Borrowing money seems to be a common place thing nowadays. People borrow money for everything from a car to a house. If you can’t afford it, borrow the money.
Whether you borrow from a bank or a personal loan, there are somethings that if you can’t pay for it, you shouldn’t get it.
One is a car. My dad always said that if can’t afford to get a car, get a cheaper one. You can’t borrow money for a car because the minute you drive it off the lot it’s value starts decreasing. You can buy a brand new car and by the time you want to sell it, it’s worth way less. My dad says buy a cheaper car, or a used car, one you don’t have to make payments on, then when you’re wealthier you can get a nicer car.
One that you can make payments on is a house. It is basically inevitable that you’re going to get a loan for a house, that is fine. A house is a big investment. Someone I know recently got a loan for a new barn. He’s a diary farmer. It was a big loan. He wanted to increase his herd so he built a big barn, which meant a big loan. Is this barn going to increase in value? Probably not, but it will house animals and they will make money for years. So this is something you can take a loan out on that will/won’t increase in value.
Before you borrow money, you need to think of:1. How is this going to benefit me? Do I need this? As for a house; you need to live somewhere so you so you are going to need it. Chances are you will be able to sell it for a pretty good price in a few years. 2. If you do need something that is going to decrease a lot in value; see if you can find something that will last that is cheaper.
So bottom line, don’t spend a ton of borrowed money on something that is going to decrease majorly in value. Always check if you can get it cheaper, and see if it will last you till you’re wealthy enough to get a better one.