Grasscutter
Registered User
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Has anyone every heard this expression before?
I was raised not to borrow if it was avoidable and it's a philosophy I've always lived by.
However a very money-savvy (she works in accounting) friend confused me this week by giving me her philosophy which is the opposite. 'Never spend your own money, spend the bank's'. While she wouldn't borrow at a high rate obviously - even if she had the savings to renovate her home for example, €20,00 she would still borrow the money - because she says that way you have your renovation and still have your savings. Yes you pay more in the long term but her theory is realistically you would take longer in time to save that €20,000 again and may never do it because saving is harder than spending. She borrows regularly for things like holidays even though she could pay for them in full - my head is fried trying to work out is her method more sensible or mine. I rarely have savings because I pay for everything up front - when I accrue a decent amount I change the car and they are wiped out.
I'm keen on a new suite of furniture which I could buy - or get at 0% APR over 3 years. My very strong instinct tells me purchase it in full -because that's what I'm used to whereas my friend says I'd be nuts not to go for the 3 year option.
I was raised not to borrow if it was avoidable and it's a philosophy I've always lived by.
However a very money-savvy (she works in accounting) friend confused me this week by giving me her philosophy which is the opposite. 'Never spend your own money, spend the bank's'. While she wouldn't borrow at a high rate obviously - even if she had the savings to renovate her home for example, €20,00 she would still borrow the money - because she says that way you have your renovation and still have your savings. Yes you pay more in the long term but her theory is realistically you would take longer in time to save that €20,000 again and may never do it because saving is harder than spending. She borrows regularly for things like holidays even though she could pay for them in full - my head is fried trying to work out is her method more sensible or mine. I rarely have savings because I pay for everything up front - when I accrue a decent amount I change the car and they are wiped out.
I'm keen on a new suite of furniture which I could buy - or get at 0% APR over 3 years. My very strong instinct tells me purchase it in full -because that's what I'm used to whereas my friend says I'd be nuts not to go for the 3 year option.