Rethink Affordability: Choosing Purpose Over Payments

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In this episode, Brad emphasizes the danger of monthly payment thinking and provides practical advice on shifting focus to long-term financial goals. He introduces the key question that transformed his financial decisions: 'Should I even be buying this?' Brad also offers tips on setting financial goals, prioritizing peace over material possessions, and staying consistent. Don't miss the free resources available at Debt Dad to help you start your journey to financial freedom today!

Chapters

• 0:00 The Monthly Payment Trap
• 1:23 Changing the Question
• 2:52 The Car Payment Reality Check
• 4:07 Your Financial Filter
• 5:12 Creating Your 5-Year Vision
• 7:35 Breaking Free from Paycheck to Paycheck

Transcript

Brad Nelson: 0:00

Have you ever noticed how easy it is to convince yourself something's affordable just because you can make a monthly payment? That's exactly how I stayed broke for so many years, and it's really no surprise. Our entire society is built around monthly payments and short-term thinking. But here's the problem when you're focused on what you can afford today, you lose sight of where you can actually be tomorrow. And one simple question you guys flipped the entire script for me and I want to share that question with you here to hopefully help you do the same exact thing.

Brad Nelson: 0:38

Hey guys, I'm Brett Nelson, founder of Debt Free Dad. I paid off about $45,000 of debt. I've been debt free now for more than 12 years. I've also been fortunate to help thousands of other people save and pay off millions and millions of dollars here with the work that we do here at Debt Free Dad. Now, after listening to this episode, you guys, if you're ready to take things to the next level, you're ready to break free from living paycheck to paycheck, reduce financial stress, build your savings and finally pay off that debt for good. But maybe you're just not sure where to get started. Don't worry. We've created some incredible free resources here at Debt-Free Dad, and I'll be sharing some details about those later on in today's episode.

Brad Nelson: 1:15

Now, guys, for years I used to ask the same question every time I wanted something Can I afford the payment? I'm sure you do the same thing, right? Whether it be a car, yeah, I can swing a four, five, six $700 payment. By the way, the average car payment right now, you guys, is $750 per month as of 2025. Or if you want new furniture, 0% interest right, 90 days, same as cash, six months free financing, or maybe even they give you an entire year, no problem, you say right. Or maybe that vacation that you desperately just need to go on, like I did many years ago and guess what? We throw it on a credit card because we can afford that payment, and we'll figure it out later. Any of that sound familiar?

Brad Nelson: 1:57

See, the problem is that question of can I afford the payment. It kept me broke because I became buried by nothing but monthly payments on a bunch of things. I wasn't asking if I could afford the actual item. I was asking if I could squeeze another payment into an already tight budget. By the way, I use budget loosely because I didn't really have one. I didn't know what I was doing with my money.

Brad Nelson: 2:22

But then one day, as I started working on getting out of debt, it hit me. I asked a different question when I started to look at items to purchase and I started asking should I even be buying this thing in the first place? Does this thing align with where I'm going, with the financial goals that I have in my life? And that was a game changer, because when I stopped focusing on the payment and I started focusing on the purpose, everything shifted for me and guys. That's why here on this podcast, we are big on this whole wire purpose right, because once you can establish where you're going financially, it's easy to say no and ignore a lot of the things that keep a lot of people broke with mindless spending. And that's when I realized I was making almost all of my purchasing decisions based on if I could afford the monthly payments, not total costs, not long-term goals, not peace of mind. I was just chasing stuff and staying stuck.

Brad Nelson: 3:17

But let's take cars, for example. At one point I had a car payment over $500 a month and at that time that was a pretty high car payment and I convinced myself it was fine, I was a reliable car, I had a warranty, I had a low interest rate, yada, yada, yada right. But that payment, guys, it kept me from saving. That $500 payment kept me from investing or even building an emergency fund At any time. In my savings. I only had a few hundred dollars. But when I finally ditched that car and got rid of that payment and I bought myself a cash car, I instantly freed up over $500 a month, which comes out to over $6,000 a year. And, guys, that kind of money, that kind of money can help you build your first emergency fund. That kind of money can help you pay off other debt and free up payments.

Brad Nelson: 4:11

Right Now, again, I'm picking a car, because that's the biggest payment that I had. But go through your budget. Go through the things that you are paying for monthly. Are there things that you can ditch to free up money to start making better traction with your finances? This all started to change, all because I stopped asking can I afford the payment? And I started asking does this align with the life that I actually want to live?

Brad Nelson: 4:35

So here's your challenge today the next time you're about to buy something, especially if it comes with a monthly payment, you guys just pause and ask yourself should I even be buying this? Is it a need or is it a want? Is it going to help me move forward or keep me stuck? Would future you thank you or will you regret it? This one question is like a financial filter, so to speak. It can help you slow down, think clearly and make better choices with your money and your life.

