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Spending Tips: Reasons You Should Always Pay Cash Than Have Monthly Installments

Pay Cash Than Have Monthly Installments

Many people think that monthly installments are the best way to buy things. For example, you can get a new car or even furniture for your home, all with just a couple of monthly installments. The problem with this is that you can end up paying more than if you had paid cash in the first place, and it’s difficult to know how much money you’ll be spending each month. This blog post will explain why it’s better to always pay cash instead of having monthly installments.

Paying Cash Can Get You Discounts

It’s always a good idea to pay cash for big-ticket items, such as appliances. A quick google search will reveal dozens of companies that offer discounts when you furnish your home with their products and pay in full. 

Items such as furniture and mattresses are usually discounted when paid for in full. Even cars can be a part of this savings plan! For example, dealerships will offer lower prices if you pay cash for cars upfront, saving you extra money.

You’ll Spend Less by Paying Cash

Paying with cash means you’ll spend less since it’s harder to overspend when using cold hard bills. In addition, studies show that people are more likely to save money by paying in cash than they would be if the money were coming out of a bank account or credit card because there is a psychological difference between handing someone money and swiping a card.

Plus, you don’t have to worry about overspending when using cash because it’s tangible, and there are limits on what you can purchase at any given time. 

It’s much easier to spend more when using a card because there are no consequences until bill time. For example, if you go out and get $500 worth of stuff on your credit card, it can be very tempting to just swipe again and repeat the process. But when you pay for things in cash, that’s all there is to spend right then.

So if money management is one of your struggles, think about how paying with cash can help curb those habits.

You Avoid Paying Interest

You may think you’re able to afford your monthly installments, but in reality, the payments are draining your bank account, and they could cause more financial problems than anticipated. The only way that many people get out of debt is by managing their cash flow wisely not to accrue ridiculous interests.

It Forces You To Make an Assessment of What Is Most Important to You

A cash purchase is the clearest, quickest way to spend your money. You have less opportunity to rationalize away or regret a larger, more expensive purchase if you pay for it in full at once.  This can be especially true with purchases that would often not be considered necessities – such as electronics and clothing items – or purchases that are large, such as a car. With cash, you have to assess what is most important to you.


So, what do you think? Is it time to stop spreading the myth about paying in installments for goods and services? If so, then pay cash. You’ll be able to enjoy your new purchase without having monthly payments hanging over you all of the time. The best part is that this way, there’s no risk of overextending your budget.

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