Tired of feeling financially dumb? Fed up with watching your hard-earned wages get increasingly eaten up by rising household bills? Just starting to believe that there’s something you must be missing – a secret that everyone else is privy to but you’re being kept in the dark about? Well it might not be as hidden as you first thought.
The concept of good debt and bad debt has been around for as long as anyone can remember, but many people still refuse to believe that the financially-secure take advantage of loans. But rather than seeing borrowing as the last option for those in desperate need, those people who are savvy with their finances actually exploit the power of loans to facilitate investment.
Any investment that reduces your weekly outgoings has got to be good, and there can’t be much bigger weekly outgoings than what is spent on fuel. If it seems that you’re simply at the mercy of the power companies then it’s time to consider borrowing to invest in energy efficiency. Light bulbs offer the perfect introduction, because you can fit them yourself thus saving you even more money by avoiding the costly installation charges of, say, solar panels. Energy-efficient bulbs last considerably longer than standard bulbs and unlike solar panels you can take them with you if you move.
Just do the sums – find out how much you’ll save in electricity costs and replacement bulbs. Compare that with how much the loan repayments will be and if the sums look good, go for it!
Don’t forget, lenders are far more inclined to provide money for these sorts of investments, as they realise that you’ll be in a great position to keep up with the repayments, since your outgoings will be reduced.