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Borrow or Use own money?

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  • 09-09-2008 7:28pm
    #1
    MLE
    Registered Users Posts: 180 ✭✭


    I know it seems obvious that you should use your own money but for this Im not sure.

    Basically I need a big bit of plumbing done on the house and even though I could scrape (and I mean scrape) together the money from different sources (around 10K), I would then be broke with a capital B. I would have nothing to fall back on for any unexpected costs which I suppose this is.

    So just wondering if people have any advice or opinions on what other people would do in this situation.

    Im leaning towards just using my own money but the thoughts of having no rainy day fund scares me.


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    #2
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    MLE wrote: »
    I know it seems obvious that you should use your own money but for this Im not sure.

    Basically I need a big bit of plumbing done on the house and even though I could scrape (and I mean scrape) together the money from different sources (around 10K), I would then be broke with a capital B. I would have nothing to fall back on for any unexpected costs which I suppose this is.

    So just wondering if people have any advice or opinions on what other people would do in this situation.

    Im leaning towards just using my own money but the thoughts of having no rainy day fund scares me.

    It really depends TBH....

    Is the property an investment one? If so then borrowing the money might be more beneficial as you could offset the interest paid against rental income.

    If the property is your residence then it really depends on who you are scraping the money from. Are you using credit cards to fund the expenditure? If so then I would use your own savings and perhaps a smaller loan. Borrowing on credit cards is quite expensive.

    First thing I would do would be to setup a regular savings a/c and put the plumbling on hold for a few months. Save a bit every month an try and make up as much as you can towards the amount needed and perhaps borrow the rest as needed.


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    #3
    MLE
    Registered Users Posts: 180 ✭✭MLE


    Thanks for the advice. Its my home and putting plumbing (i.e. heating) on the back burner as it were until you can afford it when winter is coming isnt really an option.

    I do have a savings account but unfortunately for me I used by easy to get to savings on a new bathroom just before I found out about the plumbing.

    The savings I would be scraping together would be from credit union (savings) etc as I would never use the credit card.

    I think Ill wait for the quote and I might pay half borrow half..


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