Cash Vs. Finance

Bobbo wrote:
Financing something instead of paying cash is no different that borrowing money to invest it. In a good economy, you can get away with it. If a recession hits, you can lose, big time. If you can't afford to pay cash, that is one thing. If you CAN afford to pay cash, you are betting your financial security on the economy staying strong.

I don't see anyone recommending taking out a loan and just investing that money.

OK if you have twice the money you need languishing in a money market account I understand. There are other investments that come at a cost to convert to cash. Also having a loan payment can restrict other aspects of your life so you feel the pain of spending that money. Otherwise investments can be sold and you feel no pain until the investments are all spent. Interest rates are so low for those with good credit I don't see this as black and white, good and bad. And I also recommend making more than the minimum payment while times are good.