Living in a country where the minimum wage is slightly above N10,000 and more than half of its population is living on this, spending this amount on an item can feel like an indulgence or at least the tipping point where things begin to feel expensive. If you look closely, N10,000 can serve many purposes. For instance, it is around the price of a nice restaurant meal for two, a day’s outing with friends, a pair of nice shoes or clothing, the cost of a makeup glam look, Asoebi, manicure, grocery budget for a week (depending on your household number), or even the cost of servicing your car and opening a mutual funds account. 

So, while this is an accessible amount that many of us are perhaps willing to spend on an impulse purchase, it remains a valuable sum that is easy to keep in mind when making purchases slightly above your financial punch. And now, without further ado, let’s dive into the 7 questions to ask yourself before spending N10,000.

1. Why do you want it?

Why you want an item can seem like a tricky question because when the human mind wants something, it can come up with a hundred reasons why getting it is valid. However, the question ‘Why’ begets you to dig deeper and re-evaluate your reasons behind a purchase –  is it a need or a mere want? Perhaps, you believe it is just another nice add-on or something you may never come across again. Whenever I feel this way, a common trick is bringing in the question of time to justify a need or want. My point is, anything that isn’t urgent might just be a want.

2. What is the cost per wear?

Recognising the cost per wear/ use of an item before making a purchase can prevent you from being penny-wise and pound foolish. Before making a purchase, think of how many times you will get to use this item. Suppose you want an item that costs N10,000, and you will get to use it up to 20 times; that’s a better bargain than buying an item that costs N2,000, of which you will only get to use it once. The cost per wear on the former is N500 while that of the latter is N2,000, which is more expensive. So you see, going cheap is not always the solution. However, the trick lies in purchasing multifunctional items that are of good quality.

3. Can I save for something better?

Even though we all love a good bargain, prudent living is not about hunting for cheap things, as going cheap can sometimes lead you into compromising on salient matters. A typical example is trying to save money when buying a mattress. Compromising on a good mattress can affect your sleep and subsequently, leave you with severe and sometimes irreversible health problems.

Another way to look at this is to consider if this amount can be better used by investing in a future goal. You see, learning to curb your spending can be a lot easier if you have a specific goal in mind for that money. For instance, instead of splurging on those sparkly nails or another glass of cocktail, you can decide to add that money to your savings for a vacation, a course, or a much-needed business tool that will make your work easier.

4. How many hours do I have to work to earn this?

Calculating how much time you need to put into work to earn an item is one tactic I find very useful when deciding on the importance of a purchase. Here is a quick example. Suppose you earn N200,000 monthly and work for an average of 21 days in a month at 8 hours daily; your hourly pay will be an estimated N1,190. Therefore, if you’re purchasing an item of N10,000, it means at some point, you had to devote over 8 hours of work just to own that item. Now, that should make anyone have a rethink. Is that sparkly gold shoe that you’re only going to wear once worth 8 hours of your life?

This does not mean you should focus solely on buying items below your hourly or daily rate. However, it serves as an excellent measure to know what purchase is excessive and which isn’t depending on your financial situation. Basically, you need to find a balance between living a happy life and being practical on things.

5. Does this fit my lifestyle?

When it comes to spending money wisely, a common mistake people make is spending money on things they believe will improve their lives without first adjusting to that lifestyle. A typical scenario is buying expensive workout gear and an apple watch with hopes that it will get you excited about jogging in the morning. There is a high chance that you are still going to want to sleep in when your alarm buzzes. As a result, you are now that person with an expensive neon light gym wear in the wardrobe and an iWatch solely for telling the same time your swatch watch was already telling you.

In essence, make sure you are already jogging and putting in effort into morning exercises before going ahead to purchase that gym outfit.

6. Are there other alternatives?

Thinking about other possible options for an item before making a purchase can save you some extra bucks and leave you feeling more fulfilled. Easy ways to identify alternatives begins with looking through your wardrobe or start a mental search to confirm if you have something similar. Secondly, ask yourself if this item can be borrowed, and lastly, are there other cheaper but practical options. For instance, is that amped-up camera on the new iPhone worth changing your phone if your current iPhone is still functional? It’s not like we all notice the camera difference anyway.

7. Do I have space for it?

One of the benefits of the overbearing minimalist lifestyle that has saturated our lives in the last few years is the beauty in having less. People are slowly learning to value their space over things, and you can use this as a deciding principle before making a purchase.

Questioning where an item will be stored and how it will fit into your home can be the deciding factor between getting it or letting go. In Chelsea’s words from the financial diet, each new item should be useful, valuable, and well stored.

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In a nutshell, while N10,000 can seem like an amount you do not mind spending on an impulse purchase, it is worthy of remembering that tiny drops of water make an ocean. Failing to ask yourself in-depth questions like the ones discussed here before making a purchase is unwise because one day, you will be staring at a box full of unnecessary things that you regret buying, and you will wish you had put the money into better use.