The True Cost of Paying Cash
It’s always best to pay for major purchases with CASH… right!?
Not so fast! Don’t forget to measure your opportunity cost. (That’s one of our 7 Principle of Prosperity™, which you can learn about with our Prosperity Accelerator Pack.)
As Todd illustrates in this video, using the cash you’ve saved for major purchases takes a BIG dent out of your future assets! You’ll end up ahead if you can keep saving steadily, and make car payments on the side. Too many people pay off consumer debt just to spend the difference.
Remember that there is a difference between an interest payment and an interest cost. In the video, Todd quotes Nelson Nash, author of Becoming Your Own Banker (who was in the audience). “You finance everything you buy. You either pay interest to someone else or you give up interest you could have earned,” says Nelson in his book, Becoming Your Own Banker.
Are you doing the right things with your money?
Have questions about your financial strategy? Learn how you can work with us. You can reach out to us by email at welcome@prosperitythinkers.com, or contact Jill (jill@prosperitythinkers.com or (877) 889-3981 ext. 120) to schedule a complimentary consultation.
Disclosure: Our content is meant for educational purposes only. While it’s our goal to help you learn about building a life of prosperity, we do not intend to provide financial advice. Please consult your financial, tax or legal advisor before making any investment or financial decisions.