Let’s face it; without money, this world will not turn. Most things that we need and enjoy have a price tag attached to them. Because of this, we shouldn’t feel guilty about wanting to have some cash in our pockets and our bank accounts. Money might be the root of all evil, but it’s definitely not the devil itself!
Now, conventional wisdom teaches us that we should manage our finances well so that we will never be in debt. There is credence to this, don’t get us wrong. However, it’s not right to conceptualize “debt” as an all-bad thing. There are times that getting a loan (therefore being in debt) is smart. This article discusses these times.
You want to invest in your education.
Many of the high-paying positions in the job market today require some sort of formal training or even degrees. You cannot be a lawyer without going through college AND law school. It’s the same for doctors and other professionals.
The difficulty of going to school is one thing, and the high cost of tuition is another. Many students shy away from schooling not because they are academically inept but because they don’t have the funds for it.
This is where student loans become extremely useful. They allow you to take the education that you need now so that you can build your career as you pay off your student debt. The process of actually applying for a student loan might be tedious, but trust us, it’s going to be worth the effort.
You have a really good business idea that you need funds for.
Starting a business is a goal that many people have. Many save up for it. While we are not really against this, we all know just how difficult and time consuming saving is. By the time that you’ve raised a sufficient amount of money, the prime time for the business will have already passed!
So don’t let opportunities pass you by. Write that convincing business proposal now and start talking to banks and other institutions that have the capacity to give you cheap loans. You won’t have to worry about repaying the loan if your business thrives because you’ll have plenty of revenue to pay it back; the business loan is basically going to pay for itself!
You want to make a large investment
In life, sometimes we see an opportunity that’s too good to pass up like buying a piece of land. If the price tag is fair but outside of what you can spare from savings then you can take out a loan if you have the collateral to back it up. An expensive car or your home can act as collateral. For the right investment, it can be worth it to buy the more valuable property. This is one way of strategizing with your money, current assets and future investments.
Borrowing money doesn’t necessarily have to mean that you are broke or in a dire financial situation. In many cases, it simply means that there are bigger things that you’d rather have now than later because the delay can bring so many missed opportunities.