“We’re having a really big sale. This is an opportunity to get our product at a super discount price. I won’t really make any money at all on this sale. And to get the special extras we talked about, we need to move on this now.”
You’ve heard a sales pitch very much like it many times in your life. Someone trying to create a sense of urgency to get you to make a purchase. But it doesn’t have to come from a sales guy. It might be that 4K curved screen TV that your neighbor has that is so cool, or this incredible stock that could explode upwards at any minute.
In our world today we are deluged with people telling us essentially “Give me your money now”. But how important is it really? Are you really missing the opportunity of a lifetime if you wait? Yeah there is a slight chance. But it’s only a slight one.
I suggest instead that you have a 48 hour cooling off period for any major expense, whether it’s a new car or a hot new stock. Talk to your spouse, talk to some friends, mull it over. Make it a hard rule that if you are spending over a particular limit, say $1,000 (maybe for you that amount if $500, or $5,000), then it must go through the cooling off period before you take out the credit card.
Let’s be honest. Part of the reason we are motivated to make a move is because we don’t want to listen to the rational voice that says “This isn’t such a great deal, let’s save that money instead”. So you need to give yourself permission after the 48 hours that if it still makes sense, move forward. But take that time. It could keep you from making a number of big financial mistakes over the years.