Everyone likes to get something new and fun. Shopping has been proven to help people relax or feel better about things going on in their lives. Yet, there can be some serious negatives when that shopping leads to further debt or an inability to pay our necessary costs.

Here is the guide I follow when it comes to making purchases:

• Think before you shop, and then think again before you buy.
o Have I thought this over?
o Is this a need or a want?
o If it’s a want, can I and should I afford it?
o Will this just end up being stored somewhere?

• Shop around and buy quality products that are durable.
o Is it made well and will it last?
o Is there a guarantee or warranty?
o Is the company reputable?
o Will I be throwing this out in six months?

• Consider price, but not at the expense of quality.
o Am I choosing this brand because it’s the cheapest?
o Am I paying more for a famous label?
o Am I paying more because of the store name?
o Am I paying more to have it now?

This might seem extreme, but forming good shopping habits has a direct impact on our financial health. All of the little amounts that we spend add up, and much of it is unnecessary if we think before we buy.

More on shopping habits can be found in my book “Personal Finance Simply Understood”