Sunday, March 25, 2012
Very Slow on the Uptake
When I was a college freshman, my roommate told me that her father always paid cash when he bought a car. She looked very proud of this statement. It was pronounced in a similar way to other teachings of financial advice from her dad, like when she told me that he always knew to a penny what was in his checking account. I had a hard time puzzling out why it would be better to walk into a car dealership with that much cash in his pocket, instead of writing a check. I suppose I never forgot that statement because I couldn't figure it out. I was many years out of college when I remembered the statement again and realized that what she probably meant was he never took out a loan to buy a car, but purchased it with money he had in savings. That is good advice.