On PFS Money Matters Monday this week, w

On PFS Money Matters Monday this week, we continue with our tips that encourage you to save, spend wisely and generate additional income where possible.
Today we zoom in on spending wisely and go even further to borrowing wisely.
Firstly, borrowing becomes like spending, as it is included in your monthly expenditure. As long as it boils down to you parting with your cash, it is spending.

People borrow for a different reason each time they have an urgent need that their budget cannot fill, or they may have substituted a need to fill this emergency.
You can now say, that if you borrow to facilitate an emergency, it is prime example of responsible borrowing.
Remember, Debt is never bad, as long as it is done responsibly or to facilitate a goal.
PFS’ first borrowing tip is:

Borrowing what you can afford to repay – if you have never budgeted in the past, upon thinking of borrowing, it would be a good time to start. You have to budget for your loan repayments and your budget should reflect this.
In essence, you have to see for yourself that what you are intending to put aside to pay the loan is actually reflected in your disposable income.
In the same breath, if you find that you can afford a certain payment plan, do not be tempted to borrow more than you actually intended to. It is a loan, not a grant. You will have to repay it.
You are encouraged, not to substitute your monthly needs (food, school, travelling etc.) to make space on your budget for a loan.
Your loan payment should not be a burden on your cash flow, but a partner with evidence that borrowing the money had indeed helped you.

From PFS: Your partner in Finance. http://ow.ly/i/bUIkE

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