First published on 13th March 2019 on jedaktari.wordpress.com
As a you young person starting out in life, you are probably thinking of taking a loan for personal development, perhaps a car or for that business you have researched and whose details you have worked out, or better still a mortgage. Now, this post is for you. I would strongly recommend that you don’t do it. I would advise that you give those debts a wide berth and save instead.
I could write 5000 words on this topic but that won’t be now. You may think you can afford it or your story would be different. It very well may be though the chances of it are minute at best. However, this is not primarily about that. Its about the financial culture you set for yourself. You could divide senior colleagues in your field into two categories: those with a borrowing culture and those with a saving culture. I would further ask you to apply to measures : level of peace and level of independence, to each of the groups. I don’t have to tell you what these measures look like after 10 years for the two categories.
Much later in life once you have notched a few years of financial experience under your belt, once you have experienced debt free living and the power of compound interest, you may review this position and make a personal decision.
Perhaps, if you are lucky, you may also learn that real financial freedom is not primarily the result of how much you earn but the result or your financial attitude, principles and culture.
You are thinking of taking that loan? Don’t do it. Instead save. I would be remiss not to tell you this. Now I have. The choice is yours whether to listen or not. I certainly wish I had listened to someone who told me this earlier in life. Consider this a gift from me and thank me later if you opt to heed the advice.