Dave’s Take on Layaway

Oct 31, 2012, 3:54 PM | Updated: 4:22 pm

Question: Lori on Twitter asks what Dave thinks of layaway with no fees. Dave says it’s not bad, but why not save your money. Cash is better.

Answer: It’s okay. Layaway is when you set a product aside, pay on it a little bit every week until it’s paid off, and then you pick it up. They hold it behind the counter for you.

I kind of prefer that you just save the money and buy the item. What would be wrong with that? Then you could have the option of doing other stuff with your money, and you would not be halfway into a bicycle or television. Why not just save up your money?

If someone argues that it’s on sale, it usually is, one way or the other. You can find deals on things, and when you’re walking around with cash in your pocket, you sometimes make different choices.

Layaway is basically a savings account that doesn’t pay interest and it traps you into using the savings for only one thing. It’s not bad, but it’s just not good. Cash is better–you having the personal discipline to set that same amount aside each week or every month until you have enough set aside to buy something. One definition of maturity is learning to delay pleasure.

Hear the call!

Download Dave’s show, commercial free, right here!

Podcast Dave’s show!

Dave Ramsey

(Pixabay Photo)...
Dave Ramsey

Dave Ramsey says: Gambling won’t produce consistent financial success

You might see a news story once in a while about someone winning big money in a casino, but that almost never happens.
6 days ago
(Pexels Photo)...
Dave Ramsey

Dave Ramsey says: Couple with baby should marry, combine finances

It’s very difficult, legally and relationally, to play house financially when you’re not married. Marriage will combine incomes and lives, Dave Ramsey says.
13 days ago
(Unsplash Photo)...
Kristina Ellis

If it’s right for you, no-loan college may be answer to student-debt crisis

Is no-loan college the answer to student-loan debt? Here's a look at the pros and cons of the idea, along with some tips to avoid student debt.
15 days ago
(Pexels Photo)...
Dave Ramsey

Dave Ramsey says: Review insurance coverage once a year

You should make it a habit to review all your insurance coverage once a year. When it comes to your home especially, you need to have a policy equal to the value of the home.
20 days ago
(Pexels Photo)...
Ken Coleman

Creating your personal brand takes time, hard work

Your personal brand is how others perceive you. It’s an outside snapshot of what you value on the inside. A personal brand isn’t a mask you wear around others, and it’s not something that’s created overnight.
22 days ago
(Pixabay Photo)...
Dave Ramsey

Dave Ramsey says: Expectant parents can live off 1 income if they choose

There's no wrong answer for an expectant mom comparing the ideas of continuing to bring extra cash to the household or being at home with the baby.
27 days ago

Sponsored Articles

Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

ADHS mobile program brings COVID-19 vaccines and boosters to Arizonans

The Arizona Department of Health Services and partner agencies are providing even more widespread availability by making COVID-19 vaccines available in neighborhoods through trusted community partners.
Canvas Annuity

The secret to guaranteed retirement income

Annuities aren’t really a secret, but they are so misunderstood that they might as well be. Once you understand what an annuity is and how it can benefit you, you could decide this “secret” is the perfect supplement to your retirement plan.