• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

Yes, You Can Afford It!

By Tex Freitag

Do you ever ask yourself, when considering a major purchase: “Can I afford that?” It’s a relevant question in an era when inflation is taking its toll on household income and people are finding it harder to get good jobs. However, the good news is that most working people can afford life’s necessities and luxuries as long as they plan for the purchases. That means that, even in a terrible economy, if you follow the secrets for financial success, you can probably afford a house, a college education, a collectible car, your own business, a backyard pool, a private sauna, and other trappings of the good life.

It’s all about planning, saving, and being patient.

The other piece of the puzzle is working on your credit scores by paying bills on time and keeping credit use at 20% or lower. Want to know whether you have room in your budget for some of the finer things in life? Then review your budget; you might just be surprised at what people who diligently manage their finances really can afford.

House

Once upon a time, more than a generation ago, purchasing a home was a tough process. Not only did most buyers need at least 20% of the purchase price as a down payment, but they also had to have excellent credit, be employed, and earn more than average income. Nowadays, even the credit-challenged can get home loans. Likewise, self-employed people and those with low-to-moderate incomes can win mortgage loan approval in most cases. If you have any doubts about your ability to buy a house, speak with a licensed realtor and see where you stand. Experts can often show you how to clean up your credit and qualify for a mortgage within six months.

College with Scholarships

Few college-bound students can afford the high cost of education these days. Many attend school and pay for it with family savings or by taking out costly loans. Fortunately, you can pay for some or all of your education with scholarships. The money doesn’t have to be repaid. To apply, you only need to fill out a short application. Using services like Going Merry college scholarships to pay for tuition makes good sense. It’s best to first find out which ones you qualify for and then use an automated system to apply for multiple opportunities at once.

Collectible Car

People are often shocked when they realize that most collectible vehicles cost less than new ones. If you’re a car buff and enjoy working on older models, consider shopping for fixer-upper classics and using your own skills to renovate them. After that, you can either keep the classic as a second car or sell it for a profit and start the process all over again. Car hobbyists love to flip collectible vehicles this way. When they come across one that’s a real gem, they often choose to keep it for themselves. As for the rest, they resell them and earn a little extra cash on the side.

Your Own Business

Starting a business can cost a little or a lot. Many home-based companies come with few initial expenses other than a possible computer upgrade, some office furniture, and advertising costs. It’s important to decide what you want to do and explore startup costs before committing to a line of action. E-commerce stores, tax prep businesses, and tutoring companies are all very low-cost operations and are ideal choices for home-based workers.

Private Sauna

If you love to luxuriate in a dry heat sauna to melt away the stress and tensions of the workday, you won’t have to hire contractors to add a special room to your home. Instead, consider purchasing a stand-alone, DIY kit that comes with everything you need to assemble a one-room sauna and place it anywhere you wish.

Photo Credit: stock photo

May 20, 2022

Comments

  1. 1

    bill says

    “It’s all about planning, saving, and being patient.”

    If people would just learn those great truths, they’d be so much better off, and happier too.

    Good stuff in this article.

The Question of the Week:

Did you buy any fireworks to celebrate Independence Day this year?

View Results

Loading ... Loading ...

Recent Posts

  • How to Retire Five Years Earlier Than You May Think You Can
  • 11 Dollar Store Bargains You’d Be Crazy to Buy Anywhere Else
  • What to Look for When Purchasing a Medical Alert System
  • What Everyone Should Know Before Depositing Their Money In a Bank
  • Black Coffee: Born on the 4th of July
  • How To Start Investing In Cryptocurrencies
  • Grandfather Says: The Travails of Working with Stone
  • 5 Expert Tips for Saving Money with a Credit Card
  • How to Implement Strategic Planning Processes
  • Is It Better to Borrow From Your 401k or Take an Early Withdrawal?

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. The 6 Most Valuable Grocery Store Products
  2. 2. Series I Savings Bonds Are Now Paying 9.62%; Here Are Their Pros & Cons
  3. 3. 25 Examples of Shrinkflation That No Longer Fool Consumers
  4. 4. 7 Big Reasons Why a Roth IRA Isn’t the Best Way to Save for Retirement
  5. 5. 3 Ways That Great Sleep Helps You Get Richer
  6. 6. What’s the Fastest Way to Pay Down Your Mortgage Early?
  7. 7. How to Save Money on Dental Care So You Won’t Go Broke at the Dentist
  8. 8. Historical Gold & Silver Benchmarks for Wages and Commodity Prices
  9. 9. Tip Inflation: We’ve Got Nobody to Blame But Ourselves
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2022 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2022