6 A decision-making model to take control of spending decisions
Having examined the various internal and external influences on spending decisions, it’s time to take control of how you go about spending money. There are a few simple steps that can help you make good (or at least better) choices of products and services.
Watch Video 3 on the four-step decision-making model.
Transcript: Video 3 A decision-making model to take control of spending decisions
Activity 8 Making spending decisions
Think back to a recent major purchase you made – perhaps a car, a household appliance, a new computer. Having watched the video, if you were now to make a similar spending decision would you approach it differently?
Clearly the answers are personal to you. The key questions are:
- Did you do some market research before buying?
- Did you take time to locate the best deal?
- Did you then act promptly to buy the product?
- Did you negotiate the terms of the deal, including the price?
- Were you prepared to switch services when buying such products as insurance products, and utility, internet and mobile phone services?
- Are you using the outcome to guide you when making your next major purchase?
All this may seem like a bit of a chore – but you may be amazed how much you can save each year by applying this four-step model.
Next you have a short quiz before examining how the four-step model can help when it comes to buying insurance products.