Just because you have the money for something in your account—or the space in your budget to make the monthly payments—doesn’t necessarily mean that it’s a good idea to buy it.


The difference between “can” and “should,” aside from preventing possible dinosaur-related disasters, is key to setting up a financial plan that’s sustainable over the long run. As personal finance site Wealth Redesigned explains, your financial well being is determined largely by the habits you form. Rather than approaching a purchase or a financial decision from the perspective of whether or not you can, ask yourself if you should:

Making larger purchasing decisions with a buffer mindset can be tricky. It’s not a question of “can I afford it?” because if they wanted to, these people could probably write the check or line up the financing. It’s a question of “should I afford it?” What will taking that big vacation, upgrading to a nicer car or remodeling a bathroom do to the bigger financial picture?


By running your purchases through the filter of “should,” you can gain a better perspective on your overall finances. Sure, you could buy a new laptop with your tax refund even though your old one works okay, but you’d probably be a lot happier in the long run if you put that money towards your credit card debt.

Should I afford it? | Wealth Redesigned via Rockstar Finance