What's your budget?
I hate that question. To me, it makes absolutely no sense.
If I'm going to be buying something that usually generates that question from a salesman, I never have a budget. And it's not the question they're really asking anyway. They're really asking, how much can I fleece you for.
Buying a car usually generates that question.
What's your budget?
However much it costs, if I think it's worth it.
When I started my first job after university, most of my colleagues quickly went out and bought themselves brand new cars.
They decided on a budget, and they not only stuck to it, they made sure they spent all of it.
And almost all of them bought crap cars, just because they could afford them. They were small hatchbacks, usually. With nice metallic paint and some nice optional extras if they hadn't used up their budget with the basic model. They were all bland, nondescript boxes of metal that fit the criteria of being brand new and matching their budget.
I, however, chose a car that I wanted. They didn't manufacturer it any more so I had to buy it second hand. It matched all of my criteria, it was sporty, a dream to drive, reasonably fuel efficient and very very reliable.
I spent a tenth of what my colleagues spent, and at the age of 22, I got a lot more fun out of my car than they got out of there's. If mine cost as much as there's, would I have still bought it? Yes, of course. And if it had cost more? Yes, if I thought it was still justifiable, and if I could afford it.
But I didn't go to a car salesman, give him my budget and let him find me something close to that price. That would be stupid.
If I couldn't find something that I could afford, I'd have made other arrangements, or bought a similarly crap car for much less money.
I remember I was once looking for a house to rent and the letting agent asked me what I wanted to spend. I told him I didn't want to spend anything, I wanted a house. So he asked me what my budget was. I told him that he could ask the same question any way he liked and he'd still get the same answer.
I gave him my requirements.
He immediately found the most expensive one on his computer that matched the requirements (I could see his screen). It was nearly £1000 per month. I told him that I didn't think my requirements could seriously justify anything over £700 per month. He took that to be my budget and scrolled back to the £700 properties and worked back, offering properties for £700, £695, and £680. I just sat there and waited until he stopped taking the piss and tried to find me a place I'd like, rather than a place he thought he could make a nice commission from.
He didn't.
So I got up and left.
I didn't want to spend anything. Money is a means to an end. It should not be used to define a requirement. By all means, have a limit price, but not a target price.
