Podcast: Play in new window | Download
Why is profit so much more important than just saving money on a monthly payment? Saving on a monthly payment is short term thinking. Profit is long term thinking.
Your personal finance plan needs more than just buying at the cheapest price. Don’t fall into the minimum monthly payment trap. You’ll never get out. It’s why people stay in debt forever. If the payment fits their budget, they buy.
You have to look at the bigger picture. Total wealth impact is the big picture. How will this purchase affect my savings, 401k, etc. over the long term? What is the total amount of interest I’ll pay over the life of the loan?
Saving on a monthly payment is fine, if you apply the savings to an investment that will make you a profit. Next time a salesman says they can save you money, tell them you’re only interested in making a profit.
To Your Financial Freedom,
Greg Whitaker
Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email.
