Last week we talked about why you lose money when you pay cash for things. There were probably three things you were thinking when you read that post but before we get there I want to congratulate you if you are a strict cash buyer and have no payments. That is a huge feat!

Here we go, the three most common responses I hear:

When I purchase with cash,

  1. I don’t know anyone money.
  2. I don’t like making payments.
  3. I am financially free because I own everything.

It is such a common theme with cash buyers the only way to get you on another “thinking path” is to tackle these one by one.

Don’t Owe Anyone Money

You don’t owe anyone money, debt free in essence. If you are a cash buyer you really like the thought of this and it’s a feeling of liberty.

However, if you have the cash that most likely means you are a saver. If you are truly a saver then you always put back what you took.

No Payments

When you put back what you took, who are you paying back? YOU! That is right, you owe money back to yourself (savings account) for the money you used.

You just seen you are paying yourself back, now in order to that you have to PUT money back into savings. That is a deposit into savings, otherwise known as payments.

If you deposit money into savings you make payments to your savings account. Just because you are not forced to save does not change the meaning of the term payment. If you are a natural saver you may not think about it this way but all in all, they are the same.

Financial Freedom

No debt and no payments mean financial freedom, does it really? The terms financial freedom and debt free are used interchangeably yet they do not mean the same thing at all.

Financial freedom is knowing you will never run out of money. Being debt free means having no payments and owning everything you have, this aids in financial freedom for sure. As the old grandfather says in the movie Pure Country, “You GUESS? NEVER guess. I mean, you gotta KNOW what you’re doing!” (My favorite part of this movie!)

If you are concerned about running out of money should you lose your job today, you are not financially free?  It is required for you to have an external source of income (aka job) to keep going. You may have enough to get you by for a while, but that is not freedom. That is postponed worry.

In the blog Borrowing Cash Value from Life Insurance, I explain why borrowing from a life insurance policy is better than using cash.  “In simple terms, your money continued to grow while you were able to use someone else’s money.” This gives you a much better opportunity for financial freedom as you won’t run out of money when done correctly.


Open your mind and think beyond owing someone else money, payments and financial freedom as you know it. Realize if you are a saver and purchasing with cash, you ARE paying someone back and it’s yourself. You are also making payments and you are calling them deposits.  Then ask yourself if you really are set up for financial freedom? Freedom from the worry of running out of money. Having a surplus of money that will never drop to zero is financial freedom.

Being debt free and owning everything is an amazing start, but it is not the final step. To get to the true financial freedom you must go beyond an account (savings, IRA, 401k, etc) that will decrease each time you take money out. You want to increase your money while you use your money and whole life will do just that when you work with an Infinite Banking certified agent.

As always, please leave comments below for me or contact me if you have any questions. I am always thrilled to hear from you.

Mary Jo