By Fr. Christopher Sichinga

In an effort to sustain their plans and efforts, many young people today opt to borrow money from friends and family members. This habit however is bringing in a kind of financial stress and ultimately some criminality when they fail to pay back. Hear this! The current financial crisis calls for a proper financial plan. Borrow money wisely.

Have a financial plan

To achieve your goals, create a roadmap of your money. Professional economists will always insist that a good financial plan should include details about your cash flow, savings, debt, investments, insurance and any other element of your financial life. Always adjust your plan after major life milestones, like getting married, starting a new job, having a child or losing a loved one. Get rid of all financial stress by having a workable and realistic plan. Be conscious not to borrow money needlessly.

Borrow for a just reason

Kelvin Kalipinde, Finance and Value Management Analysts at Standard Bank Group Malawi advices young people to be more careful when borrowing money from friends and family. According to Kelvin, it is justifiable to borrow money if it is meant to cover emergencies which can have detriment effects if left hanging. Go for a loan if you want to pay the once off huge expenditures such as procurement of a house, car or land. The golden rule is, borrow for an investment and not for consumption.

Borrow what you can manage to pay back

To pay the loans without struggling, you need to plan well but first, know your limit. Begin with the huge ones to small ones. Those with interest should be given the priority. Old loans should also be given the attention no matter how small they are. Work out your plans according to your capacity. Avoid taking a loan to pay for a loan. Negotiate with the funds owners on when specifically they need their money back. Work hard to generate more income to pay for your loans easily.

Never borrow without a plan

Faith Nthenda, one of the Accountants at The Catholic Secretariat strongly commends to borrow money with a plan; “Say no to the habit of accumulating loans. Stop giving yourself stress and anxiety due to unpaid loans. Laziness should not drive you to borrow money for fun. Develop patience in your life and always work hard to earn a living. Never ever borrow money for pleasure. Use your hard earned money wisely”. Say no to the culture of borrowing money with no plan.