Taking out loan is actually saving inside out

Take a loan and save!

As a child you have probably often heard from your parents how important saving is. Maybe you even got a nice savings account on your 18th birthday. Saving is certainly a noble activity. Who saves it has what, the well-known saying goes, and nothing is less true. On the other hand, saving can sometimes take a long time. Whoever puts aside a decade every week can buy a beautiful car in fifty years. It goes without saying that not everyone wants to wait that long.

 

Hence, in addition to saving, one can also take out loan . Actually, saving and take out loaning are the same. You put a fixed amount apart every so often to pay for what you want. Only where you sometimes have to wait for years to save until you can buy something, that does not have to be take out loaned. Actually, take out loaning is therefore a kind of inside-out form of saving. You buy first and pay later.

The advantage of taking out loan

The big advantage of take out loaning is of course that you do not have to wait years before you can buy your dream house or your dream car. Of course, the disadvantage is easy to guess: If you take out loan an amount, you will have to repay this amount in its entirety. This can be done in two ways: with the aid of a revolving credit or a personal loan.

Two ways to take out loan

With a revolving credit you can always take out loan up to a predetermined amount of money. It is a kind of piggy bank where you can withdraw money and put money back in. How long the loan lasts can not be predicted in advance. You can always pay back the take out loaned money, but you can also withdraw money you have repaid. In addition, the interest on the amount you have take out loaned can be higher or lower.

Less flexible, but more transparent

What is also possible is taking out a personal loan . In this case a pre-determined amount is paid to you once. You then pay a monthly amount, plus interest, until the loan is paid off. You can not withdraw money that you have repaid here. On the other hand, the interest rate for the entire loan is fixed at one percentage. You will therefore not be faced with surprises and will know exactly when the loan will be repaid in its entirety.

If you can save, you can take out loan

Saving is nice, but of course we do not want to wait too long for some things. That is very normal. Life is there to be lived and a loan can help you on your way. The ability to save money is literally an enriching trait. If you can save well, there is actually no reason why you should not take out loan. In fact, when saving and take out loaning, you do the same thing. The big difference is that when you take out loan, you can immediately reap the benefits and do not have to wait years before you can enjoy your wealth.