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BUDGETING FOR NEW FURNITURE

If you are looking into getting new furniture, you will be surprised how quickly these items will add up, especially if you are buying all new things. While you can get second hand furniture for much cheaper than new furniture, many people prefer to find new furniture that suits their specific tastes. Regardless of whether you choose to buy used or new, there are a few different ways to budget and buy your furniture.

Cash or Credit?

Many furniture superstores work on credit. What this means is that you can buy now and pay later. You will make repayments to the store (or the lending company that works with the store). In many instances you may even get 1 year interest free. While this is a good option for those living on a budget, it is just another monthly bill to add to your pile. Many renters prefer to save up for an item of furniture and then use cash money to buy it. That way they are not risking poor credit or problems down the road if they are unable to make the payment for any reason.

One of the ways to buy new furniture is to purchase a complete set in one hit. Many furniture superstores will offer a discount if you buy a 'nine piece set' or a 'twelve piece set' which may include a dining table, chairs, a sofa or two, a coffee table, a bed frame, two bedside tables and a vanity table. This is just an example of what may be included in the set. The good thing about doing this is that all of a sudden your bare house looks like a cozy home, as long as you keep the pets in your rental away from your new furniture. However, unless you already have a few grand saved up, you will be in the red for quite some time.

Another way to purchase furniture is to save up for one item at a time. This is the smartest way to buy furniture as you are not running into any debt. You can wait for certain items to go on sale and then buy them discounted. While it may take weeks, months, if not years, to completely furnish your home, you will be saving in the long run and do not have to worry about paying interest on your furniture.

Making a Furniture Budget

When it comes to budgeting for furniture the best way to do it is to put aside a certain amount of money each week. Go over your current earnings and spending and make a budget for everything, from your morning cup of coffee to your car repayments. Put aside the leftover money each week and save it for a few months. You may be surprised how quickly it adds up.

Another option you may want to consider is using a bank which allows you to make money on interest. If you have a large sum of money, look for a high interest savings account. Leave the money in the account for a certain period of time (1 year, let's say). You can make anywhere from 2 percent to 7 percent interest depending on the bank and how much money you have deposited. At the end of the term, you will have much more money to buy your furniture.

Budgeting for new furniture is all about finding a way to save your money. Shop around for the best deals on furniture and look for pieces that match your style. Whether you choose to work on credit or stick to cash, whether you choose to save a little each week or invest a large sum, this is entirely up to you.

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