What is Beasthood

Beasthood Incorporated is something I started for determined individuals who know the difference between Reasons & Excuses. Things in life will hit you at the most unexpected times and what I've noticed is that lack of Preparation is the reason we take so long to get back on track. Therefore, your biggest enemy... is You. You can now begin to sit there and think to yourself, "This negro don't know me" and come up with a billion and one EXCUSES as to why you aren't at least on the path of where you want to be, OR... you can name the very few REASONS why and then formulate a plan to overcome them. 
Nothing can Stop You, Except You... Like It, Learn It, Live It

Friday, June 24, 2011

Whats the Difference? Being Able to: Buy vs Afford

 
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As a finance major in college I found out how to tell the difference verbally in what I always knew instinctively; Its what's called the "Real Cost" of an item. Too often we look to the Price tag of an item and the amount we have in the bank account and make the determination of buying something based solely off that which only leads to uncontrollable debt, overdrafts and inordinate late payment/reconnection fees. So simply put here's the difference:
 
 
 
 




Scenario 1: You are about to purchase a used car and have saved up $3,000.

In the Able to Buy part of decision making you may start looking at a nice $2,800 Luxury vehicle with low miles in GREAT condition. Sitting in a luxury vehicle will definitely be an ego boost and you know its pretty reliable so it SEEMS like a good buy for you.

But you have to ask if you can actually afford it. What inevitable costs will be bound with the Car that you have not accounted for in the immediate and long term? Is there Sales Tax? How much will you have to pay for car registration? Do you have Car Insurance? How much of a deposit will need to be paid on the car before it can even be registered? How much will insurance be a month and do you have enough in your personal budget to account for it? How much does regular maintenance for the vehicle cost? When will it need to be done again?




Scenario 2: You saved up $300 and want to purchase a new Cell phone and deciding which phone and service you are going to go with.

You might decide you want the latest and greatest phone with unlimited plan and have enough to buy it but again you need to know if you can afford it, not only today, but the rest of the contract term you are signing. Have you checked How much the phone cost upon approval with Tax? Is there going to be a deposit? How much can you afford a month on a phone bill? How much is a carrying case and any other essential accessories you may need?




Scenario 3: You see that your favorite designer is/has released a new shoe, accessory, article of clothing that is unique and a Must have for you.

Now I KNOW yall have all seen this before: a cocky "fashionable" person is wearing some $300 Belt, a pair of $1,000 shoes, $500 purse and/or some gaudy chain/earrings flooding with diamonds but rocking a $5 white t-shirt, some Old Navy $1 flip flops or Flee Market Jordan's and cheap Dingy jeans/shorts yet bragging about their ensemble... word? Witcha Broke Self. If they could’ve afforded it then there would be no need to brag because it would be normal and your entire wardrobe would be of an equivalent nature. See the difference now?



Once you calculate the "Real Cost" of the items you are purchasing you may realize that the thing you can buy is something you actually can't afford to keep. There's nothing worse than buying a new car, phone device, clothing etc. that you broke the bank to get and can't even utilize because there's something else you need to make it look or work proper. Then to make matters worse some over extend themselves to do so and sacrifice something they need for something they want and end up in a cycle of "robbing Peter to pay Paul". Don't fall victim to the approval you seek from others with material things.

Able to Buy vs. Able to Afford

Don’t just jump from A to B, make sure you cover A to A.



understood[1]


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