How to Fund Major Purchases

Although "paying cash" feels good, it may not be the optimal funding strategy for major capital purchases as defined in the below video course. In addition, having access to capital (something you lose when you deploy cash) is a real benefit we can assign a tangible value to. There is a formula that major corporations use to measure these areas called EVA® (Economic Value Added) which helps to understand the value of capital beyond what it can purchase. In our experience, most people will unknowingly and unnecessarily lose more money within this area than they will accumulate in their lifetime savings and investment accounts. i.e there may be more "Economic Benefit" by understanding this area than seeking higher returns in the market, often requiring more risk.