You could pay for the purchase completely with your own funds under your current assumptions. Alternatively, you are considering financing a portion and keeping more cash available. A blanket statement that being debt-free or having more liquidity is always better is of little help in this personal decision. You need two fully explained paths for the same purchase.
Keep the starting point identical
Record all actually clarified acquisition uses and the own funds available for them. Other amounts already committed are to be separated beforehand. An apparently full cash purchase is incomplete if necessary costs disappear into another file.
In the alternative path the actual financing amount, disbursements, costs and ongoing repayment schedule are supplemented on the basis of a concrete offer. The article does not promise loan availability and does not assess specific terms.
Two hypothetical opening balances
In the example a household has 350.000 euro of usable funds. The acquisition need already fully clarified for the case amounts to 300.000 euro. With full payment from own funds 50,000 euro would remain available and no newly taken debt would exist for this purchase.
The other variant assumes taking a 100.000 euro loan and using only 200.000 euro of own funds. Before the additional financing costs to be checked concretely there would then remain 150.000 euro of own money available, while 100.000 euro of new loan debt would exist. The additional availability is therefore not an additional increase in assets of 100.000 euro.
Explain the purpose of the remaining money
Should it cover a later known expense, preserve short-term capacity to act, or actually be invested? These purposes require different considerations. A made-up guaranteed return is not placed against real loan costs. For a planned investment, risk, costs, taxation and availability must be examined appropriately.
Also let the future cash flow of both paths be shown. The loan variant requires its agreed payments. The variant without a new loan has different available balances, but in the case of additional expenses may raise its own question of supplementary financing. None of these questions is answered by the opening account balance alone.
Name the robust personal limit
Describe which sum you want to keep reachable for concretely named purposes and what ongoing obligation you can bear. Use several explained variants for uncertain expenses. If you achieve your desired leeway in both paths, further personal criteria can be consciously weighted.
The result is a comparable view of assets and payments, not general advice on taking out a loan. A higher account balance and a higher debt occur together in the picture. Only in this way can the desired flexibility be weighed individually against actual costs and obligations.