3 important conditions to classify your purchases or transactions to get more out of your money.
Many times we have mentioned in talks and conferences that the problem we have is not what we earn, it is what we spend, it is using the money we have wisely. One of the greatest tools we must use to make the most of our budget is smart purchases.
No matter how much we want, we all have to make purchases, acquire goods, buy items, this has several ways of looking at it from the point of view of financial education. We must take into account the following conditions so that we can classify this purchase as intelligent, that is, that it gives us the highest possible return on that transaction, in other words, that this purchase is as cheap as possible, it gives us our money. Many authors call this "wise use of money."
a) Necessity. The first and most important thing is that the purchase we are making must be a real need for us or our family. A purchase that is not motivated by the search for acceptance, selling an image or the compulsive impulse with which we often act when making a purchase. There are times when the purchase is justified but the item we purchased is not, for example, we need some shoes, and I buy them for 300 dollars, when I could buy one for 50 that will probably do the same job for me.
b) Planning. Smart purchases are planned. Hurry and impulsivity are enemies of financial education. We pay a very high price for this. Planning allows us to wait for the big specials, when the item we are going to purchase is at the lowest price. A well-planned purchase, in which the lowest price of the item or item has been waited for, which can result in saving between 10 and 80% of the total price.
c) Counted. Smart purchases are not made by generating debt that requires me to pay interest, they are made in cash. Whenever we pay interest for any type of transaction, in the end we will multiply the price we are paying for that good, from one to several times. That's why we save and plan.
If you need a consultation about finances, Debt Freedom will advise you how to get out of debt, how to make your purchases correctly, improve your credit record, avoid bankruptcy and much more.