subject: The Burn Of Buyer's Remorse [print this page] It's a familiar scenario that all of us have experienced at one time or another. We'll be shopping with a friend, then find ourselves instantly weighed down with a purchase of our own. It was a purchase of frivolity that has left you reeling, while thoughts of the potential financial fallout have you wondering if you shouldn't try to immediately return the items (if possible). Nobody is immune to it, but the question is whether your buyer's remorse is a sign of logic and reasoning entering into the equation, or if you're simply overreacting to the situation at hand.
The answer as to which situation you're in depends entirely on your finances, and your financial goals (both short-term and long-term). You need to consider your overall income, and your financial obligations, before you can consider what you have left to spend. Will this purchase have significant effects in terms of how well you can maintain your present bills and necessary expenses? Or was it only slightly outside the norm of what you would spend, and ultimately something you can afford with careful spending going forward? The answer to this depends on your needs, your finances, and your perspective.
Balance and planning are the most important parts of establishing and maintaining the kind of financial habits that will keep your debt manageable and your credit standing strong. Balance comes into play when figuring out how, when and where to use the money you earn be it on bill payment, debt reconciliation, regular expenses such as food and commuting costs, or clothing and indulgences. Planning is all about working out a reasonable balance and seeing it through as you go. So with these principles in mind, think about what's caused you to feel buyer's remorse, and moreover, whether that purchase tampers with the delicate balance and planning you've put in place.
Also, these ideals are important great in theory and crucial in practice. But the reality of the world is that you can't predict what will happen. Sometimes, you'll want to treat yourself to something, and do so without giving it extensive thought. Other times, you'll find yourself saddled with a cost you had little to no way of anticipating, such as expensive car troubles. Either way, it is pretty much guaranteed that your budgeting will be compromised by something alone the way. The important thing is to, first and foremost, have adequate savings available that will help you if you find yourself in need of emergency funds. But also, after the purchase is made, if it can't be unmade, you need to revisit your budgeting plan to incorporate the dearth of funds from the unanticipated spending.
At the end of the day, it's not a crime to make the occasional splurge, as long as it's within reason (and truly made on an occasional basis). Unless you're a millionaire, for example, you can't simply purchase a new car because you want to do so, and then repeat the mistake every year. But beyond that, the definition of what falls beyond your means is entirely relative to your spending, saving and earning situations. No matter what, though, it's important to monitor your money carefully.
by: David Clifford
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