Brad Nelson: 5:07

Also, guys, we just did an episode not too long ago about the 24-hour rule. So again, give your purchases time too. Wait 24 hours before you spend any money on something. That is like tearing at you like you've got to have it right. That 24 hour filter can also keep you from spending money that you didn't plan on spending, because that emotion will go away within that 24 hours and 99% of the stuff that you want you ain't can ever buy it. And look, if you've never really sat down and thought about your financial goals or your bigger purpose. You're not alone. Most people are honestly too busy to think ahead. Most people are busy just surviving, but that's exactly how you stay stuck in the paycheck to paycheck cycle.

Brad Nelson: 5:49

Guys, when I got on my journey of getting out of debt, I remember I was working a regular job, was working 50, 60 hours a week. My commute was one hour each way, so I had to get up early to get to work. Well, I started getting up even earlier to work on this stuff, to work on my life, where I was going. And, guys, believe it or not, I still have the notebook the first notebook I had and all the things that I wanted in my life and where I was wasn't where I wanted to be, and I drew up essentially what my ideal life would look like. And, guys, if I go back and look at that notebook, much of what I wrote in there has now become a reality. So let me give you a few quick tips to help you start figuring that out for your own life.

Brad Nelson: 6:32

Number one ask what do I want out of my life and what do I want it to look like in the next five years and I know five years can seem like holy smokes. That's like a big question. Right, you don't have to be perfect at this, just brain dump. Just start writing it down, and not just financially, but in general. Do you want to travel? Do you want to own a home? Maybe you want to own a different home, maybe you want to move to a different town. Maybe you want to quit a stressful job. Maybe you want to spend more time with your kids, your grandkids, your family. Get super specific Again. It doesn't always have to be financially related, but everything touches your finances, right, so make sure you're writing it down. Your goals should excite you, not just sound responsible. All right, so make sure they're exciting. Like this is what I really want, and by getting your finances in order, it's going to help you get there.

Brad Nelson: 7:22

Number two is break it down into some money milestones. So let's say, your dream is to take that family vacation every year without going into debt. That would be great, right? So let's just break it down. What is it going to cost you? When do you want to go? How much time do you have to save up? And then, hey, what can we do to free these things up so we can use more of our money to live the life that we want to live?

Brad Nelson: 8:02

Number three prioritize peace over stuff. Write this one down Peace is greater than payments. Now I get it. A new car might look good in the driveway, it might be fun to drive, but I got to tell you, guys, nothing feels better than knowing that you're financially secure, that you can sleep at night, that the last thing that you're doing when you wake up in the morning is worrying about money, debt and payments. So prioritize peace over stuff.

Brad Nelson: 8:31

Number four start small, but stay consistent. You don't need to have it all figured out today. That's what I said. You know I mentioned five years. You know five years. That's. That's a big question for a lot of us. It might overwhelm you. So again, just start small, figure it out a little at a time.

Brad Nelson: 8:46

All right, pick one goal. Maybe it's building your first emergency fund. Like I said, I had a couple hundred hours of my savings at one time, all the time, right, and that's why I was always going into debt. But that completely changed once I built my emergency fund. So if you're building your emergency fund as a goal for you, just commit to that one goal. Don't do it all at the same time and then think about, like, automatic transfers, side hustle money, selling stuff, whatever it takes, right. So pick one thing that you wanna work on and break it down into smaller size goals and start attacking it. To work on, and break it down into smaller size goals and start attacking it.

Brad Nelson: 9:18

And then, last but not least, is, like I said, write it down and revisit it regularly. There's a lot of people who do a good job like thinking about all the things that they want to do, and they may even go to the extent of writing it all down, which I think is great. It's actually been proven If you write your goals down, you're more likely to realize them and achieve them. But you also want to make sure you're getting the habit of revisiting these things. It's the same thing, kind of, with your budget A lot of people who are good at writing a budget, but then they don't ever look at it again or follow it, and then they get distracted by all the shiny objects that are out in the world, right, and they wonder why they can't stick to their budget. You got to revisit your plan. Keep it front and center of your life, because that should be your guide, right? That should be the thing that you are following Now.

Brad Nelson: 10:00

As I said, guys, if you are ready to break free from living paycheck to paycheck, you want to reduce financial stress. You want to build savings and finally pay off your debt for good. But again, maybe you're not sure where to get started Now. We shared some great tips here today, but we got even more. All right, simplify my money is sent to you each and every Sunday to your email. Simplify my money it's kind of like your step-by-step roadmap to better financial control. So you're actually going to learn easy to follow strategies to manage your money effectively stress-free money decisions that are going to help you simplify your financial life. With proven tips that actually work. You're going to gain the tools and the confidence to tackle your financial goals head on. You can sign up for Simplify my Money by clicking on the link at the top of the show notes. All right, guys, thanks for being with us here today's episode. We will see you guys next week.