This is one of the 20 tough financial questions posed in the “Do This or That?” cover story in the September 2011 issue of Kiplinger’s Personal Finance. Use the drop-down menu above to consider other financial conundrums and the right answers for you; share your own experiences and insights in the Discuss field at the bottom of this page.
Pay cash if the item you’re buying depreciates rapidly. That includes nearly everything you’re likely to bring home—including appliances, computers and cars. Why pay interest on something that loses value over time? (Your cash isn’t earning buckets of money in the bank anyway.) Plus, paying cash reduces the risk of buying more than you need. If you don’t have enough cash to buy it brand-new, then buy it used.
Finance it if the purchase is a necessity and you don’t have the cash, you qualify for low-cost credit, and you’ll pay back the balance as quickly as possible. You may also want to charge it if you need to build a credit history.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
SEE ALSO:
QUIZ: The Truth About Credit and Debt
-
America's Surprising Strengths in Manufacturing and ExportsThe Kiplinger Letter Despite common perceptions that the U.S. doesn't build things anymore, American factories are still hard at work. A special report from The Kiplinger Letter.
-
The Trump GOP Tax Bill Could Worsen California Cost of LivingState Tax Energy bills in the Golden State may shock you if Republican lawmakers in Congress remove certain energy tax credits through Trump's 'big, beautiful bill.'
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Costco Cyber Monday Deals Are HereCostco has rolled out dozens of Cyber Monday deals. Shop and save now through December 2.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How to Figure Out How Much Life Insurance You Needinsurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life insurance needs.
-
Five Reasons You Shouldn't Shop on Amazon Prime DaySmart Buying Think twice before getting lured into buying a bunch of stuff you don't need just because it's on sale.
-
Amazon Big Deal Days Is Coming! We’ve Got All the DetailsAmazon Prime To kick off the holiday season with a bang, Amazon Big Deal Days runs Tuesday, October 8 and Wednesday, October 9.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
