Much like I was fixated on the phrase “I deserve it” a few weeks back, I have now been noticing a new phrase, “Why wait?”. “Why wait?” has been popping up all over the place. Most notably it’s been mentioned in car dealership ads and furniture store ads. “Why wait?” they ask.

Why wait to buy that fancy new car you’ve been eyeballing? They have a real shiny one for you and a fantastic interest rate to boot. Why wait for that new living room set you’ve been dreaming about? They have hundreds to choose from and no payments or interest until 2010. That’s right! 2010! Doesn’t that just sound light years away? Why wait for all this cool stuff when you can have it right now! You could be driving that fancy car and sitting on your new couch right this very second!

I’ll tell you why you should wait, you can’t afford to buy it. If a low interest rate is appealing then I already know something about you. You can’t afford it. How do I know this? Because if your financing this stuff then you don’t have the cash to buy it. If you don’t have the cash, then you can’t afford it.

Let’s say you want to buy a couch that costs $1,000. You don’t have the money to pay for it with cash, and you don’t feel you should have to sit on that old futon your brother gave you. So you head down to the local furniture store, mediocre credit in hand.

The sales guy tells you how easy it will be to get that couch. Why should you wait, when you can have it right now! You couldn’t agree more! So you agree to buy the couch on credit. Your payments are only going to be $39.75 a month. Great. They don’t mention that you will be paying for this couch for 3 years, and at 24.99% interest. But who cares? You shouldn’t have to wait, you need it now!

Ok, so lets take a look at that loan and see why you should have waited. Besides taking on necessary debt you will end paying $431 in interest over the course of the 3 years. So the couch that should have cost you $1,000 ends up costing $1,432. That’s why you should wait.

But let’s say you decide to wait. How will you ever pay for that couch? Well, you’ve already agreed to pay $40 a month on the loan, so start with saving that. If you saved that every month and earned 3% interest you would reach your goal in 2 years. You would actually own your couch a full year earlier and save yourself over $400.

And that, my friend, is why you should wait.

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Pic credit: wizchickenonabun