Category: Borrowing

There are many people that think that if they had some more money then they will be happier, others do not agree, but there are a lot that will borrow money to increase their happiness.

It is worth being careful if you are thinking about doing this. Although the items you have bought may bring you some happiness, particularly when you first buy them, you may find it less good when you have to pay the loan back over a long time. You may find the repayments easy at first and may not mind paying it when you still remember what you spent the money on. However, as time passes, you may find it harder to manage and it may be less fun as you may no longer feel happy about what you bought. If interest rates go up, the repayments will be higher and the cost of the loan will go up as well. It may be harder to pay for it and if prices rise as well, this could make it even more difficult to manage. It may be the case that you find the happiness of having the items that you spent the money on is very much outweighed by the stress of having to pay it back.

If you find that you would like to have more things, then you can use your savings to pay for them rather than borrowing. This is a much cheaper option and is less likely to cause you as much stress in the future than borrowing money. Another way is to wait and save up. Not only will this also avoid the borrowing, but you will have time to think about whether you really want the items while you are saving up for it. It will take time and hard work budgeting to save the money and you will have to decide whether you think that the item you want to spend it on was worth all that hard work and effort.

Sometime sit can be good to not measure your happiness on the amount of items you have or how much money you have. You may feel that having more will be the answer and that by borrowing some money and having more things you will be much better off. However, if you get yourself into a lot of debt you can find that things get really hard. It can be very difficult to pay back debt, especially if you have so much that you only just manage to make the repayments, each month. You may end up paying back the minimum and if you do that on a credit card then you could find that you will be in debt for a very long time.

So you may find that you will be even happier if you do not borrow money. It is a matter of getting into the habit of not spending so much money. Do not think that you have to have lots of things to be happy but enjoy what you have and things which do not cost money. It can be hard at first but it does get easier and you can find that you will take joy in not spending money and building up your savings. It can be very pleasurable buying items that you have saved up for knowing that you worked hard to get it.

However, there will be some things that you will never be able to buy unless you borrow money. For example, it is very unlikely that you will be able to afford to go to university or buy a home without borrowing money. These things may not make you happy, but a lot of people get a lot of pleasure form both of them. The thing with these sorts of debt is that they should enable you to gain money in the long run. The education should enable you to get a better paid job, which will mean that you will be able to buy more things, especially once you have repaid the loan. You should also find that if you buy a home, it will increase in value and so you will get more money back from it than you paid in a mortgage unless you are very unlucky.

So it is not always that straight forward to know whether a loan will make you happy or not. It is always wise to think through a loan before taking one out. Consider every form of borrowing before you do it and make sure that you think about how much it will cost you, how long it will take to repay and whether you think that it will be worth it. It may seem like a lot of effort, but often you will be making a really big commitment and so you need to make sure that you are ready to take that on.