What are the 4 P’s of spending? Saving money is one of those difficulties for many people and being in the age of online shopping certainly presents extra challenges. It’s so easy to press a few buttons and before you know it, you’ve just spent your whole week’s wages in a few seconds.
The next time you’re about to hand over your hard-earned cash, stop and run ‘the 4 P’s of spending’ checklist through your head – Pocket, Priorities, People and Planet.
How much spare cash do you actually have? Can you afford this item? Think about your income and all of your expenses. Are you going to able to pay the rent/bills/mortgage if you purchase this item? Will it leave you money for an emergency?
Is this something you really need or something you really want? Could this money be better used elsewhere? Remember the quote ‘don’t give up what you want most, for what you want now’. If you have a goal, don’t lose sight of it.
People & Planet
Think about how your product purchase affects the bigger picture – is what you’re buying ethically sourced and produced? For example, if you’re purchasing clothing, has it been made by people who are working in poor conditions with an unfair wage?
Does your purchase cause any harm to the environment? For example, were there toxic chemicals, pesticides used in the making of your item?
Remember these 4 P’s as a checkpoint for the next time you go shopping. Run each of them through your mind to get a sense of whether it’s worthwhile making the purchase.
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Disclaimer: This post has been prepared for general information purposes only. It is not specific advice to any particular person. You should consult an authorised Align Financial adviser before making financial decisions. Align Financial | Financial Planner Northern Beaches | Servicing North Narrabeen, Narrabeen, Mona Vale, Elanora Heights, Newport, Avalon, Palm Beach | Enquire with us online.