If you are on this page, reading this article, it means you are careful about your personal finances and your spending habits. Congratulations. But you are most likely confused about how to know if you can afford an item. Let’s take a guess. You’ve seen this item you really want, it’s probably costlier than you thought, and you want to buy it but you are double-minded. You are careful about spending, as much as you really need this item. So you want to know if you should go ahead with the purchase.
Why should you care though?
If you’ve asked yourself why you should care to know if you can afford an item, you are not alone. Others have asked the same question also. After all, you have enough money to make the purchase at the moment. But the fact still remains that Buyability is not affordability. What’s the difference?
Buyability vs affordability
Buyability simply means the ability to purchase an item. If an item costs 1,000 naira and you have that amount with you, you have buyability. But affordability on the other hand is your ability to purchase an item without feeling any dent in your finances. Affordability is what you should always consider when buying an item.
So, how do you know if you can afford an item?
You probably have heard people say if you don’t have enough money for at least 2 units of an item, you can’t afford it. Others have raised this number from 2 to 3. However, consider these before making that purchase.
- Can you pay full price upfront without it affecting your lifestyle or your ability to meet other financial obligations? If you have to pause on other financial commitments just to purchase an item, you might want to rethink.
- If the item gets lost or destroyed, can you replace it immediately without having to save for a long time?
The most simple way to determine if you can afford an item is to ask yourself this question: Is this costly? If your answer is yes, then you most likely cannot afford it. You should only spend money on costly items if they are needs, not wants.
Always bear this in mind. it’s not the cost, but the price of the thing that matters.
But this doesn’t mean you should give up on your wants, however, you have to approach them with a plan. Let’s say, you have a goal to buy a new house, or a new car, pay for rent, or even fund your education. If you can’t afford it at that moment, planning for it is the solution. You have to start setting money aside for it. Most especially, you need to be disciplined enough to do this, so you need a partner.
Reapgoal is a savings plan in the Reaprite app that will help you save towards any goal you have, so you can achieve them easily. Simply download the Reaprite app, go to Reapgoal, set up your Personal Target, or save as a group with Reap Village. More importantly, you will gain 12% interest p.a on your savings.
With Reapgoal, you can now afford to take a shot at your dreams and achieve them easily.
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