Myth : you should always pay cash if you can.
Fact : investors should strive to have multiple tools in their financial toolbox, including taking on debt, using leverage, paying cash, and knowing when to pass on something that isn’t affordable or just doesn’t make sense financially.
Yet, it can be difficult to figure out when to use one tactic over another. And other common challenges include overcoming the mental hurdle of taking on debt even when it’s advantageous, and respecting potential gaps between what someone is willing to lend and what you can truly afford to borrow.
Remember: all debt is bad debt if you can’t afford it.
Typical Examples…
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