In general, debt is perceived as something negative and tries to avoid it, but today we have to tell you that this is not always the case! There are different types of debts and today, at La Haus, we will help you identify the good ones that allow you to profit from the bad ones that all they do is lead you to lose money.
To recognize them, you always have to think about the benefit that you will obtain in the long term, according to the time in which you will pay the value of the obligations and the interest rates applied. A basic example that can help you is to imagine the debt as a friend: is it like Juan with whom you only go out partying on weekends and run out of money for the rest of the days, or like Maria with whom you met your friends? Savings to put the venture of printed t-shirts?
Still not very clear? We explain it to you in detail:
If the loan generates a profit that lasts beyond its maturity, you have a good debt because what you invested will return to your pockets and generate profits in the long term.
Good debts will also grow your wealth because they are focused on starting or growing a business or acquiring durable goods.
On the other hand, if the term of the obligation is greater than the life of the product, a debt is considered bad. That is, it is a debt without profitability that takes away your financial freedom, you lose money!
In general, they serve to acquire whims and not necessities, something that is not durable, and they have high interest rates where you end up paying much more than the initial value, becoming a pointless expense.
Remember that it is better to wait to buy something that is not urgent, such as clothing or beauty accessories, than to buy it now at six or more installments assuming unnecessary interest. An excellent practice is to make most of your credit card purchases at a fee, it is the best way to control what you have and not spend more than you should.
In addition, at the Haus we have some tips for you to avoid bad debts:
- Make a list of all your fixed debts, month by month.
- Determine which debts that have become expenses you could eliminate because they are not really necessary.
- Before spending, analyze if it is really a need or an unnecessary pleasure that you want to give yourself.
- Identify the expenses that you could mitigate or minimize without any problem. For example, if you have a 20 GB cell phone plan but you only use 10 GB, take the opportunity to reduce the plan and its costs.
- Subtract your expenses from your income to determine the remaining money flow you have month to month.
- With the remaining money, plan a voluntary savings or invest in assets that generate extra income or profits.
- Set long-term goals, envision a purpose for the money saved at a certain time.
- Make this practice a habit until the end of the year, analyze the improvements in your finances and keep motivating yourself, applying the same method until you achieve the much desired financial freedom.
Good consumption habits will prevent you from going through unnecessary financial difficulties and achieving your future goals. Start little by little, at La Haus we share financial tips to help you get to the top of what you want.