The question this week was, ‘should I not borrow money to buy something that will depreciate’. The answer is yes, I shouldn’t. Why? Now that is a much bigger answer. First off, in the question, borrow takes the place of the word loan. The word ‘depreciate’ means to lose value. So the question is, ‘ why should I not loan money to buy something that will lose value?’ Now here are a couple reasons.
First off, the simple fact that I would be borrowing money in order to buy anything is already inadvisable. You should never get a loan to buy with. Sure you get money quickly, but people don’t realize that when you get a loan, you have to pay it and more back. You actually lose more than you get. The problem here is that people don’t wait. They want things now, and can’t wait any longer to get it. This impulsive action has been performed by so many people in our country and many others around the world. They get themselves into debt, and it is hard for people to pay it off. It is very unwise to get yourself into debt, and you will suffer for it. If I were to want something that much, I would earn the money myself, rather than ask someone else for their cash just because I was impatient.
I would also have to be cautious of what I am buying. Buying something that would depreciate over a little bit of time is very unwise and it will cost you dearly. And don’t ever buy it with borrowed money, because if you did, you would be in a much bigger hole than you would have been for just buying it. Buying something just because is another terrible contributor to this. You lose all that money the second you buy it, and it won’t come back. It’s almost logical to avoid doing such a thing, and yet, so many people do it with out ever realizing the consequences of the aftermath. Once they have lost the ability to pay their debt back because they bought things like this, The person they owe the money to could potentially re-possess his home or car, or anything to help cover the debt owed. The sad thing is that this happens all the time, and they can’t do anything about it.
This can be avoided though. If you earn the money and have the discipline to wait for when you can afford that thing you need, then you would be far better off than others who didn’t wait. Also, make sure you know that what your buying will be a wisely made purchase, and that it will retain it’s value. And please, prove that you know the difference between your needs and your wants. When it you in debt to someone, you are slave to the lender. Don’t become enslaved. So, the answer to the question ‘why should you not borrow to buy something that loses value’ is’ Because debt enslaves’.