Your dilemma is simple, “What are you going to exchange in return for the new car”?
Simply put I was asking him to seriously consider what currently requires $560 of his money each month that for the next three years he was prepared to exchange? If he was happy to make the exchange then buy the car, if not then simply stick with the one he had until he was confident to change. He needed to honestly ask himself the following:
- Was he currently saving $560 a month and happy to exchange what those savings were earmarked for at a future date or the peace of mind having the ability to save at that rate currently gave him.
- If he wasn’t saving then the exchange would be something that already requires $560 each month and the exchange is for the next three years not just a week. Can he commit to that exchange for the term of the loan without regretting it at a later point?
He now understood there was more to this than he first thought. The decision to take on this commitment needed serious consideration, it wasn’t a decision he could leave to emotion or justification.
If you are reading this then next time you consider taking on a new loan, buy yourself a coffee first. Hopefully it will remind you too of the exchange process that will take place once you decide to commit to that payment and help you make a decision you won’t regret soon after.
It’s your money and important to remember you can’t spend it twice, the decision is simply one of asking yourself if you are prepared to exchange where you currently spend/allocate the money that will be required to gain what you consider “A great deal”.
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