But I can afford the payments!

Great little article. In my search for a new home, I keep thinking, I can afford the payments, but I'd have to give up my 20% savings rate. And I REALLY LIKE saving 20% of my income each month. For me, if I can't afford the payment and my savings, I just can't bring myself to buy it!

'we can afford the payment' is a sure-fire sign someone can’t afford the payments. Marketers have won the battle of convincing us that we can afford things we can’t if we only have to pay for it every thirty days, rather than all at once.

http://frugaldad.com/2010/09/06/my-first-place-on-hgtv-house-poor/