There is ‘Good Debt’ and there is ‘Bad Debt’.
Bad Debt is Debt that takes money away from you and makes you work harder to repay it.
Good Debt is Debt that brings money to you and makes your money work hard for you.
Huge Difference! If you find an investment or business venture that will pay you MORE than you pay for the loan, then that is Good Debt! Enjoy the article! ;o)
Cheers…Amanda van der Gulik…Excited Life Enthusiast! ;o)
Investing When We Have No Money – Guest Post
When you are in school, especially at a college level, it is essential to start to think about your finances and how they will affect your life once you have graduated and gone on to a career in whichever field you have chosen.
Loans are very normal for college students as the price for education goes up every year and many students feel that they need these loans to have a comfortable life while attending school. But eventually, you will have to pay down these loans, but there are options for re-payment that may help you to pay down your debt.
When we are young, we often live very inexpensively and we have a lust for life that we may slowly lose as we grow older. Youth is a great time to take advantage of your life, especially when it comes to investing in ventures that we see that can make use very rich one day.
Often these ventures, such as investing in a fledgling business on campus or backing a friend’s new company, require money. Usually, it is ill-advised to take out loans, but sometimes, national payday lenders can be just enough to get us in on the ground floor of a new venture that will lead us to a comfortable living down the road.
Taking a loan may set you back in interest costs, but if you can use it to create even more income for yourself then it can also change your life depending on the opportunities that are available to you.
In the Internet age, many of the larger, more successful startups were concocted during college years (think Bill Gates) and if it weren’t for young investors taking educated chances financially by taking out loans or asking for money to create these opportunities, these companies may have never even gotten off the ground.
Money is the key to investing and it often takes a loan to get the ball rolling in a situation where we are not established and are a struggling college student. Just make sure your investment will pay you more than your interest payments cost you!