1) Can I do without it?
2) Does it do more than required?
3) Does it cost more than it's worth?
4) Can we do what it does with things we already have?
5) How often will we use it?
6) Where will we store it?
7) Will using it be more work than we're apt to want to do?
8 ) How many ways can we use it?
9) Have we checked with people who own one and with consumer ratings?
10) Would I be smarter to resist and put the money towards another goal?
11) If the item does not satisfy these criteria, can I at least resell it for a decent price?

This list has really helped me keep my ducks in a row and my money in my pocket. Hope it helps some of you too!

Meg

One of the things i do when i'm shopping for something specific is before i even go out i ask how much its worth to me. Is a nice new purse worth $20, $40, $100? Once i decide how much something is worth to me i'm less likely to be swayed by the price tag or the word sale.

We do the exact same thing. I'll say, "You'd look nice in that sweater." And he'll say, for how much? And I'll say, not more than $20. And if its $25, we walk away. Its easier to set your own price BEFORE you can be swayed by a salesperson, or a Clearance tag, etc.

Girls love sales... I'm easily attracted to things that are on sale, especially if it has a name...However, since I had my baby i really had to set aside the things i love to buy... She's really an angel she saved me from being a scattergood!!! LOLs Every now and then I really need to make sure that I should only buy family needs ... Thanks for the tips!!!

Most of the time I just try to figure if it's a liability or an asset.

asset=anything that gives you money
liability = anything that takes away money

I think I'd be a machine if i really stuck to that to everything, but then I only think of this when I want to buy something expensive. Like a car or a new TV. So far I don't have either, but then I have really good internet and (what I believe to be) a high-end desktop because they can potentially make me money and provide a lot of entertainment.

Thanks.. Before i buy something that is out of budget i'll think twice and remember your questions.

Great tips,

If I can just add another.

Can I afford it.

After asking all your questions and then deciding yes, I'll buy it. The question now becomes, can I afford it now, or should I start saving for it to avoid using credit?

Thanks again for the great info, if people lived this way and weren't so subject to advertizers, then I think there'd be fewer money problems.

Here's an idea - Food For Thought
Advertizers and retailers sell things FULL TIME
We, as shoppers are only PART TIME
Is it any wonder why they are so good at making us buy things we had no intention of buying, that we'll never use and that we can absolutely do without.

I think a #12 on the list could be:

Is there another item that will cover both the functionality of this item an another item I am thinking of purchasing.

A quick example (and I am in no way endorsing Apple, it's just the first thing that came to mind because of a recent product release) is that instead of buying a large capacity iPod and also a Flip Video camera, just get an iPod Nano that now has a camera built in. If the quality of the combined product is good enough for you, you may have just saved quite a bit.

I like the above. I'd just add "Can I sleep on it?" Meaning, do you have time to weigh your options and select the product that is the best value for you? Do you have time to see if you even need/want this? It helps me evaluate the sales pitch, too - if I'm told "It might not be here tomorrow!" then if I can, I'll just walk away.

I have another thing to add too.

It's "How long can the item be used?"

In my opinion, the lifespan of the item is quite important. For example, if I want to buy a food processor and I frequently cook, it is important to get the best quality item I can (within budget, of course). Though there may be lesser expensive alternatives, I would much rather go with the one that I know will last a long time.

Please have a look at my blog and check out articles about budgeting and personal finance.

__________________
Adam Randall

http://www.fifteenyearplan.com - My personal finance blog dedicated to helping people take control of their finances.

I agree that affordability of the item is one big thing! Unless you have the capability to afford it, you should better keep away from it. Moreover, you shouldn’t invest in an item using borrowed money. It will just increase your debt load!