Big Shopping Rules: Buy On Credit Or Save?

It is said that loans are a trap into which those who want to get everything here and now fall. But is it really? After all, many businesses are starting to move up at the expense of credit. It is often impossible to start your own startup without a loan, which is essentially an investment from large partners. It happens that entrepreneurship begins to bring real profits only a few years later.

But consider loans for individuals, because it is more mundane and usual. When we want to buy a car, an apartment, or even some household appliances such as a straight car or laptop: what will be more profitable? Buy or save money right away, save and afford the dream purchase only after a certain time? There are nuances to this question, so together with the Payday Depot service, we tried to find an ambiguous but thorough answer to it.

When is it profitable to buy on credit?

Inflation "eats" your budget while you feed a pink pig on the shelf instead of your own dreams. This is the main reason to buy what you want today. Inflation looks on store shelves as a rise in the price of goods, while your salary remains stable and the same month after month.

Therefore, given the current economic situation in the world, lending for large purchases can be your cure for this phenomenon. You buy the product at the price that was at a certain point in time and pay the money gradually, over time. Nuance: interest on the loan. Be careful that they are not higher than the potential price increase.

The second important point is to satisfy your emotional needs. If you need a car or a new TV now, this purchase will bring you some pleasure, and you will not have to wait long for the thing to become yours. 

Arguments to save first, and then go shopping

There are also advantages to waiting for loans and saving money until the required amount is collected:

● You have complete control over your budget.

● The probability of an impulsive purchase, for which you then have to pay with your own finances, is excluded.

● You can also save on interest and loan service payments if the product has risen in price by no more than this amount.

The downside is that it is easier for some people to make a mandatory payment than to purposefully defer the same amount. That is, if there is a lack of willpower and motivation, it can happen that the purchase will be postponed for a long time, often indefinitely, and it is frustrating.

However, there are things of urgent need: housing or a car. If you pay rent and try to save some more money, these savings may end up being unprofitable, because at the same time you could already arrange comfort in your own home, rather than paying someone else.

But even if you choose to save instead of buying on credit, count all the punks again. It is better to do this in writing to get a clear financial plan for both situations and to compare not only emotional arguments but also specific figures. This will make it easier for you to make a final decision.

There is no ready universal answer. Only a rational and balanced approach to the case can help you significantly and move the scales to one or another answer, depending on the situation, needs, time constraints, your real and potential capabilities, and so on.

Finally, you can consider the option when to get what you want, you find new ways to replenish financial resources: go to another job or get a raise, open a new business or sell things that you no longer need. Such motivation can be your start to something big, to your success and financial independence.