Do I Need A Loan? 5 Reasons Why You Should Borrow Money

Do I Need A Loan? 5 Reasons Why You Should Borrow Money

5 Reasons Why You Should Borrow Money.

Oftentimes when people hear about borrowing or debt, they quickly tag it as something bad. 

Sometimes people even think that people who take loans are “broke or poor”. This is not true. 

There are good reasons why you should borrow them and in this article, I’ll tell you about 5 of them.

Here are 5 good reasons to borrow money: 

  1. To Invest In Your Education:

Investing in yourself is one of the most reasonable things that you can do for yourself. One of the best investments that you can make. 

For this reason, it is not a bad thing if you need to borrow to invest in yourself. We all know that going to school does not come cheap and if you’re not so financially buoyant at some point, you may need to borrow to finance your education. The point is, borrowing to pay for your education is a good investment that will yield future returns.  

  1. To Get  A Fixed Asset For Your Business, E.g A Building:

As a business owner, owning your own building should be one of your goals as it can increase your business cash flow and overall net worth. 

This is because the amount you spend on rent monthly or annually will be poured into your business and it’ll increase your income.

In other words, owning a building saves you the cost of paying for rent every month, increasing your revenue. 

Even when you are ready to retire, you can sell off the building and make more money. So you see, borrowing to get a fixed asset like a building isn’t a bad idea at all.

  1. To Buy A Personal House:

One of the basic needs of humans is shelter, a place to live even if it’s not 100% comfortable.

However, the cost of renting a shelter can be discouraging. But what can we do? We all need to rest our heads somewhere.

Just like buying a building to run your business, buying a home is a great way to boost your net worth. Especially when you have a stable job that can help you pay back bit by bit.

Also, it gives you the satisfaction of being a homeowner. This does not sound like a bad idea at all. 

  1. Equipment For Your Business:

A building is not the only good thing that you can purchase for your business. You can buy equipment.

The world is evolving and from time to time, new tech gadgets are being released into every sector. Don’t you think getting one or two tech gadgets can benefit your business?

Every business needs expansion from time to time and during this expansion, you will need to buy new equipment to increase productivity. This is a good reason to take a loan.

After all, increased productivity equals increased income. Isn’t it? 

  1. Merge Loans:

Yes, you can merge loans with a loan. While this is not something you should practice all the time, it’s still a good reason to take a loan.

For example, after taking different loans to invest in your education, business, and other personal things, you may have outstanding loans to several lenders. Listing them may be a bit of a hassle for you. Therefore, it is sometimes reasonable to take a new loan to settle all those other loans. This leaves you with just one loan, you just merged all your loans, reducing your stress. 

Bad Debt:

Of course, let’s not forget that there are bad debts.

Bad debts are loans you take to buy things that depreciate. E.g Clothes, Cars, Shoes, and so on.

These debts are more of consumption than investments. It is wrong to take a loan for things like this except for exceptional reasons.


Debt can be a good thing depending on how you use the money. If you use the loaned money well, you shouldn’t have issues.

Listed above are 5 good reasons to borrow money.