Like SUZE Orman says "Can I afford it" Thread

[MrsPete]

Here's mine


Should I buy it or just avoid the mall till it's sold out.

Usually when I see something I like at the mall I leave it behind for at least 2-3 days. Then if I really still want it I'll go back to buy it. Well I found this really nice coat that I am in love with but it's a little over $250.00. It can be worn with jeans and sneakers or dressed up. It's a classic style coat that I see myself wearing three years from now. BUT The price!! Here's the deal I have a 30% off coupon to the store and I made $70 for an extra job I did since seeing this coat.
So $75 off with the coupon and $70 off with the cash. Comes to just over $100 plus tax.

Should I or shouldn't I? I will have $150 in checking after paying off this credit card statement(not including the coat) but I'm getting paid again this Monday(900) and have paid all the bills for this month. And Like Suze asks I have 9 months expenses saved and no credit card debt.

Can I afford it?

Several thoughts:

It sounds like the coat is a good value with the coupon and its classic style, but what you haven't addressed is DO YOU NEED IT? Do you live in a cold climate where you'll wear the coat for several months each year, or do you live in a warmer climate where it'll recieve only a month or two of use each year? Do you already have a coat from previous winters, or must you buy a coat of some sort before cold weather gets here?

You're totally rationalizing the purchase by adding in the $70 from the extra job. The coat is $170 -- don't fool yourself into saying it's really $100.

It's admirable that you have hefty emergency savings, but you have so little in your checking account right now. After your paycheck comes in on Monday, you're looking at spending 16% of all your liquid assets on one item of clothing.

And there's another big question that you haven't addressed: With only about $1000 in your checking account on Monday, what kind of necessities are coming up for you? If you live at home with your parents and have few expenses, you can probably afford the coat. If you live on your own and are going to need to buy groceries, etc., then a $170 coat is more than you can afford.

Finally, here's something I do sometimes: If I'm uncertain about whether to buy an item of clothing (especially if it's on sale, or if I fear my size'll be gone), I'll buy it and keep it in the bag with the receipt for a couple weeks. If, after a couple weeks, I still love it, then I'll take the tags off and keep it. If I look at it and find that it's not as great as I thought originally, I return it. You could easily do this because it'll be weeks (maybe months, depending upon where you live) 'til cold weather sets in and you need the coat.

 

[pjlla]

MHO... if you have to ask, you can't really afford it..................P

 

[disneyofcourse]

To answer the Do I need it segment
Not really, I have a down coat for the winter season, many smaller jackets for mild seasons and a going out fancy coat. So, really I don't need it. Will it make me happy for the next three years at least unless something horrible happens to it? Yes! I travel up North for a few weeks out of the year and the new coat would be heavily used in that area and for at least 3 months in my area.

The $70 is extra money for an extra job I did on my off to help off set the price of the coat. It was meant for the coat and that's why I did the extra work. To me it comes off the total price of the coat so that I only put $100 on the card. Personally, I treat it as a discount.

Yes, I do have very little in checking. Only because I have several savings accounts. One with my emergency fund, one a vacation fund, one a general fund where all the bill money goes. I hardly ever keep more than $400 in checking because this way I don't spend the money that I don't have available that moment. Yes, I will have 1000 in the account come Monday with no bills to pay until the end of the month and three paychecks later. My mortgage is also paid off for the next three months and I already have money set aside for the 1st of the month to pay it again. My credit card won't be due until October since this upcoming months bill is already paid. So I figured I'd put it on my card(the coat). This all makes me think of how I'm not at all like my parents. Money issues was one reason I moved out the year I became a Senior in H.S. 8/9 Years later and I'm still better off.

The way I look at it is why live life not being able to give yourself a gift once in a while. Even if you don't need it. Now if I had 100 coats now that's a different story! That's an addiction


This was good though-It made me think "Do I really want this thing after all this?"

