This post got started a couple weeks ago, but the internet went down. Now I finally post it. I don't remember the source of this train of thought. Nevertheless, it is good advice. Don't buy stuff on credit that is going to depreciate or go down in value. Sometimes this isn't always possible, but the ideal is there. When we buy stuff on credit the value of the product or service can go down. This means that we could owe more money on a product or service than it is worth. For example, The value of a New car goes down several thousand dollars right when you drive it of the lot. Why should we owe more money on the car than it is worth.There are some things that do go up in value after they are purchased. For example, the value of an education generally goes up every year. We can certainly earn more money with higher education. So, if it takes some debt to get an education it can definitely be worth the "investment". Likewise, buying a home is likely a great long term investment. Debt can be used wisely in buying a home. In most cases over a long period the value of a home will go up. location, bad neighborhood, flood, cracked foundation, etc are some examples of when a home may not appreciate. Tough economic times can also cause the value of a home to temporarily stay constant or go down in value.
The Moral--when you cannot afford to buy something that depreciates with cash. . . . .don't buy it until you save the money to pay "cash". Let interest work for you instead of against you.
