We have all been at that point where we just needed a little push (a.k.a a loan) from people close to us in order to get by. It happens. How many times have you drawn a budget you abandoned almost immediately. However, even when borrowing is an option, here are 6 things that you should never do with a loan.
Don’t Take A Loan To Buy Something “Fun”
When you can’t afford something, you can’t afford it. Taking a loan can help you get that new phone, new clothes, or even food from that place that you’ve always wanted to try. However, all those things don’t bring you money. You’re going to be stuck paying for a loan that is basically a sunk cost.
Don’t Take A Loan To Bet. I Beg
If there is any one fact that you should believe in, it’s that one team will find a way to screw you over. Even the sure bets flop! And trust me, you don’t want to be paying back money that you have lost too. It’s twice as depressing.
Don’t Take A Loan For An Event
We get it, you want to have that epic birthday party. Or you want everyone to be talking about your wedding for weeks. But taking a loan to finance an event for other people to come and eat and go home is something that is going to sting for a while.
Don’t Take A Loan To Pay Rent
If you have the opportunity to live at home rent free, then there should really be no rush to leave. And if you do decide to move out, make sure that the place that you have chosen to live is within your means. Otherwise you’re going to end up owing two people: the landlord and whoever loaned you rent money.