Normally when you sign up for various services where the upfront cost is large, companies would often provide monthly payment plans to help lighten the load for many people. Fifty dollars a month sounds more affordable than six hundred dollars at once to many as an example.
This surprised even me though where a person told me that they signed up for a two year contract with their phone carrier which entitles them to receive a discount on the phone hardware. Instead of paying the full one thousand two hundred dollars for the phone the company would pay for half of that and each month they would bill him something like twenty five dollars a month for the rest of the phone tab.
So he should come out ahead in the sense of he has more money to use now versus just handing everything over immediately. This is when he mentioned he always just pays the company everything right away still as he doesn’t like to have any kind of monthly liability.
That would make sense in regards to ensuring you will never be surprised financially. For example, who knows if down the road you end up losing your money due to theft and now you can’t pay off this monthly bill that you could have easily done before. That seemed to have been his way of thinking which can be wise when you think about it.
I suppose it comes down to whether or not you are someone who has safe investments strategies too. For example, it won’t be much but just leaving it in the bank for some interest will technically net you some money.
But if you are someone that just wants less hassle and paperwork this can be a great habit to make sure you are always spending what you can actually afford at the present time.