We often have aspirations whose financial obligations are beyond our reach, this the Art of Strategic Borrowing.
We may wish to buy a home, open a business, fund education, among other things, but our current financial capacity may be limited.
Also read: Smart Borrowing Essentials
Instead of canceling the plans or putting them on hold until we gather the required financial resources, taking out a loan may qualify as an ideal solution.
For loans to serve their purpose effectively and align with our short-term and long-term financial goals and overall well-being, it’s important to do the following first:
✔ Evaluate your current financial situation
✔ Explore alternative sources of funding
✔ Clearly identify the purpose of the loan
✔ Research lenders
✔ Understand the terms and conditions
✔ Determine the total cost of borrowing
✔ Assess your repayment ability
✔ Plan for contingencies, to handle unexpected changes
