"Neither a borrower, nor a lender be."
We all might have heard about this saying but for most of us it is quite difficult to abide by it.
The reason is our habit of borrowing money for our personal spendings.
Well we cannot deny the fact that the thumb rule of doing a business is to do it with borrowed money since our money has opportunity cost involved. But in general context, opting for loan to buy luxuries like car, house etc is never worth it. Specially because of the fact that most of the luxuries do not offer much value addition.
At the first glance, it looks like an easy money that comes with meager monthly installments but actually it works like a trap & fixed outflow.
Let us take an example, suppose you hate your job & want to switch the job or want to start your own business then the burden of these installments compel you to think twice before you leave the job or may further compel you to stick to your job no matter how miserable it might be. Moreover, if your boss comes to know about your borrowings, he might use it to his advantage by harassing you to the extent possible.
There would always be a sword hanging over your head which might contain you from exploring new avenues & in short makes you work like a bonded labour.
As the saying goes "still water runs deeper", until & unless we have peace & stillness in our life we cannot have access to any creative idea which might have an ability to change our lives upside down.
Finance companies have the capability to provide you loan till the last penny of your salary but that doesn't mean you keep on taking loans just to raise your public status & let your salary vanish before it comes to your account.
Burden of instalments has adverse effects on your flexibility as well.
No matter how idealistic thought it might sound but being materialistic would never find you happiness since happiness is living a peaceful life, doing the work of your interest & having less complexities involved.
I believe that one should avoid taking loan for lavish personal spendings until borrowing seems to be the last resort.
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