Should I borrow or wait? A simple guide for big decisions

Life moves quickly, and financial decisions often follow just as fast. Whether it’s a car upgrade, a last-minute holiday, or furnishing your new apartment, choosing if you should wait for the right moment or take the leap can be tricky. Here are a few things to consider while making the decision.

Let’s start by understanding the difference between short-term appeal and long-term value. Essentials like education, housing, or medical expenses may justify borrowing as these are investments in your well-being or future potential. On the other hand, borrowing for impulse buys such as luxury items may bring quick satisfaction but not significant long-term worth.

Another consideration is your repayment capacity. Ideally, your total monthly debt repayments should not exceed 20% of your income. If a new loan leaves you scrambling by the end of the month, it might be a sign to wait and save instead.

Life can be unpredictable sometimes- a sudden job loss or an unexpected emergency can make repayments tough. That’s why having a financial cushion matters. If borrowing will leave you with little to no savings, it may be a risky move.

Finally, think about what this loan will do for you. Will it open new doors, like a professional course or a home? Or will it lose value quickly? If it won’t add long-term value to your life, waiting might be wiser.

Quick tip: Before you borrow, consider other routes—like saving in advance or using zero-interest installment plans. And always compare offers.

Borrowing isn’t bad—it just requires being thoughtful. A quick pause now can save you long-term stress.

Disclaimer

The views shared in this podcast are for general information and educational purposes only and do not constitute financial, investment, legal or tax advice. Listeners should seek independent advice from a qualified professional before making any financial decisions. Emirates NBD Bank PJSC accepts no liability for any loss arising from reliance on the content discussed.

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