Money Guy Show Should You Pay Cash or Finance for a Car?
May 6, 2024
Exploring whether to pay cash or finance for a car, prioritizing debt reduction before investing, strategies for analyzing financial health, importance of tracking net worth for wealth building
AI Snips
Chapters
Transcript
Episode notes
Pay Cash for Cars When Possible
- Paying cash for a car is ideal when financially feasible according to financial order of operations.
- Financing is only recommended if monthly investments exceed car payments and it is paid off like cash.
Avoid Liquidating Investments Hastily
- Consider the financial impact of liquidating investments before paying cash for a car.
- If withdrawing a large amount sets you back significantly, financing may be better until cash is saved.
Prioritize Goals for Financial Decisions
- Prioritize financial goals based on what matters most to you, like retirement, homeownership, or becoming debt-free.
- Assess and balance retirement contributions, debt repayment, and saving for big goals accordingly.