Personal Finance 102–Keeping Costs Under Control
Without proper planning we can fall short of saving the required money needed to achieve some of our goals. Things like a house, a reliable car, and a post secondary education are thing we may have to spend money on that we don’t have. Borrowing money to purchase something, that will put more money into our pocket then it will take out, would be an example of a good use of debt. More on debt will be discovered in Course 5 Purchasing Using Credit.
When we put money to work for us we want our money to earn interest. When we borrow someone else’s money to purchase things to help us achieve our goals we have to pay the lender interest.