“Why shouldn’t  I borrow to buy something that depreciates?”   Many people find this question somewhat self explanatory, but it is still often overlooked.  Everyday an overwhelming amount of people take out unnecessary loans to buy things like cars, appliances, computers, and so much more.  To most people it seems harmless to buy a $40,000 car, when they only have $3,000, or even a $2,500 TV when they only have $200.  First of all you will always have to pay a certain amount of interest which of course,varies on your credit.  Say 10% interest on a $40,000 car this will contribute some serious stress to the wallet.  Also by the time a brand new car is paid off it can be worth less than half of the original price.  Same thing with a brand new home appliance, or computer.  The people who borrow money to buy things that decrease in value, waste time, effort, and money.  If you can’t afford something you probably shouldn’t be buying it.  Now this is not to say that there aren’t cases where loans are profitable.  Things that increase in value over time such as, houses, or land, are cases where taking out a loan can be a very smart decision.People that do take loans are smart to do everything in their power to pay off their debts.

Growing up in a small town I have always noticed the financial statistics of the people around me, I am not trying to judge anyone, but rather I try to learn from their success or mistakes.  Observing them I understand debt to be similar to a mule’s harness.  A heavy burden that must be pulled until the work is complete.  I try my best to pay attention to the business statistics as well.  I find that some of the local entrepreneurs are sometimes struggling to stay in business as a result of bad budgeting.  As I purchase my first car, start a business, or pay for my college education, and any other larger purchases, I hope to do all that I can to avoid borrowing money.

We can make as much money as we want, but we are only given a limited amount of time.  We must be smart, and work hard with our money in order to enjoy, and also be successful with our time.