Paying For An Item Out-Right

PAYING FOR AN ITEM OUT-RIGHT

Let’s talk about saving for an item.  Say you see a television that your family just has to have, or whatever the big item on your home want list is at the time.  If you are like most of us, it can vary with the time of year and your mood for shopping. Either way you have a few choices here.

1.  You could buy it on credit and pay interest to the credit card company.  This will end up having you pay around two times the amount of the television's original purchase price when you are finished.  Now you have paid more and are in debt again, not a good idea.  Always try to avoid this choice.

2.  I suggest you shop around for the best price on the television.  Check your favorite department store and their website.  The prices are not always the same.

3.  After you have found the television you like for a price you can handle, then how do you get the money?  Say the television is $500.00 after sales tax.  Divide that by, let’s say, five months.
You start putting away $100.00 a month in an envelope or savings account until you have all the money put away.  Then you get the television.  This way you have paid only the price of the television with no interest added.  You can get the television without an ounce of guilt.  That's always a good feeling.

I've done this and when it came time to get the item, I've got lucky and found the same item on sale.  Now that's my kind of savings!

Many people use the rent-to-own places.  I have found that you again pay twice as much or more for an item as you would have if you bought it out-right.  This is a great deal for them, but not such a great deal for you.