5 Minutes Free Writing - Not Another Loan
Good morning all, doing my 5 minutes free writing with prompt - Not Another Loan. Hope you enjoy the story.
In financial management, we talk about net worth, as this value will give us a clear picture of our financial health. As the formula to calculate net worth is
Total Asset - Total Liabilities
Assets needs to be something we own and fully paid off, not own in name. Liability for many of us usually comes in the form of loans, usually from the bank. Even a 24 months interest free instalment program is also a liability. Remember assets are items that belongs to you. Loans from bank needs to be paid off and there's using a collateral we pledge to the bank like our house, our car.
Thus, when we purchase stuff and we are not considering another loan, I think we are doing okay. And if you ask yourself not another loan as an option could also mean we have a gauge of our financial health.
So are you someone who is a fan of taking a loan? Or you are somebody who gets sick when you think of getting a loan and ask not another loan. Of course, I am the later.