Don’t Climb Into Debt To Furnish Your New Home
If you can’t afford it all, buy one piece at a time
Someone told me the other day they lost their job, and they're hoping to get a new one soon because they just moved to a new state for the job.
Not only that, but they used her credit card to furnish their new home.
Uh oh.
Thankfully, they have some savings to cover their basic expenses while looking for a job, but they obviously didn’t have enough expenses not to go into debt to furnish their new home.
What many people don’t want to hear is the following:
Don’t furnish your home unless you can pay cash for it. Going into debt to furnish a home is not prudent in any way.
The Person That Bought One Piece At A Time
When I was younger, one of our family neighbors had an empty house.
They bought one piece of furniture at a time, so their home was relatively empty whenever we’d go over and visit.
At the time, something about it stuck out to me. I wondered why they didn’t furnish their home altogether.
I later came to find out they didn’t buy furniture unless they could pay cash for it. They were unwilling to go into debt over house furniture. This was a few decades ago, and I still can’t forget it.
Most People Don’t Delay Purchases
Why can’t more people conduct their finances as this person did?
Because it takes immense self-discipline.
Waiting to buy what you want is not fun — especially if you have a credit card that can buy what you desire now.
In this case, this person chose to furnish their entire home on their credit card, and now they are jobless and without income.
They will get a job because they have valuable skill sets, but now they have a deadline. They have to get a job soon before they run out of money and can’t afford their bills and the credit card payments that furnished their new home.
I get it; appearances mean something to most of us, and we want our homes to look extra attractive when we have family and friends over. But it’s not worth it if you’re breaking the bank to do so.
Choose Your Bank Account Over Appearances
Never neglect your pockets for appearances. I repeat, never.
Appearances will fade, but your pockets don’t have to as well.
Most people need money, and there are consequences if you don’t have it.
If you practice enough financial self-discipline, eventually, you won’t have to delay purchases frequently or at all.
But many people will always stay in the “need to delay purchase” bucket because they continue to buy everything when they want it when their income can’t afford that lifestyle and habit.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.