Buying Decisions

Filed in archive Loans & Financing on April 2, 2008

Do you have trouble spending money?

Most small business owners need to be smart with money. However, being smart also means that you know when to spend money.

I have to admit that I have a hard time spending money. Recently I was making a decision to purchase some new equipment and I waited many days before clicking the buy button. My wife and I talked about the purchase and she was satisfied with the need, I knew that I could use the equipment but I am so used to be careful with money that it was hard to actually go ahead and buy the product.

I am not saying that you should spend money foolishly. I know I need the equipment I am buying and it will help me with my business, but just find it hard to make the purchase. However, I did have the money in the bank so there were no worries about us going into debt.

I came up with a list to decide whether to make a purchase or not:

1. Is the equipment needed?
2. Will the equipment pay for itself?
3. How long will it take to pay for itself?
4. Do you have the cash to pay for it?
5. Is there something else you can purchase for less to do the same job?

You may want to add more to the list depending on your needs.

While you need to be frugal with your money you also need to know when to spend it. The Ask John Paul Blog has some more on this subject.