You just bought a new house and you need new furniture to go with the decor and style, as well as a few functional pieces that you don’t have. Yet, you have looked around and aren’t sure if you can afford exactly what you need or want. Now is the time to make a plan of action. When buying furniture there are several ways you can pay for it.
For many people financing is the way to get new furnishings. Most of the time you don’t have to put any down payment which is a great offer. The financing consists of you making monthly payments until your furniture is paid off.
The keys to this plan are that you can get your furniture up front, and monthly payments are easier than dropping a lump sum of money, especially because you just spent a lot of money buying your new home. This is also a good way to build credit. The downside is that you have to be approved for financing and sometimes interest rates on financing furniture can be high.
Layaway is another great way to afford new furniture. If a furniture store offers a layaway plan, take the time to check out their plan. Most plans ask for a percentage upfront. This could be anywhere between 10% to even 50%. After you give them your down payment then you make monthly payments until your bill is paid in full.
A downside to this is that you cannot bring the furniture home until you finish paying on it. Another downside is if you don’t finish your payments you may lose your initial deposit. This doesn’t work if you need the furniture right away. If you are willing to wait though, this is a great budgeting plan that shouldn’t hurt your credit and will break up your major purchase into smaller easier amounts.
If you don’t like the idea of making a contract via layaway or financing for your furniture then another option is to save up on your own. This does take some time, but in the end, you fully own your furniture, and won’t screw up your credit line.
A good way to do this is open an account at a bank specifically with the purpose of saving for your furniture. Then decide on how much you want to save out of each paycheck to buy your new furniture. For example, each week you decide to put $50 into your new account for your furniture. Make a plan and stick to it.
This will help you afford furniture in your price range. In the end, it will be worth the wait and the results of you buying your own new furniture will be a great feeling. The biggest downfall of this is having to wait for your furniture.
Unless you truly can afford it, avoid credit cards or small loans from a bank. Interest rates are typically high on these. And why pay more than you need to on good furniture?
Finally, plan out what you can afford, decide on the most convenient payment method for you and stick to your guns. Once you decide what you can budget don’t sway from that. Buying furniture shouldn’t make you penniless. So choose a plan that works for you and your budget.