Don't Buy Stuff You Cannot Afford

SNL did a great skit 10 years ago with sage advice that still holds up extremely well. It is sort of sad that credit card debt or just consumer debt in general has gone up per person. It is never a good idea to have any credit card debt so it's fascinating that even with PSA like this SNL skit there are still individuals that don't understand the issue with over spending. Enjoy 

Wait till you have enough money to buy something or just, Saving is hugely beneficial and can literally save you thousands of dollars over the course of your life. Assuming an average credit card interest rate of around 20%, the cost of carrying this debt annually can be hugely detrimental. For example, if you carry an average balance of $3,909 and only make minimum payments, you would pay over $700 annually in interest alone. Over a decade, this could add up to around $7,000, assuming you don't accrue more debt or change your repayment habits.

In addition to direct savings from avoiding interest payments, you would also benefit from improved mental health avoiding 5th biggest stress according to WebMD. You would also benefit from better credit scores and lower borrowing costs for other types of credit, such as mortgages or car loans.

It literally pays to Not Buy Stuff You Cannot Afford. There is no drawback or catch, other than having to be patient and wait for your savings to accrue before making a purchase. Remember if you don't have the money, don't buy it.   

If you found this helpful and would like help budgeting or investing please email me at taylormckeecoaching@gmail.com