12 Questions To Ask Yourself Before Taking On A Loan
Source: jayk7 / Getty
Can I make money with this money?
Don’t take on a loan to buy a depreciating thing that you just really want, like a car that’s out of your price range or a luxury apartment with sky-high rent. Always look at loans as vehicles for more money. A mortgage can be a positive type of loan because homes are typically appreciating assets, so you can make money by borrowing that money. The same can go for a student loan if your field of study pays so much that one day, the monthly payments of that debt will seem like pennies. Some individuals borrow low to sell high in the personal lending game. I am not advising that nor am I qualified to speak to it, but that is – when it works out – a form of buying money to make money. It’s just all too common that people take out personal loans for something that will not make them any money.
