Why It Doesn’t Pay To Buy Impulsively

With all the buzz and media coverage new technologies get these days, it’s easy to get caught up in the hype. Things like the iphone have been plastered across every media outlet there is, but that doesn’t mean you need to go out and grab the latest Apple gadget! Instead, there are some things you should take into account:

• Need or Want? Some people try to rationalize a large purchase by coming up with scenarios where they could use the device in question. “What if I get lost and need to be somewhere? If I had an Iphone, I’d be able to get where I needed to be no problem thanks to the navigation features!” Try to get away from this thinking and go through the product’s uses and features beforehand. If the benefits justifies the cost, don’t go out and buy it right away. Make sure you have the money on-hand to pay for your purchase.
• Understand the Risks: Hybrid cars are a great example of this. When the Prius first came out, tons of people bought them in hopes of saving money on gas and helping the environment. However, as the technology has progressed, the Prius models have seen vast improvements in efficiency and battery life/power as well. Don’t buy on the bleeding edge, wait until the technology is proven.
• Waiting Saves Your Money: If you bought the Iphone as soon as it first came out, waiting in line with the other crazy tech-guys who had to have the latest gadget on opening day, were you mad when Apple cut it’s price on the iphone recently? The longer a technology is out, the cheaper it will get. If you take the time to save up for a purchase over time, there’s a chance it could be cheaper by the time you are ready to buy it!

Finally, if there are 2 competing technologies that are going for an all-or-none approach, wait to see who wins. HD-DVD is officially a dead format now, and Blue-ray is now the dominant format for next-generation dvds. Hopefully, you didn’t buy one, regular dvds work just fine for me.