These 4 types of money should not be borrowed, especially when dealing with cryptocurrencies

Avoid borrowing for consumption

One should spend within their means and never borrow money to make purchases. If you need to borrow money to buy something, it reflects that you currently do not have the financial capacity to afford it. Once you develop the habit of overspending, you will inevitably pay for it in other ways in the future.

For example, one of my employees mentioned that her friend borrowed money from her to buy the latest iPhone 16. She refused, and as a result, that friend spread rumors that she was a "stingy person".

Do not borrow for financial investments

No matter how frenzied the cryptocurrency market is or how volatile the stock market becomes, one should never borrow money to invest financially. In most cases, borrowing should only be used for productive investments.

Productive borrowing can yield long-term returns, such as education, learning, startup capital, etc. These investments are like planting trees; they require time and money upfront but will eventually yield abundant fruits.

Clarify repayment expectations before borrowing

Before borrowing, one must clarify repayment expectations. Here, “clarify repayment expectations” refers to ensuring that even if the borrowing is for investment, it should be equivalent to an advance withdrawal of certain future income, rather than a blind risk.

My friends and family all understand this principle of mine, so when they borrow money from me, they always clarify the repayment time in advance. For example, two years ago, my sister-in-law borrowed three hundred thousand from us, agreeing to repay it this year, and she indeed repaid on time. Because we understood that she had a stable job and source of income, we felt safe lending her money.

Avoid borrowing with excessive additional terms

During the borrowing process, if you have to bear more terms or conditions than others, then this loan may not be suitable for you.

For example, when we changed cars during the last bull market, the dealership added a bunch of conditions because they suspected our repayment ability, just because we wanted the vehicle registered under the elderly person's name.

Currently, the market is adjusting, and I am optimistic about Ethereum Chain Musk 𝒑𝒖𝒑𝒑𝒊𝒆𝒔!