Borrowing money may seem counterintuitive when you are already financially well-off. After all, why would someone with more than enough money need to take out loans? It may not be obvious, but there are strategic reasons to use loans even when you’re not hurting for cash.
Financial well-being is not solely about the assets you possess but also about effectively managing your financial resources, including money from loans. This is true anywhere in the world, including Singapore. Here are good reasons why going to a money lender in Singapore makes sense even when you’re financially healthy.
Emergency expenses
Sometimes, unexpected situations can take us by surprise. This situation may involve a sudden case. Let’s say one of your family members has a medical emergency, or your room collapsed due to seepage of water. In these emergencies, a one-month loan can immediately give you the funds needed to address the situation.
Taking out loans when you are financially well-off can be necessary and unavoidable in emergencies. Let’s say one of your family members has a medical emergency, or your room collapsed due to seepage of water. In these emergencies, a one-month loan can immediately give you the funds needed to address the situation.
Personal loans usually have a fast approval process and quick disbursement. Some lenders even transfer the loan amount directly to your bank account the next business day. This makes them especially valuable in emergencies or when quick access to funds is essential. Even when you’re financially comfortable, personal loans are an efficient solution to an urgent money problem.
Secondary needs
Often referred to as “wants”, secondary needs are goods, services, and activities that enhance one’s quality of life, fulfil personal preferences, or even strengthen social bonds and relationships. These include travel and leisure, home renovations, a vehicle, education and skills, and luxury items.
These needs are not essential for basic survival but contribute significantly to overall well-being. Taking out loans to cover your secondary needs is a wise decision for several compelling reasons even when you’re financially well.
Financing vacations for travel adventures is a common secondary need. Imagine you have long dreamt of having a large RV to take your family to travel around mainland Southeast Asia. It’s pricey, you still have bills to pay, and you don’t want to empty your family savings. At the same time, you want this dream to come true.
Plus, you have a steady income stream, so buying one won’t completely financially cripple you. In this case, taking out a loan through a licensed moneylender is the best option.
In another example, let’s say you want to make your dream wedding come true. You earn enough and have saved enough for it. But in planning it, unexpected and unavoidable additional costs came up. Instead of taking out money from your salary, you can take out a small loan for these unforeseen expenditures.
In both cases, taking out a loan through a licensed moneylender is the best option. But don’t just go to any moneylender. Do your research and look for a licensed moneylender who would provide clear terms and reasonable interest rates. Also, make sure that they have well-managed repayment schedules to prevent any hidden fees or surprises.
Find the best personal loan for you
Financial well-being is not just the ownership of assets, but also the effective management of personal financial resources. And sometimes, that means availing the services of a money lender in Singapore. Overcome unexpected emergencies and make your long-held dreams come true without sacrificing your financial stability.
