Say you’re a walk to the mall with friends. Then stopped at a boutique that is conducting the sales promotion or sale. Most likely you will be tempted to buy. Especially if his promotion to 50 percent.
It looks great, but the original price of the goods were actually expensive. Call it branded bags. The price there are tens of millions. However, due to a 50 percent discount you become hooked and also purchased, with a variety of reasons, including want to own branded goods as prestige. What happens then is remorse. Because, in fact you do not need a designer bag and more than that, is not included in your financial planning. Your financial decisions based solely emotional.
Second Impact, financial decisions should see the impact of short, medium, or long. Suppose you do not already have a house and still live in a rented house. On the other hand, rent a rented house was big enough. So can the question arises, whether to continue contracting, while waiting for an increase in income and when able to buy a house, or now you plan to buy a house with a bank loan.
The choice of contract or buying a home will obviously have an impact long term. That is, if you buy a house, one of your financial goals will be achieved. However, on the other hand, you also will bear the debt of mortgage loans are also long term.
So, which one is better? It’s simple. If you keep a rented house, you do not have debt, but also do not have a home. While on the other hand, some income will be eroded to pay a rental fee or contract houses. As for if you buy a house, you need not pay rent anymore, but your expenses will be allocated to pay the loan installments. Expenditure on the one hand with assets on the other side. Clearly this is a better choice.
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Posted in Business plan | Tags: Business, Finance, Financial plan, Financial Services, House (TV series), Loan, Mortgage loan, Renting