Tuesday, November 18, 2008

Cash = Empowerment

When you have cash, you should feel empowered. Why? Because it puts you in control.
For a project at work, I've been diving into the world of social media. Among the many learnings, the most profound has been how it has empowered we the people! Instead of us having to buy access to the masses through corporate media, we can reach the masses through one another.
However, while money no longer controls the flow of news and information, it does hold power in many circumstances. For a young couple, having cash should be empowering.
I've posted before about our saving towards a new car, and have felt very empowered as we have begun the car shopping process. Whether we're looking at a dealership or through a private party, We know what we have to spend. We don't have to ask about financing options or rely on the selling party to help complete the deal. In fact, having cash also gives us the upper hand in the negotiations.
By living within your means and avoiding the temptation to take on debt, young couples can empower themselves. With cash, we can choose how our money will be spent. When in debt, your decisions on where your money must go have already been made.
So keep a portion of your wealth liquid, pay off your debt, and feel empowered!

2 comments:

  1. I would be careful about telling a dealer that you're paying with cash - a lot of times when they find out they won't be making any money on the back end of the deal through financing, they'll try to give you a worse deal up front to compensate. Try to work out your best deal first - without telling them how you'll be paying.

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  2. Good reminder, Peter. Never show your hole card. Herb Cohen would be proud!

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