Introduction
I do not like purchasing things. However, I do have to do some shopping to meet my requirements. I always like to plan ahead and try to buy only what I have already decided rather than getting swayed away by catchy advertisements. By the way, I love creative advertisements!
Just like with any kind of decision-making, WH questions come to the rescue. Here’s how I use them for shopping.
Step 1: Ask WHAT do I need or want
You know what you need based on what you have to do. If you have to eat, you need food. If you have to sketch, you need a paper and a pencil.
I usually like to keep an updated list of all the items I need or want.
Step 2: Ask WHY do I need or want it
You usually get the answer to WHY if you start with WHAT. You need food to eat. You need a paper and a pencil to sketch.
However, if you do not start with WHAT and you see that nice banner luring you for a big discount on that luxurious item, you need to ask WHY you would want that. I am not against luxury. But, if you can not answer WHY you would want it, chances are that you might regret it once your dopamine levels settle down if you had no good reason for that purchase and could have channeled your precious energy, time and money towards something more important.
Step 3: Ask how much do I need or want it
This is not a typical WH question, but it turns out to be very helpful for prioritization. If you desire more things than you can afford, assigning a priority value to each of your WHAT list items will help in getting the most important item first. An alternative question to this is “Will my current purchase lead me to let go of a more important item?”
If you use a bike for your daily commute and want a car only for your weekend outings, then instead of purchasing that car, investing the money in a better asset will significantly improve your financial health.
Step 4: Ask WHEN do I need or want it
Timing is important. Product prices fluctuate based on various factors like demand-supply or change in tax rates. Your affordability may also improve if your income increases. If you want an item that can wait and its price is predicted to fall, then wait for its price to fall. If you need an item in the near future whose price is predicted to rise more than the rise in your income, then better to buy it now.
If you want to upgrade your smartphone to get all the latest hyped features, wait for its prices to come down.
Step 5: Ask WHERE do I get the best deal
The lowest price may not always offer the best deal. If a vegetable costs more in your nearby market than a market far away, then it is wiser to buy it from the nearby market if the cost of the commute added to the vegetable price in the market far away is more. Coming to online shopping, take extra care to stay away from fraudulent websites offering lower prices.
Conclusion
It is not practical to fully get rid of unplanned purchases. If you happen to be around a very popular tourism hub, you might want to buy a souvenir whose only purpose is to remind you of your good memories. Having the right answers to the above questions helps in justifying your unplanned purchases any time you question those later.