Financing These Three Things Means You Are Losing Money

No money down! No payments for a year! Get it now, while it’s hot! Ah, yes; the lines that stores use when they want you to come in and buy their stuff, finance through them and take your money all the way to the bank. Friends, let’s be clear about something; if you want to finance a house, go for it. Be careful, though, about the other things you finance. Not only are many buyers highly unlikely to actually pay off these purchases fast enough so that interest does not accrue, you’re losing money on the things you buy almost the second you sign on the dotted line. So, what can you finance that you will likely never get your money back on? Let’s check it out – and promptly avoid these purchases without cash.

Cars

You know this, so why am I telling you this? Your best bet is to buy a used car that’s a model year old with a few miles on it. Someone else already graciously ate the depreciation on this one for you, and that’s what happens when you go this route. Otherwise, you’re taking a hit worth several thousand dollars.

Furniture

We love it and we use it, but it’s not worth that much money. The truth is that you’ll never get your money back on something like this, so financing it means you’re already overpaying and then overpaying some more. Don’t fall prey to this trap. Pay cash and save as much money as you possibly can.

Jewelry

Gentlemen, let’s not begin your marriage in debt. Save up, pay cash and then propose to her. You might think that jewelry increases in value over time, but it really does not. And unless it’s a major item, your lady is not likely to wear it all that often. The only jewelry my husband purchases me regularly is new charms for my Tiffany & Co. charm bracelet – but they’re not expensive. I always wear the same stuff, and many women are the same.

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