Buying Investment Pieces When You Can’t Afford Them

Buying Investment Pieces When You Can’t Afford Them

Very few people can afford to buy a house outright, with no mortgage.

So, if there’s a large purchase you want to buy, but you don’t have the money to hand, you shouldn’t be put off. As long as you can easily afford repayments, you shouldn’t worry about borrowing money to help you achieve your dream.

From a brand new car to a boat, there are ways to help you achieve what you want. However, if you just want more cash to spend on clothes and meals out, then you might want to reconsider.

These tips are only good for big, one off buys.

Deciding to borrow money

First off, create an honest personal budget. Remember to include everything: from the snacks you buy at work every day, to that coffee you buy on Sunday mornings.

A good way to know what you’re spending money on is to keep a diary and record everything. Sometimes, and now especially with contactless payments, it’s easy to just buy something without really realising what you’re doing.

Once you’ve done this, then you can see how much you’ve got left every month. Depending on how much you can spare, will determine what sort of loan or credit card you get.

Likewise, decide how long you want to spend paying it off. You might prefer to make bigger payments, but get it over and done with over the course of a year, or you might need to make small payments, but stretch it out for longer.

Once you know that you’ve got enough to meet payments every month, then you can look at borrowing.


Buying Investment Pieces When You Can’t Afford Them

There are many more loan providers out there now than ever before. So, even if your financial background isn’t as good as it could be, you shouldn’t write yourself off. You can get a quick loan in a matter of minutes, so you don’t need to worry about lengthy processes.

Likewise, you can shop around to find the deal that best suits you: deciding how much you want to pay back a month, how much interest you’ll be paying, and how long you’ll be borrowing it for.

Credit cards

Credit cards will work depending on what sort of purchase you’re making. If you’re spending a large amount, a loan might be better. But if it’s just larger than normal, then a credit card would do.

This article is a good read if you’re struggling to decide which to use. You should be careful that you’re only taking one out to buy the investment piece – don’t use it to treat yourself on shopping trips.

Shop around and speak to your bank for good advice, and try to get one with no interest rates, or ones that are very low.

Finance schemes

If you’re buying a new car or something from a company, you might be able to make use of their finance schemes. Normally you need to put down a deposit, and then decide how long you want to borrow the money for. It’s similar to getting a loan, but you’ll go directly through the retailer to get it.

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Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
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