Four Ways to Know When to Spend Money

Because we know we must spend money, and because there are times when you really will find a good deal—many people have saved hundreds or thousands of dollars finding the right purchase at the right time—how do we know when to buy something?

Let me first suggest this: Regardless of how attractive it looks, if you must take on debt, don't make the purchase. Without the money, it is not a good deal for you. You might be tempted to say, "If I don't get this now, I'll never find this good of a deal again." That's probably not the case. With patience, you'll probably find another good deal in the future when you have the money to make the purchase.

But assuming you have the money, let me give you four principles to help you determine when to make a purchase.