’t done any research on competing prices, customer reviews and history of the company selling the product or service. One of the best ways to determine if this is a sound investment of your money is to perform your due diligence and seek the recommendations of other customers.
#4 No Real Reasons
Are you buying this expensive product because you just want to? Or are you doing it out of habit? Let’s face it: if you have no real reason to hand over your hard earned money for something then it’s not a need at all. Put your money away and head in the opposite direction.
#5 Don’t Have the Money
You live paycheck to paycheck, you have zero money in your emergency rainy day fund and you have too much consumer debt. What are you doing even thinking about wasting your money on stuff you don’t need? Here’s one simple rule: if you don’t have the money then you can’t have it.
#6 The Little Man
Similar to Edward G. Robinson in "Double Indemnity," we all have a little man inside of us, who places knots in our chest. This little man is active every single day. If you’re at the checkout counter or on your PayPal account and that little man is giving you heartburn, then it’s a sure sign that you’re about to make a colossal financial mistake.
It’s easy to spend money, and we usually try to justify our spending behaviors (weather, deserving, happiness). However, a lot of our money problems are related to our deplorable financial habits. If you’re spending beyond your means, then it’s quite possible that most of the stuff you buy and own are not needed.
Here’s an interesting poll from Canada: one-third of Canadians dip into their long-term savings account to buy expensive cars, go on vacations and perform home renovations. Is this wise?