Can You Afford It?

You’re standing in front of a shiny new Lexus. It’s beautiful. You want it. But can you afford it?

Being able to afford something is a matter of perception. Hence, I feel that our society has justified expenses that they should have never taken on in the first place. When people don’t have a standard, they tend to “afford” things that put them into debt.

I can’t tell you how many countless times I’ve heard someone justify a purchase because they could “afford the payment.” Really? Could they afford it? What does that mean? Does it mean that you can go into debt, pay a lot of interest, and hope to meet the minimum monthly payment? If so, I wouldn’t want any part of that?

Keep it simple.

Don’t get me wrong, my household has debt. However, we’ve made the commitment never to go into debt again (except a reasonable mortgage, if desperation kicks in). We’re keeping it simple by having the money first before we pay for something. You work, you earn money, you spend money. No more spending someone else’s money, working to earn money, and paying somebody principle + interest.

That’s all. Really!

This is going to be a short post. Why? Because it really is that simple. Just start spending what you have. Cut up your credit cards and get on a written game-plan. You can do it. Don’t fall into the trap of thinking you can afford the item if you can “afford” the payments. You’re just wasting your money, and you’re gambling that you can pay the money back!