You shouldn’t borrow to buy something that depreciates in value. Examples that can depreciate in value are cars, electronics, jewelry, and much more. A reason why buying these is not good is because it produces debt. And debt, when for something that depreciates, is very bad.
One reason you shouldn’t borrow to buy something that depreciates is that what you buy should return an investment to you. Like buying a share in a company, it should return the equivalent of the value you paid for it or more. You expect the company you invested in to generate money for you. The same is not expected of a luxury TV, or of a sports car that you don’t need. Therefore, I think that borrowing to buy something which depreciates in value is not a good idea.
Another reason why you shouldn’t specifically borrow to buy it is that debt produces interest. And if you have a lot of debt over a long period of time, it can cause you a lot of trouble. An example is when you buy an overly expensive car. You don’t have enough money to pay it back, but you leave it be. “It doesn’t matter”. But then, after a while, it is getting impossible to pay the debt off. You rush to sell the car, but you realize that the car is not worth half as much as before.
In conclusion, I think borrowing to buy a depreciating asset is a bad idea. Borrowing to buy that video game you want, or getting that really cool car that you can’t afford are all not good. Debt can grow really fast.
Most people, if not all, find uses for money in their everyday lives. Whether it be to buy lunch, clothes, or even services. But what most of us need is a way to conserve our money. Many people find themselves spending too much money, living paycheck by paycheck. Simply eating homemade food, not impulse buying, and not indulging in unnecessary luxuries are all ways to save money.
Eating homemade food can save money in a lot of ways. The most obvious one is where eating out costs a lot more than it does when you eat homemade food. When you eat out, you spend an average of 20$ for food and labor costs, compared to when you dine at home, you only spend around 4-9 dollars for a great meal. Another way eating homemade food saves money is where you don’t have to pay for medical bills. Now if you live in Canada, you get free medical bills, so you just don’t have to pay the fee of unhealthiness.
Impulse buying is a great way to waste money. When you impulsively buy something just because it looks good and it says that the price won’t ever go down that far again, you probably didn’t make a good deal. First of all, great prices almost always come back. And, you didn’t know the quality of the object you bought. Now I’m not saying that you always have to research whatever you want to buy, but just that it is a good idea.
Last of all, not indulging in unnecessary luxuries can be a great way to save money. Not going to the movie theater’s every other day, or not going to buy that toy you think would be great fun are all ways to save money. Now I am definitely not saying that you shouldn’t go to the movie theater once in a while, or not to indulge yourself in whatever you like to do, just that you should be careful to not go overboard with your unnecessary purchases.
In conclusion, having the skill to conserve the money that you get can be very helpful. Whether it be saving money on hospital bills, something you’d really like to get, or an extra cool looking car, small choices can go a long way to saving your money. But just remember, don’t be a miser!