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Finance Tip of the Day

What's the REAL Cost?

  • 2017 31 Aug
What's the REAL Cost?


What’s the REAL Cost?

Have you ever stopped and asked yourself: What’s the real cost of that item I’m buying? Every time you choose credit as the form of payment, you’ll pay a premium. Too many of us dismiss the real cost of an item as long as the monthly payment seems to fit our monthly budget.

Next time you’re about to purchase something with credit, use this simple real cost calculator in order to understand the final price of the item. As an example, a $10,000 loan taken out for 5 years at a 5% interest rate will add $1,322.74 to your final price. Are you OK paying additional $1300 for that item?

Today's tip brought to you by Mvelopes and Money4Life Coaching.