"I have decided to save about 20 lakhs a year," he said. You have enough income to save like this. I have tried to save before but often do not. So instead of waiting until the end of the year, I decided that what I really needed to do was learn how to do it right. I have not yet thought about what to do with the 20 lakhs I received. But with good credit, you might find exactly what you need. Can you discuss the pros and cons of such an arrangement? ”

To answer this question, let me first calculate the interest rate. For 20 lakhs, the interest rate is 1.8% per month, 36,000 per month. The principal will be repaid on a monthly basis (depending on how the interest rate is calculated), with interest rates ranging from 250,000 to over 400,000 per annum.

I do not do this kind of loan-saving work. Because you have to pay interest while living for free. Another thing to consider is why you did not save money before. The reasons for not saving money need to be carefully reconsidered.

In the past, if you had money, did you save because it was easy to use? Is it because you can easily borrow from others and get out of debt? If you have money, do you want to buy this or that? Is it because you want to travel? Is it because you want to spend and have fun?

So it's a big mistake to make a loan. Because when you get 20 lakhs from the loan, you have a small amount of money in your hand. The urge to spend and spend is becoming more and more difficult. The subconscious is thinking about how to spend this money. Even when I had about 200,000 kyat, I could not save money. When you have about 20 lakhs, your desire to spend will increase 10 times.

If you can't control your mind when you have 200,000 kyats in your hand, it is difficult to control your mind when you get 20 lakhs. Phone crazers are going to buy iPhones. Alcoholics are more likely to buy expensive alcohol. Gambling craze will make you gamble more. Female crazies are on the rise.

In that case, you could lose out on interest and even run out of 2 million Kyats before paying off your debts.

As an exception, when you get 2 million Kyats, you will gain morale and change your proportions. There are some people who are more willing to save money and get rid of spending habits because they are smarter. Only a minority can do this. Most people fall into the trap of waste, as I said. People who spend a lot of money usually spend more when they have a lot of money.

So I think the problem of not saving money can not be solved by borrowing money in advance. The root of the problem must be identified and addressed.

  1. Have a budget
  2. Make a list of expenses and close the loopholes
  3. Distinguish between use and waste.
  4. Learn how to save money in another country.
  5. American Savings
  6. How to do Japanese accounting?
  7. When you get money, save it in the bank first.

Open a dedicated bank account to save money. This bank account must be separate from the one you use on a daily basis. Set up a personal account to save money.

Set a budget for each month, and as soon as you get the money you want, save it to the bank immediately. If you are worried about withdrawing money from the bank, keep your passbook and bank card locked and leave the key to someone you trust.

The only exception is if you borrow money to invest in a place that is more profitable than the interest rate. You do not want to be frustrated if you cannot get the right pitch so invest in a good capo. But first you need to calculate. It's safer to invest money and not borrow money.

Before borrowing money, consider whether you can repay both the interest and the principal. Do not lend if the answer is no. Be able to repay with current income. If by accident there is no way to earn that income, If you lose your job You also want them available to answer your questions when you are feeling uncertain about your suit.