As per the studies, there is a significant shift in the buying patterns of the consumers. There are also considerable variations in the prices of the same products on different platforms. It is always recommended to compare prices on the same items on all available platforms before making a purchase. But you should think twice before making a big purchase.
Things to Ask Yourself before Investing in Luxurious Purchases
It is advisable to ask the seven questions mentioned below to ourselves before making a huge purchase:
Can I afford it?
At times it becomes necessary to check our affordability before opting for a luxury item. You can define your budget before deciding the product. It is even advisable to compare the benefits of the product with its mentioned cost and determine if it’s worth the buy.
Can I make a payment from my savings?
It is necessary to have some surplus fund for making big purchases. In case your bank account doesn’t reflect that much savings, it is not advisable to purchase on loans and pay high premiums. Rethink, if you can wait for a few months. If yes, then save for it and go for the purchase.
Do I need it?
Before buying it is advisable to search for the benefits and uses of that item, if it matches your needs then you can either wait until the price drops or look for the best deals. If you feel it doesn’t serve your purpose, you can avoid buying it immediately.
Can the Purchase be postponed?
There are some items of daily use or semi-luxury which we need immediately, but there are some items that can be postponed. For example, if you are using a Titan watch, you can wait for Rolex. This may not be your immediate need. It is advisable to analyze your needs keeping in mind your budget and rethink if this can be postponed for the time being.
Can I rent the same?
If you can rent the same thing, it is advisable to do so instead of making a new purchase and spending all your money on a single item. You can try to use it for a few months, and if things suit you, you can make the final purchase.
Measure the opportunity cost
It is advisable to check the opportunity cost of that item. You should analyze like what other things can be done or bought with the same amount of money.
Calculate the depreciation value
It is advisable to check the depreciation cost of the item over the years as well as check if it is worth the buy in the mentioned cost.
How Can Bajaj Finserv Protect You From Paying High?
For all your big purchases, Bajaj Finserv has come up with a Price Protection Insurance Policy under its Pocket Insurance Scheme. Following is the premium amount for the insurance and condition for claiming money:
- It covers up to Rs.75, 000 by paying a premium amount of Rs.399 per annum.
- Allows you to claim your refund in case of price fluctuation
Exclusion under the Policy:
- The item with an original purchase price of less than Rs.2500
- Antiques and art forms that are not covered under the policy.
- Any perishable item is not covered
- Living things like plants and animals
- Pharmaceutical and medical products
- Items made of gold or any other precious metals
Author Bio –
Bella is a blogger and she passionate about writing on different topics like Insurance, Tech, Automotive, Finance and many others. She has been creating SEO friendly content for more than 5 years. You can also know about life insurance policy.