Can You Afford It?

You walk into a shop, you see the TV/guitar/outfit of your dreams, and you really, really want to buy it. You definitely have to stop right there and ask yourself the important question - can you afford it? If you’re not sure you should try this list of reasons why you can’t afford something. You can’t afford this “must have” item if:

• You would be using your bank overdraft to buy it
• You would be using a credit card that has a balance on it that you can’t afford to pay off in full at the end of the month
• You would be using money that should be going to your emergency fund or into a retirement plan
• Your job is not secure at the moment - if there are rumors of lay-offs or your industry is experiencing a downturn
• And if the economy is in recession, then maybe you can afford it, but you should really wait and see.

So if any of these conditions apply, think twice before making a purchase. If you’re not sure, then take at least overnight to think about it. If you have to go all the way back to the shop the next day or week you will often find that you don’t really have to have the item after all.