Should I Buy That…?

We’ve all found ourselves in a purchasing dilemma at some point. You really want that dress but your bank account doesn’t think it’s a good idea. If you find yourself thinking “should I buy that…”, you most likely shouldn’t. It’s tempting to take out a “small” payday loan or borrow from a local moneylender to pay for certain vanity items.

You think you are only borrowing a tiny amount at a reasonable interest rate, but the next thing you know, you are at a debt counselor considering filing for bankruptcy.

Read below for a list of items that are known to push people deep into debt so you can postpone these purchases.

Designer Clothing and Shoes

These are perhaps the dumbest types of purchases that people make and end up nose-deep in debt. Don’t get me wrong now. There’s nothing wrong with buying a designer purse or a pair of Jimmy Choos when you can without having to borrow money. If you swipe your credit card on a monthly basis buying branded clothes, shoes or accessories, you are going to be in deep trouble soon.

Clothing and shoes are the biggest contributors to impulse buying. And we all know how compulsive shopping leads to lifelong debt. Therefore, teach yourself to only buy designer items with your paycheck or after saving money for several weeks.

Luxury Homeware

If you are about to move into a new home, or want to buy tableware that you don’t already own, don’t choose the luxurious branded homeware items. Sure, you will need to use these items for several decades. Spending a fortune on luxury homeware when you cannot afford it is not a good investment, however. Instead of going for luxury, choose durability. Most homeware looks great even if they are not branded. Don’t end up taking out a personal loan just to pay for a box of Goop spoons.

Interior Decorators

Every once in a while we all go through a phase of redecorating our homes. No one wants to keep looking at the clutter in the living room forever. However, unless yours and your partner’s combined income goes up to six figures, don’t hire an expensive interior decorator. This is an overblown profession if there ever was one. You can easily give your home a professional makeover by researching online and reading home decor manuals. Not only will an interior designer will be expensive, he or she will prompt you to overspend on decorative items.

Boats

Boats are cool and fun for the whole family, but purchasing one should definitely be postponed until you or your family members are financially secure. Boats are expensive to buy, and even more expensive to maintain. So, when you make the calculations to buy a boat, don’t forget to factor in the monthly maintenance. Also, a boat counts towards your overall wealth. If you have to default on a loan, the creditors can easily claim the boat.

None of the above items should be purchased if they are beyond your ability to pay. Instead you should postpone these purchases until you can afford them.

If you have to take out a personal loan for any of the above, don’t, because they are not at all worth it. Just because something is expensive, it doesn’t mean that the item is worth it, or even necessary. If you ever want to be truly debt free, it’s important to learn to live within one’s means.

What do you think is actually worth taking a loan for? Have your taken care to postpone these purchases?

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