TonyaG83
Mouseketeer
- Joined
- Jan 28, 2017
I agree that this whole episode didn't sit well with me. I truly do believe that the key word in the term "Personal Finance" is "Personal". There is no right way, and no wrong way to do things. An adult making a large financial decision SHOULD have a good understanding of the pros/cons that come along with it, and how it affects them personally. However, we all know that the majority of people make emotional decisions without truly understanding the consequences. This is where I believe things can get predatory.
I agree with your statement and your outline above. The #1 point is that it is personal and what makes sense for some, doesn’t for others.
Sometimes financing, if done correctly, is a good option. If you don’t have the money or never expect to amass it, financing via a high interest lender isn’t the best idea. Anyone who extends themselves financially should have a good grasp of what they are laying out and what they will receive in return.
I finance because I’m extremely aware of my personal finances, exposure, and know how to ‘play’ with my money. I can leverage a small fraction of what I have to get 100% of what I want. I could either take a chunk of liquid cash and pay for a contract outright, or I could pay a portion of it, invest the rest into an aggressive fund, and then use the dividends to pay for not only my interest on the loan, but a small fraction of the principle. I’m also crossing my fingers for the currency gap to lessen, but that would just be a bonus.