When it comes to big expenses like furniture and large or high-value appliances, you’re often faced with the decision of whether to pay in full or in installments. Maybe you have enough money to pay for it in cash upfront, but should you?

EMCOR put together some tips so that you can discern whether you should pay in installments or pay cash upfront.

Emergency fund

Every day, we have our to spend money on our day-to-day living expenses. We also have our bills and things like tuition to pay for. As a rule of thumb, you are advised to have three to six months of living expenses ready in case of emergency.

Even if you can afford to pay for your purchase in cash upfront, you might want to consider paying in installments. Having enough cash might mean having to dip into your emergency fund. Either save up more first or opt to pay in installments.

Reasonable installment plans

If paying in installments mean incurring unreasonable extra fees, it may be better for you to pay in cash upfront. Many stores, including EMCOR, offer zero-interest installment plans It’s good to take advantage of these offers as much as possible.

The same principle applies when paying using your credit card. Many banks offer flexible payment plans or if you make the purchase after the month’s cut-off, your payment will be deferred to the next billing cycle.

Discounts for upfront payments

If your purchase offers a discount for paying upfront in cash, might as well take it. A good discount would be at least 5% off the original price for upfront payments. Some stores will also offer freebies for payments done in cash, usually accessories to come with the item.

If you’re looking to purchase furniture or appliances, EMCOR has good offers whether you are paying in installments or cash upfront. Just ask us when you visit your local EMCOR store or check out how to pay in Installments on our official website.