Justifying big purchases

Big purchases are a big deal!  Whenever you purchase a car, home, boat, or any other big purchase, you should really spend sometime thinking about it.  Think about a mortgage on a house or a car loan.  You will need to make monthly payments on these loans for upwards of 10, 15, or 30 years.  You could also be paying upwards of ten-thousand, fifteen-thousand, or thirty-thousand dollars in just interest.  All too often, the salesperson will push you to buy immediately without much thought because he/she will say, “why say no when it feels so good to say yes”.

Recently, I’ve been looking at Tesla Electric Cars because my friend just purchased one and I love it.  I could trade-in my Jeep for $15,000-$18,000 and if I purchase the Tesla before 2019, will receive a $7,500 tax credit.  At the end of the day, I cannot justify this purchase even with the money I would save for gas.  As I look at my long-term goals of quickly paying off my mortgage and getting to 0% debt by 2023, this purchase of a Tesla would only delay my financial plans.  It is unfortunate, but I must stay discipline even if it is very difficult.

It has been a while since I reflected on the Civil Accomplishment strategy, which are as follows:

  • Share useful information to those interested in improving their financial situation.
  • Gather information/data to better prepare ourselves for the future.
  • Understand our goals and build a plan to reach them in a timely manner.
  • Learn from our mistakes.
  • Celebrate our successes.

I do feel my analysis of purchasing a Tesla remained true to each of these points in someway.  Specifically, gathering information/data to better prepare ourselves for the future and understanding our goals and building a plan to reach them in a timely manner.  I understand my goals, which helps me create direction on whether or not I should purchase a Tesla, which can cost upwards of $80K.

Think about some of the big purchases you may want to make and try to review them 360.  Don’t just push the evaluation to make it come-out favorable to what your initial wants are.  Try and really evaluate every angle to make sure it is the right decision.  Too often, people ignore certain aspects to make the decision they wanted from the start.  I try to make decisions unbiasedly and based on purely facts.  Now and then, emotions may get in the way.  We should try and eliminate as much of this as possible.

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