Why Investing Your Money is better than having stagnant money in a Account.

I frequently overhear individuals saying,”I not taking any loan yes,I paying for my ‘things’ cash.” quote on quote.I believe we live in a mis-conception mindset that taking a loan from a financial institution is a catastrophe.My perception of obtaining a loan, is that it is a fundamental tool in growing your business more effectively and efficiently and it helps you build your credit rating for the future for you to achieve your dream home or vehicle.

I will like to just enlighten for those who do not know ‘always use the bank money rather than yours’.The benefits of taking a loan are as follows:-

1. Your money is not being used,you use the financial institution money.
2. You repay based on your income for business owners or salary for employees.
3. Loans are secured based on your preference to do so,may incur additional charge based on the financial institution.On the other hand GOD forbid you passed away the loan is paid in full of existing monies being owed.
4. It builds your credit rating as mentioned previously.
5. Loans allows you to develop a business mindset,as you prepare yourself to calculate your expenses for the month versus the loan payment.

On the other hand as we mentioned the advantages of obtaining a loan,what will we consider the disadvantages of going for a loan:-

1. If you fail to pay,the bank or financial institution may cease your asset or assets. However if something is valuable to you and is of worth,you will not let something like that happen.
2. If you can not pay the amount of money you and the bank agrees on,you can inform them of your dilemma and you can obtain the approval to pay a smaller figure.The issue is that you will pay more interest as a result you will take a longer period to pay off the loan,however take in consideration no assets of yours will be cease.
3. Some months you may have enough money to obtain the ‘wants’ that you maybe accustom to,however everything in life is a sacrifice, if you want betterment,basically it is how bad you want to reach your goal.
4. The bank will add on interest for the money that was lent to you,furthermore let’s be realistic who is lending money and not expecting to receive interest.To my understanding,no one!

In conclusion,essentially that was my opinion as to why it is of utmost importance to obtain a loan.Ask yourself, if you had two million dollars at the moment,will you take 1.5 million of your money to purchase a home,debt-free and survive with $500,000? knowing for a fact you have utility bills to pay for,a vehicle to maintain,a family to feed and the ‘wants’ in life that you probably accustom to? The answer is no! I will go for a mortgage loan,use the financial institution monies to purchase the home and invest most of my finances into what I desire and retain some of the monies,taking into consideration if the intended plot fall short,we have some cash at disposal for ‘hiccups’ in the investment.