Spend vs. Borrow Decision Framework
Make smarter financial decisions with our Spend vs. Borrow analysis tool. We help you determine when it makes sense to use cash reserves versus leveraging credit options for major purchases and investments.
When to Spend Cash
- Emergency expenses requiring immediate liquidity
- Small purchases where financing costs exceed benefits
- When debt-to-income ratio is already high
- When investment returns are lower than borrowing costs
When to Consider Borrowing
- Large appreciating assets like real estate
- When interest rates are favorable and tax-deductible
- To maintain liquidity for other opportunities
- When investment returns exceed borrowing costs
Key Factors to Consider
- Current interest rate environment
- Your tax situation and potential deductions
- Opportunity cost of depleting cash reserves
- Impact on overall financial plan and goals
Ready to Get Started?
Meet with us today to see if your money could be working harder for you. Receive a free, no-obligation consultation.