Borrowing money is probably one of those things that we don’t talk about even tho we think and worry about it. Because while taking on debt is not necessarily a bad thing, it’s something that we should approach with caution. But hey, little did most people know but there are actually some mid-term financial goals that can be worth borrowing for.
Starting a small businessSingapore is a great place for startups, and if you’ve got a brilliant business idea, sometimes a loan from a money lender can help you get it off the ground. Maybe you’ve always dreamed of opening that nasi lemak stall at Maxwell Food Centre, or perhaps you’ve got a tech startup idea that could be the next Grab or Carousell. While it’s risky, borrowing to start a business can pay off big time if you’ve done your homework and have a solid business plan. Just make sure you’ve crunched the numbers and are prepared for the challenges of entrepreneurship. Remember, even the kopitiam downstairs didn’t appear overnight! Buying your first homeAh, the Singaporean dream – owning your own HDB flat or condo. It’s a big step, but it’s also one of the most common reasons people take out loans. And you know what? It often makes sense. Renting in Singapore isn’t cheap, and property here tends to appreciate over time. So, while a home loan is a big commitment, it’s also an investment in your future. Plus, there’s nothing quite like having a place to call your own, right? Just imagine – no more landlord telling you can’t hang that giant Merlion poster in your living room! Investing in a reliable vehicleNow, we know what you’re thinking – “In Singapore? With our amazing public transport?” But hear us out. For some people, especially those with families or specific job requirements, owning a car can be a necessity rather than a luxury. If public transport is eating up hours of your day, or if you need a vehicle for work (hello, Grab drivers!), then taking out a car loan might actually save you money and time in the long run. Just be sure to factor in all the costs – COE, road tax, insurance, and don’t forget about those ERP charges! Home renovations or upgradesLast but not least, let’s talk about sprucing up your humble abode. Whether you’re looking to increase your home’s value for future sale, or just want to make it more comfortable for your family, some home improvements can be worth borrowing for. Maybe your kitchen is straight out of the 1980s and needs a modern touch. Or perhaps you’re thinking of adding a home office now that WFH is becoming more common. These kinds of upgrades can not only make your daily life more enjoyable but can also increase your property’s value. ConclusionAt the end of the day, if you’re ever in doubt, don’t be shy about seeking advice from a financial advisor. They can help you weigh the pros and cons and make the best decision for your unique situation. Remember, the key is to borrow smart, not hard. |
