Can I afford it?
Do you have a method for deciding whether you can afford to buy? There's a lot of discussion lately on suggestions for deciding whether you can afford a purchase, big or small. Here are some interesting takes.
My friend Karen Datko, one of the editors for MSN Money's Smart Spending blog, flagged some posts on how to decide what you can afford when you're standing in the department store/television aisle/auto dealership/mall/etc. Strump's 10 ways to tell if you can afford it" is here and Tough Money Love's version -- which is either a parody or quite a bit tougher, depending on your take -- is here (you'll have to read below the "welcome visitors" box that has a format error to reach it.)
If you follow Suze Orman, she often does a segment called "can I afford it" with callers who 'fess up their financial details and then await her ruling on whether their $5,000 vacation plan or dream of purchasing a boat should become a reality or not.
Of course, it's not just the big things. How often do you see some really useful item that you wouldn't mind owning or spot a good deal on an item that you could convince yourself you need (like additional bath towels or a great kitchen gadget or fabulous skirt/blouse/pair of jeans/whatever)? You have the idea.
When you're in that moment, confronted with temptation, how do you decide whether to go for it or whether to just keep walking? Do share, please.
Thanks for the mention. By the way, unless I went into the store with something specific to buy, I resist the initial impulse to buy something else. I always walk away and at least think a while.
Posted by: Mr. ToughMoneyLove | January 06, 2009 at 06:02 PM
I agree with Mr. ToughMoneyLove, and walk away. More than 90% of the time, I don't go back (out of sight, out of mind). If I go back and the item is still there, I figure I was meant to have it. Big ticket items? If I have to sit down and "do the math" to figure out if I can afford it, then I can't afford it.
Posted by: LSJ Reader | January 09, 2009 at 08:59 AM
These days, just about every purchase -- besides groceries and boots for the kids -- is prefaced by this question: "Does this fulfull my goal of paying down debt and amassing savings?" If the answer is no, I generally don't get it ...
Posted by: Kathleen | January 09, 2009 at 04:28 PM
Thanks for mentioning my post!
My main method these days is to leave my credit card at home.
Posted by: TStrump | January 20, 2009 at 11:29 PM