Why “Can Buy” Isn’t “Can Afford”

This July, BrightDime is tackling “Money Moments that Matter.” These moments aren’t always obvious, but they’re the big financial decisions that direct you onto a path that’s tough to veer away from . We’ll explore some other key moments in the coming weeks, but today, we’re zeroing in on two that matter for a simple, crucial reason: the often overlooked gap between what you can afford and what you can buy.

For most of us, buying a home or a car are biggest expenditures we’ll ever make. And that means borrowing money; mortgages for houses, auto loans for cars. It’s natural to assume that the amount a lender offers is the amount you can afford. But that’s a dangerous assumption. Taking on a mortgage or car loan isn’t a one-off choice; it’s a commitment to monthly payments that stretch for years. Think of it less as a single decision, and more as a chance, every single month, for a very long time, to reaffirm a smart choice. For a house, that decision repeats for three decades; for a car, at least five years.