For the last past 5 years, I lived with my cousin. We shared an apartment and all our appliances. Since she was already working when I started, I was lucky that I did not have to buy a lot of things. She already had pots, a fridge, and over time she bought a washing machine that made life soo much easier.
One of the ways to rent smartly ( read it here) is to share with friends or family. That way, you are not forced to buy everything on your starting salary nor will need to incur the cost 100%. You can always share.
But at some point you will need to move and start somewhere. For me, my cousin will be moving in the next three months or so, I must make a plan to buy some new pots, a fridge and a washing machine. I do not have to get it all at once but I can start saving for it already.
There are several options:
- I can buy my things cash brand new, if i have the money. But at this stage, my savings are very low so this option is out of the picture. I worked out the cash cost will be roughly N$ 9 700.
- I can try buying second hand items. Most of my house furniture including my stove I bought second hand from a friend ( its a good way to save money), but I do not really feel comfortable buying electrical appliances second hand and since I am considering this for a long term, I would like it brand new ( maybe pots I can compromise).
- I can lay bye- This is an option available to customers where you pay for something overtime and the shop will only give it you when you have settled the full price. The only problem with this is that, it removes the flexibility of new sales item that may come up when you finally have the money. But it works.
- I could get it on account- but you know me, I am most likely to work out the cash price and compare to the credit price and start thinking what new business I could potentially start if I just saved the money.
- I could buy one by one in order of priority. Maybe a fridge and then a washing machine and then start replacing old pots. Since I still have some pots I can cook with.
- I could save up for it for three months such that by the time she moves, I have enough money to buy the items.
The thing is, buying furniture is one of the reason why people get in debt because they do not think through their decision. They look at the installment if they were to get it on credit and see if that will fit in their budget. But that should not be your only option. Take time to think and run it past a friend to help you with your decision.
I have gone with the last option of savings N$ 3 233 per month. This is because I have a bit of time, I have the capacity in my budget and I prefer that way.
How do you do your decision about similar situation?