If you are salaried to meet the casual expenditure you would have borrowed from your friend.
What happens really after borrowing.
The borrowed money you are spending does not belong to you. Hence you never find 100% happiness in it and from the next month’s salary you are going to repay hence that portion of the salary will not belong to you. In both nature of transaction there is no yours in it.
The borrowed money is not your money and that portion of earned money will not be your money. So, borrowing never brings happiness in the first place. If you know this, you never borrow for casual expenses.
Using credit cards, you pay exorbitant interest. Why do you need to spend money on credit cards when you have the same amount of money in the form of saving or gold. Pledge gold or take a loan on your savings. People who have money in investment but tend to spend on credit cards and pay huge interest. The pattern of spending will determine your future solvent position and happiness.
Home loans are always attached with a long repayment period and if you calculate the interest, it will be 1.5 times of the loan amount. Example, If you borrow 1 lacs, your interest is 1.5 lacs and you will pay a total amount of 2.5 lacs. Suppose you buy a property for 40 lacs then the interest is 60 lacs and you will pay a total of 1 Cr. You don’t know how much your house will fetch at the end of loan tenure may be double but still you lose 20lacs. How foolish right. Suppose if you work out an opportunity cost. The same house you can get for Rent by one-third of the EMI. Calculate and see, how the world fools us just triggering your primitive brains telling you are unsafe without your own place.
Buying home on loan and doing lavish expenditure. To whom you’re trying to prove?
No one listens to your style of living except your debts.