Questions to Consider Before Making a Purchase: Insights from Martin Lewis
Martin Lewis, the founder of Money Saving Expert, has offered a simple yet effective method to help people save money when shopping. His advice revolves around asking three questions before making any purchase, with different sets depending on whether you are tight on money or not.
For those who are skint (tight on money), the questions are: 1. Do I need it? 2. Can I afford it? 3. Have I checked whether it's available cheaper elsewhere?
The advice here is clear: if you don’t need it or can’t afford it, don't buy it; and always check if you can get it cheaper before purchasing.
For those who are not skint (can afford to spend), the questions shift to: 1. Will I use it? 2. Is it worth it? 3. Have I checked whether it’s available cheaper elsewhere?
This set encourages thinking about actual usage and value rather than just affordability and necessity, followed again by a price check.
The key difference is that for those with limited funds, the focus is on need and affordability, while for those with more disposable income, the focus is on utility and value. Both groups are urged to compare prices to find the best deals.
The comment section of Martin's social media post was filled with followers sharing their own penny-saving rules. One follower shared that they were taught by their dad to equate the cost of a purchase to the number of hours they would have to work to pay for it. Another commenter advised considering whether an item can be found secondhand to reduce waste.
Martin also highlighted an error that could affect State Pension contributions and emphasized the importance of considering the opportunity cost when spending money, and not to spend it if it could be better spent elsewhere. He also advised against buying a £250 item of clothing if it will only be worn once.
One commenter suggested checking Vinted for second-hand items to save money. If you haven't checked whether it's available cheaper elsewhere, Martin recommends doing so before buying. His simple yet effective method can help anyone save money and make more informed purchasing decisions.
- For those embracing 'personal-finance' principles, Martin Lewis' method recommends questioning the utility and value of each potential purchase, such as considering whether an item is worth the cost and if it will be well-used.
- The importance of 'saving' is emphasized in Martin Lewis' approach, as he advises individuals to check if cheaper alternatives are available before spending any money, even for items deemed necessary or worth the cost.
- In pursuit of 'health' and 'wellness', Martin encourages consumers to spend their 'finance' on enhancing their home environment by reusing or buying second-hand items, promoting a greener and more cost-effective lifestyle.
