PSA Thursday: To Buy or Not to Buy?

<p>Many people in the personal finance / FIRE community have a complicated relationship with the concept of consumer spending.</p> <p>They may see family, friends and neighbors demonstrate one extreme -- they’re profligate spenders who will buy anything -- and, in an effort to be nothing like them, they may overcompensate by becoming extreme penny-pinchers. (I see this often at the start of a person’s FIRE journey, when the pendulum is swinging sharply in the other direction).</p> <p>The reality is that neither extreme is healthy.</p> <p>There’s a middle ground between being so gullible that you’ll buy anything vs. being so cynical that you build a wall that shuts real value out of your life and hampers your growth.</p> <p>In recognition of that balanced middle path, today’s PSA Thursday episode focuses on five questions that you should ask yourself before making a purchase.</p> <p>#1: Do I have high-interest debt or an inadequate emergency fund?<br /> #2: Is this a purchase or an investment?<br /> #3: How long have I been thinking about this?<br /> #4: Is this only serving an emotional need, or does it also have greater utility?<br /> #5: The five “ity’s” -- longevity, durability, applicability, versatility, utility.</p> <p>We elaborate on these five points in today’s PSA Thursday episode. Enjoy!</p> <p><br /> For more information, visit the show notes at <a href= "https://affordanything.com/psathursday" target="_blank" rel= "noopener">https://affordanything.com/psathursday</a></p>