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Emperor Cross

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Kaka said:
Financing upon financing - particularly of assets that go down in value such as cars and in this case a laptop - is what brings most people to financial ruin. Why would you pay interest on an asset that goes down in value on top of that?
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Maybe because you might need it immediately and don’t have the resources to buy it atm
 
Gambit

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Kaka said:
Financing upon financing - particularly of assets that go down in value such as cars and in this case a laptop - is what brings most people to financial ruin. Why would you pay interest on an asset that goes down in value on top of that?
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I agree but many people don't have access to such and their best option is to loan the said item payable in terms.

My first laptop was paid in 12 months and I still use it although its value has depreciated in years. And since I have been using that for my wfh setup, income has already returned dozens fold.
 
Kaka

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Landayan said:
I agree but many people don't have access to such and their best option is to loan the said item payable in terms.

My first laptop was paid in 12 months and I still use it although its value has depreciated in years. And since I have been using that for my wfh setup, income has already returned dozens fold.
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No, the best option is to not buy it then, unless it's needed for generating income. So if the person plans to use the laptop to immediately start working and generating income, the the interest payments are worth it.

Otherwise, the laptop is a luxury and should not be purchased if you can't afford it. Especially if you have other things such as a tablet.
 
Guren

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I financed my first car couldn't afford one otherwise. Such things are on a case by cases basis imo. But I too generally tend to avoid buying things through financing.
 
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I always finance everythin I posses. Currently have 3 real estates and the capital already appreciate thrice. Good investment. But before, I was not aware in these schemes and got bankrupt, so I get where Kaka is coming from. Without those mistakes in the past, I would've not been able to secure assets that generate income today.

I never invested in auto tho. Don't need it. Yet.

I also loan my business capital during the pandemic to sell face masks. I didn't feel the interest rate. It's only 1% per month but I earned a lot and used some to pay off some of the mortgage.
 
Kaka

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Larsi said:
Of course it's better to buy things instead of finance them, but as long as they pay it off quicker than the thing lasts, what's the problem? Let people enjoy things.
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If paying things off was as easy as you say, you wouldn't have millions upon millions of people in insane credit card debt.

Also, even if you paid it off before the thing broke down, that doesn't mean you didn't pay interest.

Landayan said:
I always finance everythin I posses. Currently have 3 real estates and the capital already appreciate thrice. Good investment. But before, I was not aware in these schemes and got bankrupt, so I get where Kaka is coming from. Without those mistakes in the past, I would've not been able to secure assets that generate income today.

I never invested in auto tho. Don't need it. Yet.

I also loan my business capital during the pandemic to sell face masks. I didn't feel the interest rate. It's only 1% per month but I earned a lot and used some to pay off some of the mortgage.
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You're talking about leveraging money for income or capital generating assets...

Much different from financing a depreciating asset.

Cross said:
In some cases, you don’t earn enough to save. Like it’s not even a priority.
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Adding debt on top of that fixes that somehow? Or just makes you feel better? o_O

If you don't earn enough to save, you need to start earning more.
 
Emperor Cross

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Kaka said:
If paying things off was as easy as you say, you wouldn't have millions upon millions of people in insane credit card debt.

Also, even if you paid it off before the thing broke down, that doesn't mean you didn't pay interest.



You're talking about leveraging money for income or capital generating assets...

Much different from financing a depreciating asset.



Adding debt on top of that fixes that somehow? Or just makes you feel better? o_O

If you don't earn enough to save, you need to start earning more.
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Earning more is not immediate, in some cases it's not even possible. Life ain’t like that. You don’t have the funds now, it’s why you use multiple payments or take a loan. It’s an investment on yourself, even if the good is going to lose some financial value. What matters is how you are going to use it, and how is it going to help you advance. 😭😭😭
 
Guren

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Some people are also in an impossible situation where they're stuck in an endless circle. Need more income to save but to get that more income you need a car but for that car you need a loan since you don't have that money on hand.
 
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