Financial Advice

How to Afford Everything that you Want

It can sometimes be annoying that everyone else seems to be able to afford to buy all of the things that they want but you cannot. You might think that there is some big secret to being able to afford everything that you want without having to earn more money. There are actually a few reasons that this might be the case and a few things that you can do to be able to afford more.

Secrets of the rich

You may feel that rich people seem to have lots of things and always have everything that they want. However, this is not quite what it seems. Some people that have a lot of money have money because they do not spend lots of money. You will find that many rich people are the best at bargain hunting and will only buy things if they are completely necessary. They will also pay more for quality items that t last longer which means that they do not have to keep replacing items all of the time. It may seem like they have it easy, get money easily and spend it a lot, but actually it may very well be that they work very hard with their money and due to being frugal they have money to spend but not necessarily so many things.

Why people have more

You may look at people on a similar income level to you and wonder how they manage to have more than you. It may be that they are always going on holiday or buying the latest things. There may be a number of reasons for this. It could be that they are being given money of things form other family members. Some families like to treat other members to lots of things and this could be the case here. It could also be that they borrow a lot of money to pay for all of the things. If this is the case then they could get to a stage where they will no longer be able to afford their debts and suddenly no longer be able to have all of these things and in fact struggle to make all of the repayments.

Borrowing and saving

So therefore some people may be able to afford everything that they want because they borrow money in order to do so. However, some people may save hard for everything that they want. It may be that they want less and therefore it is easier for them to have what they want. We should take note that we might want a lot of things but this may be more to do with clever marketing and pressure for others rather than an actual need to have things. It is worth thinking hard about what we really want and whether it is worth the hard work that we have to put in the earn the money that is paying for it. Sometimes it is worth thinking about the things we buy in terms of how many hours work we have to put in in order to earn it. It can be a great idea to put some money into savings each time you get paid. Then you can build up a pot of money that you can use to buy the things that you want. You may then feel better about being able to have the things that you really want.

Earning more

One solution to being able to buy more things is to earn more money unless you want to take out a loan. This is obvious but it is something that many people just feel is not something they ca do. It might be that they are in a job where they are being paid a high wage for what they do and therefore feel that is it. However, there are many ways to earn money outside of your job. You could monetise your hobbies, do freelance work evening and weekends, sell things that you own and no longer want or even start a business. There are lots of opportunities if you are prepared to put in the time and effort to do so. It is worth doing a lot of research first though to find out whether your employer approved of you doing this sort of thing and then to consider whether you have the time to be fully committed to something like this. Consider the effort and energy that it will take and whether you think that it is worth it when you may normally do other things in your spare time. Consider what you will be using the extra money for and whether you feel that it will really be worth all of that effort. If it is something that you can enjoy then that will be very different compared to doing something which is not any fun for you.

Credit Cards

Is it Worth Using a Credit Card for Small Purchases?

Many of us have credit cards and they can be extremely useful. When used efficiently they can give you interest free credit for a period of time until you repay the full balance owed each month. However, some people use them to buy things and then delay paying for them for a long period of time while the interest on the card keeps being charged. This can be an expensive way to buy things due to the cost of the card. It is worth thinking about when to use them and what for in the context of how you use the card. If you are spending small or large amounts, it could have an influence on whether you should use the card.

If you pay it all off

If you pay the card off in full each month then whether you use it for a few things or lots of things will not matter. As long as you are confident that you will be able to repay it all when you need to then it will be fine to use it for anything that you want. Some people make all of their purchases on a card and then pay it all back in full by direct debit each month. This can be convenient and if you have a cash back credit card it can also give you the opportunity to earn more cash back. Unless you think that there is a risk that you might not be able to repay the card in full this particular month, then it is well worth using one.

If you never pay it off

if you do not pay the card back but keep spending on it and just repay the minimum then it is best to use it as little as possible. This is because everything you buy with it will be costing you more money as you will paying for the interest each month. Therefore whether you want to pay for large or small things it is better to avoid using your card if you can. Smaller amounts do add up and so if you think that you will not be paying back the card then it is better to pay those with debit cards or cash to avoid accumulating more debt. It is easy to think that a few small things will not make a big difference, but everything that you use the card for will make some difference.

If you sometimes pay it off

Some people pay off their credit cards in full at times but other times pay off part of it or just the minimum. This is when it can be a trickier decision. If you think that you will be paying it off in full then you can spend all you like on it, but if you are not sure then it is better not to take so many risks with using the card and if you can afford smaller purchases without using the card, then this is the best thing to do. Otherwise you will risk having to pay out more money form the items than the purchase price and they may just not be worth it.

If making online purchases

Online purchasing has a risk to it. Although most online sites have encryption, a credit card offers extra security compared with a debit card. This means that it is probably better to use a credit card for online purchases regardless of how much you are spending. Credit cards have insurance which will pay out if you do not get the items that you ordered or if they are not as described.

If in an independent shop

You may think that small purchases should not be paid for using a credit card but most shops do not mind if you use one. This is because they are happy to serve you regardless. Some smaller and independent shops may request that you only use a credit card if you spend over a certain amount of money. This is because there is a processing fee for using a credit card which they will have to pay and so they may want to make sure that they can cover this cost in their profits and so only accept cards for higher payments. So whether you use a card should not be based so much on how much you are spending but on whether the shop accepts cards for small amounts or not.

Convenience

It can be a lot more convenient using a credit card than trying to find the cash to make a payment. It also allows you to wait until you pay for items so you get some time before you have to find the money to actually pay. It can also be a lot easier to carry a card with you when you are out and about rather than having to think about having enough cash.