2024-04-02 06:11:18
There are times when the alternatives to which you could allocate your money represent a greater profit.
Many times there are institutions that have annual payments: schools, gyms, universities, are some examples. And they encourage you to pay in cash (instead of 10 checks, for example) by offering you a discount.
But did you know that it’s not always good for you? This is because there are times when the alternatives to which you could allocate your money during that time represent a greater profit.
Let’s look at an example:
If you have to make an annual payment of 1 million pesos and pay in cash with a 4% discount, you will have a savings of $40,000
Imagine that instead of paying in cash you take 10 term deposits during November with monthly releases from March to December. On the other hand, you decide to pay at the respective institution with 10 checks of $100,000 each. When your term deposits are released month after month, you will be able to cover the $100,000 check but also the total profit from those term deposits will be $54,799.
This is not the only alternative, but it is a way to confirm that it is worth taking a look at the financial options when they offer us an “offer” to see if a better one appears!