Long-Term Savings… Loan Repayment?



It is not easy to save money in most cases. It requires a great deal of willpower, because in everyday life it is necessary to give up various things that bring joy or ease everyday life. Even if the monthly income is medium or high, you want to spend all your money right away, but savers are often on the right track with a pre-set goal. If money is being collected, it is usually done to buy a larger product afterwards, or to feel safe about your financial situation. Thoughts on achieving these goals help to continue to save money and not give up the moment, but if it is clear that long and hard-earned money will have to be immediately returned to lenders, this process may be even more psychological.

Rarely would it be motivated to save money, which cannot be spent for its own needs, nor to keep it for days off, but borrowers are quite often in this situation. It is logical that the loan taken will have to be repaid and if the borrower was not able to save the money before, because there was no willpower, then it would be more difficult to do it after taking the loan. If the money will be deposited for repayment of the loan, one should also take into account the fact that you will have to collect not only the amount of money that the borrower received, but also additional interest payments. From this it can be concluded that collecting credit for repayment is much more complicated and disadvantageous than simply collecting the loans, so you should not take the loans at all.

Many borrowers are mistaken in believing that they are making money to repay the loan, because they will simply be forced to do so. They comfort themselves with the idea that if there are no other exits and the credit will have to be returned, the austerity measures will be self-explanatory and will make it easier to limit themselves. It is this process of thought that leads many borrowers to serious financial problems. Initially, it manifests itself as the inability to repay loans and extensions of time, but later as taking new loans to cover old ones. Such actions only make the repayment of the loan more expensive and it is even more necessary to limit yourself to cover your debt. It is not easy, on the contrary – both physically and emotionally very difficult. In order to prevent this situation, cash savings must be made on a regular basis, starting with their first salary.

The formula of financial prosperity is quite simple

The formula of financial prosperity is quite simple


Income must be higher than expenditure. If this is the case, this difference will result in savings that will create some kind of financial independence from monthly income. This means there will be no need to wait for the next payday to buy the necessary goods, nor will you have to worry about sudden unexpected expenses that cannot be covered. It should be remembered that savings must be continuous. This means that not all savings can be spent on the first spontaneous idea of ​​spending money. In such a case, the provision of savings should start again and it may happen that immediately after the money is issued, there will be some urgent, unexpected expenses.

If the money is accumulated all the time and there will be stable savings, loans for small or medium-sized ones, unexpected will most likely not be needed. It will be much easier to save money if you know that it is intended to meet future aspirations and not to settle past financial liabilities. Shooting should be a habit, not a campaign-like event.