We all have those moments when we’re just not sure if we should make a repair or replace an expensive household appliance. A water heater goes on the fritz, our car makes a funny noise, or we realize a tree in our yard needs to be cut down lest it crash the living room during a Netflix binge (this happened to yours truly recently). How can you know when you should make a major purchase or spend money in a precautionary fashion?
Shelling out a large chunk of change for a caught off guard expense can cause us to do one of two things. A) Hide our heads in the sand and make excuses for why we’ll be OK, how we can beat the odds, and avoid spending money at all costs. B) Force us to go overboard and toss mounds of cash at a problem, fixing extras and making minor repairs. Every consumer should have a set of routine questions to ask before deciding whether or not they should go forward with a major purchase.
Is it necessary?
Buying a new car because your mechanic has told you the days of your current vehicle are limited is necessary. Upgrading to a comfier ride because you love the interior or the color no longer matches your purse is not necessary. Be careful. It’s very easy to convince ourselves that we “need” something when it’s really a want. Which leads us to our next question.
What do the wise people in my life say?
More than likely you’ll need to call in an expert opinion and/or get an estimate for the repair or replacement. Be sure you select someone who really knows the field well and ask for options. Recently we had tree removal company who come to evaluate a limb precariously perched over our roof. The owner gave us a couple of options based on our budget and objectives and allowed us to make a choice.
How much can we spend?
The unexpected nature of your expense will definitely throw you and your budget off guard. This is precisely why an emergency fund is so essential as are sinking funds for car and home appliance repair or replacement. Don’t just say yes to the first salesman or repair service. First, take a look at how much you have saved and know what you’re working with.
Should I DIY?
Sit in any waiting room and you’ll be bombarded by cute couples installing backsplashes and making reno look like a walk in the park. If you’re handy, you may be able to navigate the world of DIY. But there’s a high likelihood that DIY should be DI-don’t. In the end, it might be wiser for you to take on an extra shift at work or sell something you own instead of diving into home or auto repair world laden with hidden expenses and “just one more trip” to the local home improvement store.
What’s the long term cost of not buying?
There are so many “what ifs” tucked neatly inside this question that your answer will be speculation. But if you don’t fix that tricky transmission now, you could have a breakdown on the interstate when you need to be at a meeting in 10 minutes or at work – causing you to lose money and still need the repair. Or back to our limb scenario. Sure, it’s expensive to remove it properly but it’s less expensive than replacing our roof – both in actual dollars and the inconvenience factor. Your time is valuable so the dollar-for-dollar estimation needs to take that into account.
These types of financial decisions are difficult for even the savviest of budgeters because of their unpredictable nature. But in the end, you shouldn’t put off to tomorrow what you really know needs done today. Whether it’s scheduling a doctor’s appointment for that nagging cough or scheduling household maintenance, ask yourself the necessary questions and make the call. The peace of mind (and lack of branches in your lap) will be worth its weight in gold.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out The Debt Free Devotional
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