Why Financing Depreciating Assets Keeps You Poor

Every retail finance model, from buy now pay later schemes to interest-free promotions, is designed to ensure you complete a transaction immediately. Taking on debt for assets that rapidly fall in value is disastrous for young people and experienced earners alike, creating a massive opportunity cost against building genuine wealth. This trap is equally common when people take out novated leases under the impression they are saving on tax. In reality, any perceived tax savings are quickly erased by the sharp depreciation of the vehicle. Whether purchasing a new car, a couch, or a television, avoiding finance on depreciating items and saving cash puts you in control. Paying cash not only keeps you free from debt, but it also gives you the power to negotiate a better purchase price upfront. General Advice Only. Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Robert Goudie is an Authorised Representative (No. 235974) of AFSL 495401.