My Mistake In Buying Unplanned Purchase

 

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Let me share a story on how I turned a financially bad situation into a good one.  

Sometime June 2009, I bought a bag in a mall.  It was an impulsive purchase because I felt I had to reward myself since I have been “diligent” in saving money.  

So I splurged on a bag!  Since it was a “special bag,” I only used it on weekends and special occasions.  

I used my credit card (payable in three months) but I had a hard time paying for it because it was an unplanned purchase.  But I survived!  

Unfortunately, on the sixth month, the bag broke!  The strap that was connected to it was detached and it couldn’t be repaired anymore.  I cannot believe how that can happen to such brand.  

I immediately went to the store and asked for a refund.  The staff told me that this was not possible and they can only exchange the item with a new one.  

At first, I got excited with that thought, I mean, it’s like getting a new bag again.   

But I also had second thoughts...I don’t trust the brand name anymore because of the poor quality (my bag was relatively new at six months).  

Plus, Christmas is coming (this happened November 2009) so I need extra money to buy presents for family and my god children.  

And then came this idea:  instead of refunding which they don’t allow, maybe it’s possible to use the return slip to purchase items from their sister companies.  In this way, I will be able to buy presents for my Christmas  list by using the return slip.  

So I asked the staff about this possibility and she made some calls to the head office and finally, it was approved!  

I was hitting two birds in one stone.  I now have the means to buy Christmas presents without spending my 13^th month pay.  Besides, my bonus was intended for a mutual fund investment.

Looking back at my story, here are the financial mistakes I made:

• I made an impulsive purchase of getting a bag that I cannot pay through cash with the excuse that I can pay it through installments.  Big purchases like this must be planned and budgeted.
• I paid the bag through monthly installments which made my “buy” decision easier since I paid in “smaller” amounts.

I would also like to give credit (ahem) to my practical financial wisdom:

• I kept the receipt and other pertinent documents in the event that a crisis like this happens.
• I did not add injury to my already bleeding financial condition by getting a new bag and instead used the situation to my advantage. I was able to serve two objectives:  buy Christmas presents without using my 13^th month salary and invest my 13th month pay in mutual funds.

I still make mistakes in shopping or buying impulsive items but I would not consider them as big purchases.  Never again will I allow myself to be in a similar situation. 

My new, independent financial advise in buying bags -  if I can’t pay in cash, then I can never afford it.  It's as simple as that.