RISCARIO INSIDER: HOW DID YOU MAKE YOUR LAST $500 PURCHASE?

February 6, 2010

HOW DID YOU MAKE YOUR LAST $500 PURCHASE?

How you spend your money reveals your values.

You may make small purchases without noticing how they quickly add up. That's the concept of the latte factor which was recently discussed on other blogs in Rethinking the Latte Factor (on Million Dollar Journey) and When the Latte Factor doesn't work (on Thicken My Wallet).

You probably notice your larger expenditures when you receive your credit card statement. Think back to your latest sizable purchase. Let's say costing $500 or more. Pick something smaller than a condo or house. What was it?

Here are some ideas.

a bike
a boat
a car
cookware
clothing
a computer
an exercise machine
golf clubs
a gym membership
an HDTV
a home renovation
jewelry
a pet
a purse
a smartphone
software
a stove top
tuition
a washing machine
a wrist watch
a vacation

Relax. This blog post won't ask why you buy or suggest you save the money instead. Maybe you're saving on lattes to buy something big. That's fine. We're looking the how, not the why.

Your Decision Process

When you made your $500 purchase, how did you decide what to get?

the brand
the design (elegance or functionality)
the features (as few as needed or as many as possible)
the price (low, medium or high)
recommendations from others
the retailer
the return policy
the warranty

How much time did you spend deciding? Did you buy on impulse or research extensively? Was your research online or in store?

Many Factors

Many factors affect our decisions. Most aren't logical because we aren't ... even if we pretend we are. What does how you bought say about you and how you can be influenced?

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