1. Why do I need this? What will it do for me?
Money guru Dave Ramsey says any purchase, especially a big purchase, should be something you use, not store.
2. Why do I want to buy this?
Even if you can legitimately afford it, are you buying something because it is popular or fancy; you saw it on social media; or your neighbor has this? If so, this is a red flag, especially if you have to finance the purchase.
3. Can I afford to pay cash?
Some purchases, such as a car or house, may have to be financed, but most purchases should be made in cash. If you can't part with the cash now, consider waiting until you can.
4. Is this the best deal or option available?
You might save some money if you do a little comparison shopping.
5. Is this the best time to make this purchase?
If you need new sheets today, you probably should just do some comparison shopping. But if you want a special set of sheets with a steeper-than-average price tag, consider holding that purchase until January, when most white sales are held.