Financial Risks In Getting Loans

If you really want to make it in your life, you need to have some critical money sense. I move around a lot. I meet business people and I have collected several money sense tips from them. Below are some of them for you:

1) It is dangerous to take a loan if you don’t have your main capital which should exceed the loan. One must take a loan only if you have a back up of that much principal. This helps in paying back in case the re payment plans fail.

2) A loan is worth taking only to increase your capital base or to make much more money than the original loan. One can go for a loan only if the purpose for which loan is taken going to multiply your base capital.

3) Discover the fact that money, lots of it, can be made in all occupations including farming. Be it any job or business, large base capital can be made very easily if one knows the art of multiplying it.

4) Remember the magic lesson for earning money. Put service and quality first and money takes care of itself. Anything and everything we are delivering must be of top quality. Money follows quality work.

5) Don’t spend more than you earn, and (if possible) set some cash aside for a special day.

6) A bad loan is never worth taking. That is when the money you are making from the loan is less than your expenses or when you are using the loaned money to buy liabilities or making frivolous trips instead of buying assets.

7) It is also a bad loan when you take a loan for consumption purposes. That is a sure way to bankruptcy, failure and shame.

8) Never begin a risky deal in your farming operations without doing thorough research and a complete study of all necessary information.

9) The greatest decision you can make in any business including farming is to reinvest your profits on a constant basis.

Keep this article and go over it again and again until you begin to smile to the bank