Several thoughts:

It sounds like the coat is a good value with the coupon and its classic style, but what you haven't addressed is DO YOU NEED IT? Do you live in a cold climate where you'll wear the coat for several months each year, or do you live in a warmer climate where it'll recieve only a month or two of use each year? Do you already have a coat from previous winters, or must you buy a coat of some sort before cold weather gets here?

You're totally rationalizing the purchase by adding in the $70 from the extra job. The coat is $170 -- don't fool yourself into saying it's really $100.

It's admirable that you have hefty emergency savings, but you have so little in your checking account right now. After your paycheck comes in on Monday, you're looking at spending 16% of all your liquid assets on one item of clothing.

And there's another big question that you haven't addressed: With only about $1000 in your checking account on Monday, what kind of necessities are coming up for you? If you live at home with your parents and have few expenses, you can probably afford the coat. If you live on your own and are going to need to buy groceries, etc., then a $170 coat is more than you can afford.

Finally, here's something I do sometimes: If I'm uncertain about whether to buy an item of clothing (especially if it's on sale, or if I fear my size'll be gone), I'll buy it and keep it in the bag with the receipt for a couple weeks. If, after a couple weeks, I still love it, then I'll take the tags off and keep it. If I look at it and find that it's not as great as I thought originally, I return it. You could easily do this because it'll be weeks (maybe months, depending upon where you live) 'til cold weather sets in and you need the coat.

 

[arminnie]

To answer the Do I need it segment
Not really, I have a down coat for the winter season, many smaller jackets for mild seasons and a going out fancy coat. So, really I don't need it. Will it make me happy for the next three years at least unless something horrible happens to it? Yes! I travel up North for a few weeks out of the year and the new coat would be heavily used in that area and for at least 3 months in my area.

Well to me that sounds like there is a use for the coat. My problem is that I want to buy so many cute, cute things - but in reality I have several cuter things at home so end up never wearing the new thing.

I'll give an example of my 75th anniversary Mickey jacket. SO CUTE!!!! I loved it and probably owned it for 5 years. But it is rarely cool enough to need it in Florida -plus it was VERY heavy to carry around if you were not wearing it. I'm in my 60s so this wasn't something that fit into my normal life. I gave it to my sister to sell on ebay once I realized that I hadn't worn it in a couple of years.

If you are going to buy something that you will not wear because other choices are better most of the time - then don't buy it.

 

[Swimalie]

MHO... if you have to ask, you can't really afford it..................P

I have a tendency to not agree here. If you have to ask, you are doing the right thing and thinking before acting and being frugal. Too many people in this country buy, buy buy and charge, charge, charge without having the money in their bank before hand and then wonder how they got in the predicament they are in. She was being smart by thinking and questioning the purchase.

Sorry it was out in your size. I hope they get it back in soon.

 

[MrsPete]

Well to me that sounds like there is a use for the coat. My problem is that I want to buy so many cute, cute things - but in reality I have several cuter things at home so end up never wearing the new thing.

I'll give an example of my 75th anniversary Mickey jacket. SO CUTE!!!! I loved it and probably owned it for 5 years. But it is rarely cool enough to need it in Florida -plus it was VERY heavy to carry around if you were not wearing it. I'm in my 60s so this wasn't something that fit into my normal life. I gave it to my sister to sell on ebay once I realized that I hadn't worn it in a couple of years.

If you are going to buy something that you will not wear because other choices are better most of the time - then don't buy it.

Yeah, I'd never buy an expensive coat myself because I live in the Carolinas! What I call my winter coat is what other people call their fall jacket. Our typical winter weather is around 50 degrees (with brief visits to the high 40s and mid-60s), and that's really only 2-3 months a year. We get snow for 2-3 days every 2nd or 3rd year. An expensive coat would be a foolish purchase for me!

I try to consider how much wear an item'll get. For example, I'll spend to get comfortable, good quality work pants or shoes because I know I'll wear them over and over for a couple years 'til they wear out.

 

[bored]

MHO... if you have to ask, you can't really afford it..................P

second this!