You see that plush couch with stylish pillows in the furniture store window. If you had it in your own home, you could sink into the soft cushions and take a refreshing nap after a long day’s work. Whether you wince at the price tag, or you know you have the reserves to make such a purchase, take a step back and consider a few things first.
Taking a Step Back
Give yourself a chance to truly consider if the purchase is worth it or not. Before you buy the couch – or any big piece of furniture, ask yourself:
Maybe you’ve got hand-me-downs or nice, durable furniture, but seeing that new couch makes you want to freshen up your living space. Whatever the case, don’t bite off more than you can chew.
If you already have some money saved for new furniture…
GOOD JOB! You’re ahead of the game if you set aside money each month in preparation for buying new appliances/furniture.
Of course, many of us may not be so fortunate to have oodles of cash on hand.
If you do save money for this kind of purchase but you don’t have enough yet, then be patient. You may be looking at a couch worth several thousand dollars, so continue to save up. Resist the temptation to make up the difference with a credit card or money from some other part of your budget. (You don’t want to purchase a couch with some of your emergency savings only to get in an accident the following week.)
If you can’t afford it right now…
Save! Save! Save! Patiently set aside money and you should be able to get that couch eventually.
One of the ways to start saving up, once you have a clear goal, is to (1) figure out how much you need to save in order to meet your goal, and (2) establish how much money you can afford to put towards your goal each month. From there you’ll have the time frame for how long it will likely take to meet your goal.
If you want a couch that’s $3,000.00 and you can afford to set aside $300.00 a month, you can purchase that couch in less than a year. If you want to boost the amount you save each month, consider changing some of your discretionary spending in order to put more money towards the couch. For instance, you could skip the bi-monthly movie theater trips for a while and put that money towards your goal each month.
Making a big purchase – like buying a new, stylish couch – comes back to your budget. Think about your income, how much of it goes towards expenses, and what’s left over. If you want help creating a budget and learning possible ways to meet your savings goal, talk with a Money Coach. Your Money Coach can also provide worksheets and offer more insightful questions to help you. Talk with a Money Coach today at 888-724-2326.
The holiday season is upon us, and you know what that means. Shopping. (And pumpkin spice lattes, of course.) Before you buy gobs of candy for trick-or-treaters, plan your Thanksgiving feast and look for the perfect Christmas gift, remember this: shopping can either hurt or help your credit. Why is credit so important? In the […]
You don’t think twice about protecting your shiny car, and in most states, you don’t have a say (quite frankly). But there is another type of insurance that people should consider, and many employers, banks, and institutions are considering making it mandatory as well. Let’s take a look at why…. Car Insurance $164.2 billion in […]
Your credit score probably isn’t something you talk about or even think about on a daily basis, but your credit score is one of the most important aspects of your financial life when it comes to qualifying for a loan, securing a good interest rate, and the amount you pay for auto insurance, or even […]
Did you know that serious debt problems plague 32% of Americans? Do you feel like you may be part of that 32%? Consider the following questions to find out. Do you have trouble meeting minimum payments? Do you live paycheck to paycheck? Do you often use credit cards to buy items you can’t afford in […]