Author: Rich Brott

Financing Your Vehicle vs. Paying Cash – 2

Let’s take a look at the difference between the borrower and the lender in purchasing just one moderately priced vehicle. Given a very common loan repayment schedule of six years, a huge gap occurs between the two situations. Here are the two choices: Making vehicle loan payments Taking that very same payment and investing it […]

Financing Your Vehicle vs. Paying Cash – 3

Continuing from my previous blog…. Both persons have made the very same monthly payment. However, the investor (the one who does not borrow) makes no more payments, but continues to let the accumulation of his or her six-year payments grow in the marketplace, gaining return upon compound return at the very same rate. In just […]

Financing Your Vehicle vs. Paying Cash – 5

Vehicle Deal Tactics Why are you encouraged to use credit instead of paying with cash? Two reasons are clear to me. If you pay cash, you are likely to be more careful in your purchase. You may not make the purchase at all. You may delay the purchase until you have enough cash. You may […]

Paying With Cash – 1

Paying cash for a purchase is not generally promoted in our society. In many cases, it is outright discouraged. Why pay cash when you can lease the item? Why pay cash when you can enjoy low-interest financing? Why pay cash when you could be building your personal credit rating? Why pay cash? – you may […]

Paying With Cash – 2

Many people, even so-called consultants, will tell you that there is “good debt” and “bad debt.” Wrong! Please don’t buy into the “good debt” / “bad debt” discourse. ALL debt is bad! Yes, at times we are swayed into a purchase because we don’t have the cash, but that does not make the debt good! […]

Paying With Cash – 3

Some go into debt for so-called investment purposes. They are buying second homes, seaside properties, even speculating in commercial development or in the house rental market. People have no problem borrowing the money and joyfully exclaim that they are not using their own money, rather “someone else’s” money. This is a volatile place to put […]

Paying With Cash – 4

Corporate Debt Coming from the corporate world, I can tell you of faulty thinking firsthand. During the boom and subsequent bust of the 90s, a common practice was to make large purchases via leasing contracts. Virtually everything was leased. Fleets of trucks, manufacturing equipment, buildings, and so on were all leased instead of purchased outright. […]

Paying With Cash – 5

Corporate “Debt-Free” One of the most successful companies ever to grace planet Earth completely debt free? If debt is so good and provides so much so-called tax relief, why is the company that produced the richest man in the world debt free? Of course, I am talking about Microsoft, which has no debt and more […]