Knowing when to buy and when to skip out on a purchase can help consumers maintain a positive cash flow. Weblog Get Rich Slowly suggests applying the W.E.A.L.T.H acronym to make more economically sound decisions.
Photo by jpockele.
According to Get Rich Slowly, breaking down potential purchases according to the following acronym can help cut down on superfluous spending.
Want or Need? Ego? Add-ons? Lifestyle? Time? Happiness?
Concerning the Add-on element of the equation, the site's guest blogger Lynn says that consumers should factor in other expenses—dubbed add-ons—associated with primary purchases. For example, where getting a haircut is concerned, additional hair products needed to maintain the cut might make it more prudent to opt for another crop entirely.
How a Haircut Led to a Handy Acronym [Get Rich Slowly]