Most people confuse the term “afford” by looking at the availability of funds in their bank account. This does not account for “pending” transactions, which can easily overdraw your account. The banks love people like you, if you do this. When properly managing your money in your B.I.E. (Budget-In-Excel), you should refer to cell D20 to see what you have at the end of every month after all expense obligations are completed:

d20_1

d20_2

d20_3

Notice how in cell D20, the monthly “carry-over amount” (which is intentionally avoided from calling savings, because if one is in debt then they cannot have “savings.”) is getting larger over a three month period. Therein lays your ability to actually “afford” something. Remember – you cannot “afford” something unless you actually KNOW that you can “afford” something after you type in your normal recurring expenses and weigh them against your anticipated income. Then and only then can you truly “afford” to envision a future purchase.

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