5. Financing leads to more spending
Sadly, the vast majority of us tend to spend more money when purchasing unnecessary or way too expensive items with a credit. This is 100 percent psychological. Why? Because when we buy a $1,000 laptop or smartphone it doesn’t seem like a life change if we just sign a receipt for it.
Plus, you can physically feel the bills leaving your hand if you pay with cash, giving you a better sense of how much those things cost and how much money you have left in your wallet. So, is it worth buying a new iPhone every time? We don’t think so—it is an expense you don’t need.
