Are you going to finance your next purchase or pay cash? Finley Alexander Wealth Management says everything we buy is financed, one way or another. The choice is either paying a third party for the benefit of using their money (interest) or losing the opportunity cost of your dollars by giving them away.
It's important to remember that once the money is out of your pocket, it’s gone forever. For example, if you make an extra mortgage payment one month, you can't ask the bank to return it to you if your car breaks down. If you want to borrow it back, you have to ask permission and get approval.
If you're weighing out the plusses and minuses of financing versus cash, you can consult Finley Alexander Wealth Management here.
