Saving Money Can I save money I borrowed?

[Bookwormlux]

I want to know if there are any regulations that stop an individual from being able to save amount of money that was obtained through some lending companies or organizations. It could also be money that was gotten from someone who lend it to us .

I understand that this may seem somehow to some of us ,but it is very important for us to discuss things like this because not everybody usually collect loan for spending immediately , but they may be accumulating amount of money so that it would enable them to have high capital before you can venture into a particular project or business that they may be having in mind .

The problem with a situation like this is that , as you are accumulating the money in your savings account, the interest rates for your loans are also increasing by the day, and this would then put you in a disadvantage position , especially if you do not get to execute the projects you have in mind or did not generate enough revenue like you earlier thought .

Can you take this risk of going about to take loan and then receiving it depending when you can start a business or execute a project?

 

[Jasz]

I dont totally agree with saving a borrowed money. However, it is important to remember that the money you borrow is not yours to spend. Therefore, it is important to pay your debts as quickly as possible. If you do not pay your debts on time, they will incur interest and this will make your loan more expensive.

If you are unable to repay your debt, then it may be possible for you to refinance the loan at a lower rate of interest. This will reduce the amount of money that needs to be repaid each month and may even reduce the total amount that has been borrowed over the term of the loan.

 

[Rachael]

Well, it is possible to save the money you borrowed but to be logical, it does not make any sense to me. The aim of borrowing money has never been to save it, so I am kind of perplexed where this ideology is coming from. If you get a loan just to save it, without investing either in fixed deposit or treasury bill account which can skyrocket the money, it means you do not even have a direction.

The best thing to do with a borrowed money when you are short of ideas is to refund the money immediately. I have seen a case where my friend applied for a loan, but after all the hassle to get the loan approved, she was so pessimistic and engulfed with fear to the point that, she did not make use of the money rather she left it in her bank account and the money did not materialize. The point is, there is no need borrowing a loan just for the purpose of saving it because it would be unprofitable. Every loan comes with an interest rate attached, and as you are saving the money with no gain on your side, the interest rate that you must pay at the point of refund keeps accumulating.

 

[TOZZIBLINKZ]

There is nothing absolutely wrong to save the money that you borrowed . some people go ahead to borrow money either from family members or from the bank to invest in your business or to carry out any personal or business-related activities and practices but sometimes they could have a second thought to what your intentions of what they want to use the borrowed money for then I come to see that they are thought will not work out even if they invest the borrowed money , and so in this situation it is advised to save the money rather than going ahead to invest it so as not to lose it .

Money is a very valuable tool and must be used wisely and sensibly not insensibly , that is why we all are always advise the first of all cross-check and second-think our intentions and actions on what we want to use money for finding out whether it will work out or finding out whether such intentions or actions is absolutely worth the money we are trying to invest . In other words , this is known as alertness and consciousness . Yes , being alert and conscious of where you invest your money is very important so as not to lose it .

 

[Shigobad2020]

Saving the money you borrowed is absolutely nonsense and a waste of time because your money will keep reducing most especially if you save the money in a savings deposit account because of the charges every time but it might actually increase of the money is been saved in a fixed deposit account but the amount of the increament might be low but its actually better than saving in a savings account.

The only way I think you can make use of a borrowed money instead of just wasting your time saving the money is by investing the money wisely in an online business , crypto currency investment or trading is a good way of increasing your money instead of leaving it stagnant.
You can also go into offline business, like farming or trading business which will bring huge amount of income in a short period of time .
So i am not a fan of saving a borrowed money instead i will rather invest it.