Should You Borrow Money to Purchase Secondary Needs?

We are aware of our primary needs, which are food, water, clothing, and shelter. Secondary needs are those that do not fall under the categories of primary needs. These include entertainment, gadgets, and modern conveniences like microwave ovens, washing machines, and air conditioning.

Secondary needs are not always necessary to live a decent life, though they are good to have. For instance, you want to have an air conditioner at home, but you cannot afford it. You may then consider taking out a loan from legitimate money lenders to purchase an AC. 

But is it a good idea to get your secondary needs through loans? There are pros and cons. Consider them first before making that decision.

Yes, if your income is stable and you have the means to pay back the loan.

Taking out a loan is not a bad thing if you are capable of paying it back. That means you have a job or business that gives you a consistent income every month. Also, your monthly expenses must be well below your monthly salary. This way, you can spare some of your income for loan repayments.

Let’s say you don’t have enough money yet to buy an air conditioner, but you think you need one for a more comfortable home. Take a look at your income and expenses per month. If your budget permits, it’s reasonable to take out a loan to purchase an AC.

Just make sure to always repay your loan on time each month. Pay the full amount every time to avoid costly penalties and interest charges. The faster you can pay off your loan, the less money you will waste on interest. 

Most importantly, paying back your loan on time boosts your credit score. If your credit score is high, you are much more likely to get approved for loans, credit cards, and the like. 

No, if you are not confident in your ability to repay the loan.

If your income is barely meeting your monthly expenses, taking out a loan is an additional burden you do not want to bear. If you’re aware that you may not have any money to pay back the loan, do not take out a loan. Especially if it’s only for a secondary need.

When you’re in a tight financial situation, focus on your primary needs first. Make sure these are met before deciding to spend anything on secondary needs. Remember that it is possible to live a decent life even without those secondary needs.

Once your situation improves, and your expenses become smaller than your monthly income, you can begin to purchase your secondary needs. But again, before taking out a loan, make sure you can make the monthly repayments consistently until the loan is fully paid off.


Only borrow money for your secondary needs if you have the means to pay back the loan. Otherwise, you are better off living without those secondary needs for the moment. 
If you decide to take out a loan, make sure it’s from a licensed money lender in Orchard. Licensed money lenders give you a better sense of safety and trust.

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