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.

The difference is "collateral". You should look up the meaning of that word. It makes a big difference, especially to the guy lending you the money. The point is, just because you "can" pay cash, doesn't mean you "should". Remember, I still have that money, I can pay off the loan anytime I want, and keep the money I already made.

But I do want to give you a big Thank-You. It's people like you that make it easy for me to borrow money so cheaply. So, THANKS, keep up the good work!