Money! Money! Money!

Money is hard to come by. And I know how hard it is to save up just to let it go in fulfilling my dream in getting my first degree. I will never understand people who are desperate enough to borrow money from family members or friends – promising the lenders that they will pay back in a short time. Now, how short is short?

Don’t these people realise that they have to pay high interest if they were to loan from the bank? Apparently, there are some heartless creatures who are just plain selfish!

The rule of thumb is that:
Money you have now is worth more than the same amount you have in the future.

So, it does not make sense to lend out $5000 in 2009, only to get back the same amount ten years later.

Let's calculate how much you'll earn if you put the $5000 safely in the bank with 2% compound interest for the period of 10 years.

Formula: [$5,000 x (1 + 0.02 interest)]^10 years = $11,904.24

It's a lot of money, don't you think?

To all kind-hearted lenders out there (sans the loansharks who are a lot more smarter), don’t fall into this vicious trap. You’re not helping the borrowers but you’ll only encourage them to keep on borrowing.

Remember, there's always EZY Cash that they can rely on.

:)

Note: I came from a poor family so it irks me that people take others for granted and hurt them in the process of borrowing or lending. My Mum and Dad taught me to make do with what I have, not what I don't. I hope YOU will make do with what you have too.