Sharing Daily Discoveries About Personal Finance And Business Topics

Approach Things With A Budget In Mind or Not

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Some people were telling me that when it comes to buying certain things they either first look at their pool of funds and then decide what to buy or they decide what they want to get first and then try to get the necessary funds to purchase it. One person was telling me how you should always have a budget in mind which will help to prevent you from overspending to save money. The other guy was saying that it was better to decide what you truly want first as that way you are purchasing something based more on the overall value of the product based on your needs which will pay for itself in the long run.

Interesting perspectives I thought. I think for myself it depends on the situation. When it comes to everyday things like say buying something to drink I would tend to approach it in a more dollar conscience way as oppose to say purchasing a large item like a TV where that is more about the overall value. For the most part, I would say that I normally tend to go with the non budget approach as I try to get the best value or quality for my needs as I usually think more long term. Of course, I would say that it needs more discipline to go that way too as you need to differentiate a need versus a want when it comes to certain things.

Comments to Approach Things With A Budget In Mind or Not

  • I approach purchases with a more dollar conscience mentality than a value approach. If I were to purchase a GPS system for my car, I would conduct research into various models and come up with a price figure based on what I could afford and was willing to pay. Then I would conduct my price shopping. Despite whatever value I could receive, I would stick to my price ceiling.

    I don’t believe material products pay for themselves in the long run. Everything breaks down eventually and a better, newer model will come along.

    That is why I prefer stores like Walmart. Their products may not always be the best quality, named brand models, but by definition almost, they will usually fall within my price range.


    MONEY BLUE BOOK 8/29/2007 9:28 am

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