Finance-savvy individuals aim to be financially free. It's a must to maintain an emergency fund in the bank (or wherever the funds will stay liquid) so that we have enough money for - you guessed it - emergencies. But what if we haven't prepared enough? Experts say it is wise to keep at least 6 months worth of your income. But what if the emergency entails more than that?
There are also some things we need to acquire which we might not immediately afford. Take note that I said "need" and not "want." A house falls under a need; a new gadget does not.
This is where a bank loan comes in (provided you pay it as soon as you can, of course!). Let's read this guest post on the six uses of a bank loan.
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For an Education
Attending university certainly comes with a large cost, but bank loans can help to pay for schooling. Once the student has finished his or her studies, the loan will start to be paid back in small increments over time. Some parents might look into these loans if they want to send their children to private or boarding school.For a New Car
Chugging along in a broken-down car every day to work or school is not only annoying, but it is also really dangerous. When this situation is the one you experience on a daily basis, it is time to look for a new vehicle. Taking out a bank loan gives you the opportunity to obtain the amount of money necessary or something safe.For a House
In order to buy a house, most people need to take out a loan. Once you have secured the loan, you are able to purchase a place for your family to live in. You might wind up selling it in a few years and making a decent amount of money off of the property.Rental Properties
Are you looking for some extra income? Do you want to have a place to live in when retirement comes around for you and your spouse? Get started on making that plan today, and you could take out a loan to buy a rental property. Throughout the year, you will be able to make a profit from it.Home Renovations/Repairs
Instead of waiting years and years to save up enough money to add an extra bedroom onto your house, take out a loan to complete the work. In addition to finally having enough space for your family, you will also be significantly increasing the potential resale value of your home.To Start a Charity
In certain cases, you might be able to take out a nonprofit loan from the bank, or you may be able to get a loan to finally get your charity organization started. Many people dream of opening up such a place, but they simply do not have the money to do so. Taking out a bank loan gives you the opportunity to achieve this personal goal and to create better lives for others too.As you can now see, bank loans do not have only one purpose. Instead, these types of loans have so many different opportunities to provide to you, so get started on obtaining yours as soon as possible by clicking here. (link removed)
Michael Wood is a keen blogger and and personal finance enthusiast. His work can also be seen on Financial News Group as well as Frugal Plex.
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