A small question with huge impact and rarely considered with science: How much can I borrow?
The fact is, general laws apply to borrowing and lending and general preoccupations apply to business monitoring, property purchasing and implications in how we’re using our money.
Situations consume us and finer details get ignored in exchange for some immediate relief which, in that phrase of thinking, we’re all capable of looking to the alternatives that shout out and shine out to controlling a problematic situation. Be it business or personal, when we’re hooked in on an emotional level it’s the equivalent of cute animals online – the nasties in between get ignored.
We all like a good deal, our finances are no different, and, we all have a natural gravitation towards the internet as first port of call for research (if it wasn’t for the internet you wouldn’t be reading this) – we get a sense of what we can do, where we can go, what we can have, how much it costs – and when the results are on target of expectations our optimism is kept alive.
If something is available now, surely the next time around, the business will be in a better position, the property will have increased in value, so even better offers will apply. The internet gives validation when it suits us. It goes towards the idea (for our finances) that the future can only improve.
I wish I could give out the same magical fix. Instead, as someone who in part acts as a firewall, I revert to the magic of finance science which has its fundamentals in the management of risk. Lenders have their systems and consumers have their ‘systems’ or patterns, both influence each other in terms of pricing. Without correct measurement by both elements, personal goals and lender goals equate to totally missing the goal.
Article credit: Copyright SUF © 2020
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