How to Borrow and Spend Smart

Introduction by Host: Dr. Gee

Today, there are more options than ever to get started with investing. With all the technological advancements and financial opportunities, there has never been a more exciting time to begin investing. So how do we borrow and spend that money in a financially beneficial way? Let’s discuss!

Point 1: Borrowing

When we think of borrowing, we may think of being ensnared in debt. However, borrowing is not always bad. If you have an idea that you have planned out and prepared for, but you have no money, then it may be ok to look at borrowing money to get you started. When you get a car, you agree to pay for it in increments. Borrowing can work in the same way, especially when you have steady income.

Point 2: Education Debt

People borrow money for a variety of reasons, but let’s take a look at a common one: education debt. When it comes to borrowing in this case, there are a few things to keep in mind. One is to borrow realistically. Know what you are able to pay back within a set time frame and do not borrow more. Research what jobs you can get with your degree to establish that frame.

Point 3: Credit Card Debt

Another source of debt in America is credit card debt. Most interest rates for credit cards are over 15%. If you are just using credit cards to buy new clothes or fancy food, is it really worth paying an extra 15%? I would say no. Wait until you have enough money on your own, and avoid borrowing money for personal reasons through credit cards.

Point 4: Tips for Maximizing Spending and Limiting Debt

The number one tip I would give to limit your debt is to keep track of your finances. Know how much you are able to bring in, and do not spend more than that. Budgeting is vital for your financial health. Another tip is to always be seeking for better ways of using your finances. Don’t settle into a pattern that is destructive for your life. Always be evaluating how you spend your money.

Closing Thoughts

Life is not all about money. However, if you are spending, then be ready with the ability to pay for it. If you have responsibility, do not take it for granted. We have a long way to go, thriving friends, but we have to work it out together. As we end our financial literacy series, it is now time to put what we have learned into practice. Let’s move forward together and thrive in our finances!

By Dr. Gee, Success and Holistic Wellness Advocate