Cash is king. Make money work for you.

I hear this all the time. People making large cash deposits on low interest loans. Regardless of it being a home, car, credit card, etc. In the long run you lose money even more money.

Due to a lack of a proper financial education, most of us actually get financial advice from the people closest to us. Our parents. Now like most people, your parents aren't wealthy millionaires. Chances are they've worked most of their lives, lived frugally and have scrapped by to have the little that they have.

Do you ever wonder if there is a better way? I have. So I did some research and learned some things on my own, rather than take advice blindly. Would you take restaurant advice from someone who's never opened or ran one? Do you take advice on how to beat a ticket from someone who's never beat one? You get the idea.

It's always a debate, so I've put it down in a spreadsheet below. Click on the link to see the full view. It should be self explanatory, but inc ase you do have questions I'll sum it up after the link.

Last 10 years Saving vs Debt

In the spreadsheet there are 2 separate sections. The top is someone who invested their money and below is someone who paid off debt first before saving.

As you can see I've use a real mutual fund in the example with 10 years worth of returns.

In the mad dash to save $3,700 in interest they sacrificed $16,000 in gains.

So, the big questions is do you want to save $3,700 or make $16,000? I'd rather have the $16,000 in cash. Wouldn't you?