Never finance a depreciating asset (car, electronics, appliances, furniture) if avoidable. Save in advance instead. If financing is unavoidable, apply a hard rule: total monthly debt payments stay under 15% of take-home pay.
People repeatedly caught in endless payment cycles on depreciating items.
Identify upcoming large purchases: car, appliance, furniture, electronics.
Open a dedicated sinking fund for that specific item.
Save the monthly 'payment' you would have made — to yourself — until you can buy with cash.
If financing is truly unavoidable, ensure total monthly debt payments stay under 15% of take-home pay.