At some point in your life, you may have to make a loan for something. Whatever that something is, it must always be worth it. However, there are some things that you should always avoid making a loan for.
Here are 5 things that you might think you need to borrow money for but should not.
01 Impulse Buying
Nowadays, because of the convenience brought about by the Internet, impulse buying is becoming more and more common. When browsing some shopping websites or going around the mall, make sure that you already have a budget prepared beforehand; or else, you might be urged to finance your impulse buying through loans or debts. Remember to have a priority list regarding your necessities, and do not build a habit of impulse buying if you have the tendency of making loans for such activities.
02 Purchasing a Lion
Of course, it is highly unlikely that you would want to apply for a loan just to purchase a lion. Why would you ever need a lion on your front porch? And that is exactly the point. Do not ever make a loan for things that you do not really need. Unless you can logically and sufficiently justify your necessity, then do not go ahead to make the purchase. If you cannot tell yourself why you badly need something, then it will not be worth buying, and will certainly not be worth making a loan for.
03 Wedding Planning
During a wedding ceremony, when couples exchange the vow: â€œwhat is mine is yours and what is yours is mine,â€ it should not include the loan you made to finance the whole wedding planning; not because you should not share the loan with your future spouse, but because the loan should not happen in the first place. Being debt-free is always the best way to start a new life.
04 Getting Insurance
Are you planning to have a debt in order to secure your future from untoward incidents that may plunge you into debt? Because if you are, then you might not have a full understanding of how money works. If you plan to get insurance, then get insurance; but do not finance it with debts. Taking out a loan in order to pay for insurance is not the wisest move to make.
05 Paying Debts from Loan Sharks
Loan sharks are illegal lenders. If you are being pressured to pay back the loan you have made from a loan shark, do not give in. Since loan sharks operate illegally, they do not have the rights to lend money or collect payments. Thus, the right move is to stop your payments to the loan sharks, and report them to the authorities. Making loans from legal lenders just to pay back your loans from illegal lenders just does not sound right. If you have already made the mistake of transacting with a loan shark, do not add another mistake by financing it with legitimate loans.
There are a lot of things, products, and services out there that seek to get our money from us. However, it is of utmost importance for us to determine which things are worthy of our money (or worthy of our borrowed money for that matter).