All of us want something in life and most of us want luxurious items, which sometimes are not in our budget. Whenever we are out to shop, we find ourselves looking at a beautiful watch, car, or other luxurious items in the store. But should we just buy whatever we see without worrying about debt or our future?
Of course not! Never buy anything that you cannot afford. You will regret the purchase later when the item you buy gets worthless or even useless for you. It has been proven by research, that after you the product, the excitement doesn’t last long.
A budget is what makes the average person a millionaire in life. A budget is what takes a business or a household from poverty to a comfortable life in the suburbs. A budget is what decides your life in the future.
If you have made a budget for yourself, you must not allow yourself to spend more. Once you go out of your budget, and get away with it, you will make a habit of crossing your budget. Many people buy things that they cannot afford and then end up paying more to the financial planner for getting them out of the debt. Make sure that you don’t even do it once, and you will never have trouble leading a comfortable life.
Another disadvantage of buying something when you cannot afford is paying penalty fees. Most credit cards have penalty fees and they are usually very high! If you cannot pay the full amount that you owe them and the interest, you will get penalty and end up paying much more than that item that you have purchased.
If the item you have purchased requires instalments, you might be over your budget every single month, and imagine living a life where you are never debt free. I for one would not like to live in debt for years because of one foolish purchase.
The disadvantages and problems don’t stop there. In the future you might have to give up a lot more items if you decide to buy something that you cannot afford right now. Human beings never stop demanding for items, and in today’s world items become obsolete within a couple of years. Your item might become obsolete, and your new demands will not be met if you decide to buy something right now, which is not in your budget.
Most of us aren’t millionaires. And we shouldn’t act like one because it can lead to a disaster. Instead we need to make a budget and follow it so that we can become a millionaire one day and buy the luxurious items and stay in budget at the same time!