In 2018, living normally is defined by the way you handle your money. Monetary Transactions have become a part of our daily life. Such is the importance of money today that the absence of it can be harmful to us and can cause a lot of difficulties. In such cases, we opt for the best way of lending the money from someone. We can take the money from our near and dear ones. But not always! Our wants will never reduce but the people around you will reduce if you keep asking for money. Hence people began opting for professional lending.
Professional lending today can be taken for travel, education, medical expenses, renovating or purchasing a house, running a business, owning a vehicle and many more. These loans are very helpful as they help us at the time we need funds for the certain reasons. The institutions also allow us to repay this loan at an easy pace with lower EMI’s. Hence life can resume at a normal pace along with debt. But why does a life with debt seem normal? These reasons mentioned below will answer your doubts on the same;
Inflation is the prime factor:
With every year, income is not the only factor that increases. The standard of living, the prices of commodities and everything else also has been increasing at a rapid pace. More so, this also means that your expenses are at some point of time bound to be higher than your income. Hence at these crucial moments, we might end up borrowing from a Bank or NBFC.
Investments also cost us a lot:
In the past 5 years, the importance of investing in the market has been on the rise. Most of us have been investing actively in the stock market via stocks or mutual funds or even insurance. Also we have begun borrowing from a Bank or NBFC via a home loan in order to purchase a house. These loans are long term in nature and hence we would keep a debt with us which can last up to 2 decades.
Uncalled emergencies always affects us:
One thing we cannot judge is when an emergency can strike. These emergencies often require a lot of money in order to solve and get through with it. Sometimes we do have the money in the form of savings which can be used to counter these situations. But for a majority of times when we don’t have money, we often end up borrowing from a Bank or NBFC. Hence uncalled emergencies increase the debt in your life.
Wishes and Aspirations:
We humans have never ending wants. Our wishes always keep increasing and these can be fulfilled only with cash. Most of us can only fulfill certain wishes in the income we have. For the rest of our dreams, we end up borrowing from a Bank or an NBFC. These wishes can be anything from taking a personal loan to travel to a new destination abroad, a dream wedding, buy that dream car via a car loan etc.
Overall, there are many more reasons why our life is now normal with debt but with careful planning and managing expenses, everything can be sorted rightly.