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W.E.A.L.T.H.

I was a little skeptical at first about today’s guest post at Get Rich Slowly (How A Haircut Led to a Handy Acronym), but it ended up being really good.

At the core of it is an acronym (WEALTH), which offers a series of questions to ask before making a purchase:

  • Want or need? (As you’d expect: Is this purchase necessary?)
  • Ego? (Is this purchase simply to “keep up with the Joneses” / to feed your ego?)
  • Add-ons? (Is this purchase self-contained? Or are there multiple add-ons that will end up being necessary for it to function?)
  • Lifestyle? (Will purchasing this mesh with your current / ideal lifestyle? Or will it diverge in complicating ways?)
  • Time? (Is this a one-off purchase? Or will you have to buy more of it down the road?)
  • Happiness? (Will purchasing this really make you happy? Or will it pull you away from other things you’d rather be doing?)

    • Obviously, it’s not saying that “just because something’s a want, you shouldn’t buy it,” or “just because there are add-ons that you might need to buy down the road, you shouldn’t buy it.” It’s simply saying that as you consider purchases, these are factors you should consider. It’s a good list.

    You can read the whole thing here: How A Haircut Led to a Handy Acronym.

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