Affordability Index Calculator
/ Affordability Index Spending Decision Process
What am I buying? What's my objective?
Why am I buying this?
(Don't assume you need an item being replaced. Re-justify it. Define the need generically: you don't need a car, you need transport, which the public system could supply.)
In the Budget
This is a
spending decision process.
Decide if the amount is in your budget or can be accommodated therein without overspending the total budget. If it's in, select "0." Otherwise, it's "Not Budgeted".
If you will pay by credit card, select "Unchanged" only if you
to pay the full credit card balance when it is due.
Is there an alternative to do the
Not an alternative objective, but an alternative to achieve the same objective. The
assumes you identified the need to do the objective already. This question helps to decide if you can afford to carry out this need.
Is this item you plan to buy
for the stated objective. If you aim to "provide transport" is it necessary to buy a top of the line Mercedes, versus a more economical car? However, beware, you do not swing the other way and buy a car that will need continuing maintemance.
Is this the most effective use of resources now?
Seek to know God's will for you in this decision.
Even if you scored "0" for each item above consider this:
If you used these funds now, would it prevent you from doing a different objective later?
If the total of the five selected items is less than 6, you
If the total of the five selected items is "6" or greater, you
this. But, this is merely an initial guide, go to God and let Him guide you.
Affordable Today Is Subjective
Affordable Items Excluding Affordable House
Affordablity and Debt Free Lifestyle
Who Decides Affordability
What Happens If You Must Give Up Your Unaffordable Home