A Properly Used Loan Is a Powerful Tool

Society’s views of frugality seem to be somewhat cyclical. There are often times when people don’t care about spending too much money. These are often the times of vast economic booms. The bubble of high-tech internet culture is one of the more recent examples. But there’s often a swing to the opposite direction once the bubble bursts. People end up with far less money than they’re used to. And this turns into a larger concern with money than they might have faced otherwise.

The cycle doesn’t just continue within society as a whole. People also tend to jump between extremes in their own life. Thankfully there are resources available to help mitigate the risks. Many people find that looking for personal installment loans online can make the process quite a bit easier than it’s been in the past. But people are often unsure of when it’s time to look for a loan.

The first thing to understand is that it’s important to pay off loans as quickly as possible. A loan is an amazing tool when it’s properly paid off. But if one is negligent in doing so it can push people in the exact opposite direction.

Homes are usually a solid investment

It’s not always easy to tell the difference between what’s useful and what’s not. But one of the best ways to do so is by judging the underlying nature of your situation. In short, it’s a good idea to ask what any given loan is going to be used for.

There’s not always a simple way to know what is a useful target for loans. But one can find a few useful metrics to judge things by. The nature of a task impacts whether one should consider a loan. One of the biggest questions people should ask is whether it’s something which will increase the value of a home.

Remodeling a house isn’t just an investment in one’s own future. It usually increases the resale value of a home. Even something like putting in resources for raising chickens can make a home more valuable. And, of course, this can also save money in the long term by increasing self-sufficiency.

But even seemingly non-economically beneficial factors can pay off somewhere down the line. A new couple might want to put in more rooms as they consider growing their family. Or someone might even just want a guest room. Maybe later in life, an extra room for an aging parent can prove useful.

Some of these are long-terms plans which one can sit on and consider for a while. This makes it a lot easier to plan around. But others, such as ailing family, are a much more immediate situation. Both are quite dissimilar in that respect. But they call for the same general solution.

A loan of some sort is needed to rectify the problem. This is also why a little advance planning can go a long way. Because the solutions are the same, one can essentially plan for the unexpected.

Deciding on a loan and moving forward

You should also remember that a loan can be a chance to not just do something but to do it right. And this stage will depend on how one approaches that fact.

You can begin by only asking for what’s needed for a minimal amount of work. But often time what’s worth doing is worth doing right. It’s fairly common for the funds needed to perform minimal and perfect work to be fairly similar. When asking for a loan, you should consider whether it might be an investment. Something to not just fit an immediate need, but later resale value.

You should also consider what home maintenance skills you bring to the table. This can often offset some of the costs. For example, someone with woodworking skills can contribute to construction even after it’s finished. This can make some dramatic changes to the overall value of a home.

And while not most people’s intent, it can often make flipping it for a much greater profit a realistic possibility. It’s even possible to rent out newly created space later on once an immediate need has been taken care of.


Married for eons, mom of 10, Nonnie to 26 with a great grand coming soon, to add to the mix. Avid reader and photo taker, scrapbook queen and jewelry maker. Collector of dishes, planners and pens. Lover of animals, chocolate and spends…long hours soaking in the spa tub (with a fully charged tablet, diet soda, and grub). She’s worn lots of hats, tossed most to the wind, and doesn’t mind starting all over again. Every day is a new adventure…come along for the ride!

Libby has 4412 posts and counting. See all posts by Libby

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