Have you noticed how car commercials rarely advertise the actual price of the car? Instead, they highlight something much more digestible: a monthly payment of $599.
It’s a strategy that seems to work. Plenty of us are comfortable financing tens of thousands of dollars for a vehicle, sometimes an amount comparable to what could be a significant down payment on a house. Imagine having that same amount sitting in your bank account and deciding to spend it all at once. It’s a big decision! Now, when that total cost is broken down into a monthly payment, it can feel much easier to swallow.
I think we’ve collectively become incredibly good at making expensive things feel affordable.
And by “we,” I mean all of us: the consumers and the culture we’ve created that teaches us to focus on monthly payments rather than what it costs altogether.
When Affordable Doesn’t Actually Mean Affordable
There’s nothing inherently wrong with paying for something over time. In fact, it can sometimes be the smartest option. What’s concerning is how easily the payment can become the purchase in our minds. That monthly number becomes what we fixate on, rather than the actual cost.
The Payment Becomes the Price
A monthly payment seems feasible because we’re comparing it to our monthly income. A total price carries more weight because we’re comparing it to our savings, our goals, and everything else that money could represent.
That’s why the monthly payment can be psychologically powerful. It’s a lot easier to say, “I can fit another $300 into my budget” than it is to say, “I’m going to spend another $18,000.” Both statements describe the same purchase, but one feels like a workable budget decision while the other feels like a major financial commitment.
Brian and I have always tried to look at the bigger picture when it comes to spending. We don’t just ask whether we can technically afford something. We also think about what else we could do with that money and whether the purchase actually supports the life we’re trying to build together. That bigger-picture thinking means looking beyond the monthly payment and considering what the purchase will actually cost us over time.
The Total Cost Tells a Different Story
And, of course, the monthly payment is only one part of that picture. Interest can add significantly to the total cost, especially when a purchase is financed over several years. A lower monthly payment can also mean a longer commitment and more money paid over time.
And it’s worth remembering that paying in full can sometimes save you money. Some businesses offer a discount for upfront payment that isn’t available when you choose an installment plan.
So before focusing on whether you can afford the monthly payment, it’s worth looking at the total amount you’ll actually pay. A $500 payment may sound reasonable, but $500 a month for five years is $30,000. Would it be worth it to you?
Small Payments Can Add Up Quickly
There’s also the fact that monthly payments rarely exist on their own. There might be a car payment, a phone payment, a few subscriptions we barely use, a buy-now-pay-later plan, and all the other things we’ve decided are small enough to fit.
None of them necessarily feels daunting on its own. But add enough small recurring expenses together and suddenly a noticeable portion of our future income is already spoken for.
The issue is that our brains tend to process these payments one at a time, rather than as a whole. A $50 payment doesn’t sound like much. Neither does $75 or $100. But together, those payments can add up to hundreds of dollars each month. Over the course of a year, that can mean thousands.
Put the True Cost in Perspective
Once we start looking beyond the monthly payment, the purchase can look a little different. That doesn’t mean we’ll decide against it, of course, but it does give us a clearer picture of what we’re actually choosing. Before committing to another recurring payment, try putting the purchase into perspective:
- Look at the Total Cost
Don’t stop at the monthly cost. Add it all up! Seeing the full amount, including interest and fees, can make the true cost feel a lot more real. You might actually discover that you’d be paying less if you paid it all upfront. - Ask What Else That Money Can Do
Every dollar has an opportunity cost. Could that money go toward an investment, an emergency fund, a house project, or simply more flexibility in your budget? Thinking about what you’re giving up can change how you view the purchase. - Give Yourself a Cooling-Off Period
Easy payments can make a purchase feel like an easy decision. Give yourself some time before actually going through with it. A little distance can help you decide whether you really want it. - Make the Purchase Earn Its Place
I like to think of our spending as having to earn its place in our lives. If something is going to take up part of our future income, it should provide enough value to make that commitment worthwhile.
Ultimately, though, putting a purchase into perspective isn’t about finding reasons not to spend. It’s about making sure our spending reflects what actually matters to us.
Spend With Intention
Intentional spending asks us to understand our own priorities. When we commit to a purchase, we’re choosing not to use it somewhere else.
For Brian and me, the goal has never been to spend the least amount of money possible (although I pride myself on doing so every now and again!). The goal is to spend in ways that support the life we actually want to live. Sometimes that means spending more on something we genuinely value. Other times, it means walking away from something that seems affordable simply because it’s not worth the tradeoff.
We don’t need to outright reject easy payments or feel guilty about spending money. We simply need to recognize what we’re actually agreeing to, including the full amount, the tradeoff, and what that payment means for our future finances.
So, the next time something feels surprisingly affordable, take a second look. Is it actually affordable, or does the payment just make it feel that way?
