When you simply don’t know how to manage money well, you must ask yourself a few questions when making a purchase:
#1
Can I afford it?
Duh, OK I know this seems elementary but you must be willing to be honest with yourself. Just because you have the money doesn’t mean that you can actually afford it.
Let’s say your sister is getting married and you want a new dress to attend the wedding. You have $200 in the bank the dress costs $120. You may say to yourself, YES I can afford it, but if that’s all the cash you have then NO you can’t afford it. You have to look at cash as insurance on future emergencies. You can’t just wing it and say I will get it now and suffer the consequences later. Be smart about it.
#2
Would this purchase put me in debt?
If so, can I properly manage the debt or pay it off within 30 days. If you are sure within a month you can pay off the debt that you incur, well yes you can afford the item. Be careful because most people say this to themselves and realize they actually cannot afford it. Once you start to pay interest on an item it is considered wasted money.
#3
Can I afford to do without it?
Always seek alternatives. If I cannot afford it, can I afford a lesser alternative? Ask yourself, what is the worst that can happen if I don’t buy this now? Instead of the $120 dress you may be able to buy a cheaper dress and bulk up on savings later. Is there another dress that I can wear to the wedding that I already own?
This can be hard for people that is programmed to buy what they want when they want it. They almost always have an alternative, but because they are use of spending out of habit, they will use the wedding as an excuse. (this is when credit becomes tricky). You have to change your mentality when it comes to materialistic things. Things go down in value and experience live on. Experience the wedding and not what you are wearing. The day after most people don’t remember (or care) what you wore. 
#4
Is it an priority?
We often get our priorities mixed when it comes to consumption. Let’s say for example, you have a dentist appointment and you also desire a state of the art cell phone. The cell phone costs the same price as the dental appointment procedure. You may instantly have gratification towards the cell phone, because you can show it off and enjoy all the functionalities of a new phone. However, taking care of yourself can payout in the long run. By having checkups now, you may forgo larger costs by ignoring your health. Again be smart and delay gratification. You can always get a phone later. Taking care of your health is a need.
