Free Template
Decision framework for evaluating large purchases like cars or tech.
Purchase Item: [Item Name] Cost: $ Checklist Questions: [ ] Do I have the cash to buy this today without touching my emergency fund? [ ] Have I waited 30 days since first wanting this? (Avoid impulse) [ ] How many hours of work does this item cost? (Cost / Hourly Rate) [ ] Is there a recurring cost (subscription, maintenance, fuel)? [ ] Will this item provide value or joy in 1 year's time? [ ] Can I find a high-quality used version for less? [ ] Does this align with my current financial goals? Decision: - [ ] Yes (Proceed) - [ ] No (Save more or reconsider) - [ ] Wait (Set a new date for review)
Use this for any non-essential purchase over $100 (or your chosen threshold).
Calculate the 'cost in hours'—this often provides the best perspective.
Be honest about the '30-day rule'—most impulse buys lose their appeal within a month.
Consider the opportunity cost: What else could that money do for you (e.g., investing)?
Focus on 'Price per Use': A $500 item you use every day costs less per use than a $50 item you use once.
Quality over Quantity: Sometimes spending more upfront on a durable item saves money in the long run.
Check your 'Wants' budget: Does this purchase fit within your monthly allocation?
Continue your journey with these related resources.