An index to help you make better money decisions, 60 seconds each.
Big purchases decisions.
5 decisions documented in this category.
The car payment that hides the real cost
I bought my car based on the monthly payment I could afford. I never checked the total cost over the loan.
The dealer asked 'what monthly figure works for you?' I said $400. They gave me a five-year loan at a higher rate. The car cost me $8,000 more than the sticker price.
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Why 24-month furniture finance costs more
I needed a couch. The store offered 24-month financing. I took it without checking what saving for three months would do.
The monthly payment was $90. Saving $90 for three months would have produced $270. The couch was $1,800. The three months would have saved me $360 in finance charges over the 24 months.
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Why the max mortgage you can afford is not your max
The bank approved me for $750,000. I bought a house for $740,000.
The approval was the maximum I could borrow, not the amount I should have borrowed. The mortgage I chose drags every other goal I have.
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Why renovations come in 70 percent over budget
The renovation budget was $40,000. The final cost was $68,000.
Every increase felt small and reasonable. We were already doing the kitchen, we might as well do the floors. We had the floors done, we might as well do the doors.
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Why wedding budgets balloon 50 percent over plan
We set a wedding budget of $20,000. The final bill was $42,000.
Every 'this is once in a lifetime' decision added a few thousand. The 'once in a lifetime' frame is what doubled the bill.
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