Friday 14 June 2019

3 Simple hacks to help you afford expensive things

Even if you don’t have expensive tastes, you will still be faced with scenarios where you need to buy some expensive things. Cars are costly, big appliances like fridges or washing machines aren’t cheap, and houses are most certainly going to cost a lot.

When faced with something expensive, your first thought is that you can’t afford it. You either don’t have the money right now, or you know it’s going to drain your finances if you make the purchase.

However, if you’re smart, there are ways you can afford the expensive things in life. Try out these simple hacks if you need to buy something that’s got a big price tag on it:

Buy Now, Pay Later
In some cases, you know you can afford something, but your current financial situation makes things difficult. Perhaps you’re getting paid in a few weeks, but you need to buy a new fridge because your old one broke. So, what can you do about this?

If you have a credit card, you can buy things using it, then pay for them a few weeks later when your bill comes in. This allows you to get things that you can’t afford until you get paid. Make sure you can actually afford to pay off your credit card bill though! Don’t buy items on your credit card unless you’re confident you’ll have the money when the bill comes through.

Spread the total cost over a few months
Here’s a scenario; you need to buy something, and you can technically afford it, but you know that spending all that money will leave you in a bad financial situation. You’ll have hardly anything left in your account, so what do you do?

Well, one trick is to try and spread the costs over a few months - if possible. When you buy something expensive, like a car, then you can pay for it in different ways. As it shows on the Van Stop Bolton website, you can get car finance. Essentially, this means you pay a monthly fee until the total cost of your car is paid off. Instead of spending all your money in one go, you split it into manageable payments.

As such, it’s easier for you to buy something without damaging your budget too severely. Try and take this approach if it’s possible!

Borrow Money
If you want to buy a house, then you’re almost certainly not going to be able to afford the full price of it. The same goes for very expensive cars or things like a house extension. In these scenarios, there is one thing you can do.

Borrowing money is only an option if you can afford to pay it back. When you buy a house, you need a mortgage, and you make manageable repayments until the mortgage is repaid. It’s never recommended that you turn to loans straight away. Use them as a last resort, and make sure you get them from verified lenders.

You should use these three hacks if you’re faced with costly purchases in your life. Don’t use them as an excuse to just spend, spend, spend! Instead, they’re handy when you actually need to buy something expensive. When that's the case, they help make things easier to manage.

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