I would just like to point out that every time someone uses cash to buy something then they are indirectly borrowing to buy that item (unless they have no loans at all). This means that every purchase they make will incur interest for years to come. Example Borat has a $100,000 home loan with $20,000 in his offset account. He takes the $20k and buys a car (or sheep). The interest on the home loan jumps up and he is paying an extra $1000 per year (approx at 5%) in interest for that car - and it isn’t even deductible. So every time you want to make a major purchase just consider this. A new car goes down in value as soon as you drive it and it will cost you a fortune in other costs, plus it will cost you dearly in interest over 20 years or so. Think like Buffet - If you use that $20,000 to invest now, in 10 years it could be worth $40,000 and be producing $2,000 per year in income whereas the car could be worth $7,000 and costing you $1,000 per year in interest still. You can also use this as a dieting tool - every beer you buy will cost you for years to come! I am still paying interest on some cheesecake that I had 3 years ago.