Friday Financial Fails: Using Payment Plans

2 Minute Read

You’ve probably heard Dave say, “Broke people ask, ‘How much per month?’ and rich people ask, ‘How much?’”

There’s actually a lot of truth in that statement. If you want to win with money, you need to take “payment plans” out of your vocabulary.

Successful people don’t finance their couches. Or their dining room tables. Or even their cars. If you have to put it on a payment plan, you can’t afford it.

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The problem with payment plans? They’re designed to keep you in debt as long as possible. Many people move from one new car to another new car, never paying the car off, always losing money on the sale, and they never even get close to getting out of debt.

That’s a terrible way to live.

What if, instead of using payment plans to fund our lifestyles, we actually used cash? Wait a minute—are we saying you should save up for stuff before you buy it? Yes, that’s exactly what we’re saying.

You know what happens when you stop using payment plans? You start owning stuff. The car isn’t a glorified rental—it’s actually yours. And if you ever sell it, you get to keep the money instead of handing it all over to the bank.

That’s why using cash is so much smarter than going on payment plans. If you want to stay out of debt and avoid financial fails in your life, then avoid payments at all costs!

If you haven’t already, commit to staying away from payment plans in 2014. Only buy stuff you can afford!

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