5 reasons or how to stop spending too much?

There is a very cool technique that allows you to make almost any decision. In global corporations, this technique is taught to staff and many decisions are made on this technique. And it can help your personal budget!

Do you think that technology is only applicable in large corporations, but in life it can not be applied in any way? Still as can be applied, and especially well this technique works in personal (well, or family) finances!

We recommend using it when you are planning expenses and especially when you or your family are trying to make spontaneous, unplanned purchases. This often happens during sales.

Recently, my wife and I went to a sports hypermarket because we had to make planned purchases before our trip. Usually we buy everything online to save time, but here we had to make purchases in the store and needed a long fitting.

It turned out that we were in the middle of a sales period, and I had time to observe the customers. Many of them made completely different purchases - from skis (well, this is understandable, prepare a sled in the summer) to new tires for bicycles and clothing for mountain tourism.

Moreover, it was clear that almost none of the buyers of all this equipment and clothing will not be useful in the near future, many bought on emotion because of 50% discounts and hoped that they would take up these sports, since there is a suitable equipment and clothing.

If they used the “5 why " technique, they would save some of their money.

The technique is very easy and I will explain it to you now with an example:

For example, you also found yourself on sale, and now you are making a decision whether you need a new smartphone that you did not intend to buy, but now it has a great discount. For example, 50% of the normal price.

For this price, you will get a smart smartphone. What decision will you make?

Let's try to run this idea through the "5 why":

Why do you want to buy this smartphone?
Because I want to surprise my colleagues.
Why do you want to surprise your colleagues?
Because I want to draw attention to myself.
Why do you want to draw attention to yourself?
Because I still have nothing to surprise them with, I feel insecure.
Why do you feel insecure?
Because I want to realize myself in the profession.
Why do you want to realize yourself in the profession?
Because I don't like what I'm doing.
What does the new smartphone have to do with it? After all, it is a matter of the profession that you are engaged in. To the 5th " why?” the real problem always comes out.

Let's look at another example. For example, you were at the same sports sale as me and found a 50% discount on skates. For example, skates cost 15,000, and now they cost 7500, and thanks to coupons you will get them for 5800. Luxury skates for a price several times lower than the market price. Run through " 5 why?"?

Why do you want to buy these skates?
Because I want to ride them.
Why do you want to ride them?
o get back in shape.
Why do you want to get back in shape?
To feel healthy and energetic.

On the 3rd why, I think it's worth finishing. If you know for sure that you will be skating on these skates and this purchase will motivate you to take up your physical form, and not just lie in the closet, you need to make a positive decision. If you are not sure about this and you do not have extra money, then 4-5 reasons with weak answers will tell you that you should buy something else or it is best to put this money aside. Read about how to spend money correctly so that it will benefit your personal budget in our blog.

This was one of the simple techniques that will help you make almost any financial decision, and most importantly, save your finances from spontaneous purchases.
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