Young professionals have many goals and aspirations, especially when it comes to their careers and achieving a better quality of life. Unfortunately, the economic impact of various global crises has negatively affected real income. This problem has become a roadblock to their dreams.
Thankfully, reliable money lenders can serve as a valuable financial tool to get over those blocks. Here are some of the wise things young professionals can take out loans for:
One of the most common and compelling reasons for young professionals to consider taking out a loan is to finance higher education. They seek advanced degrees, certifications, or specialised courses because they open up new and higher career opportunities and lead to higher-paying jobs.
As for young professionals that wish to open a business, a higher education would help them acquire the knowledge and expertise necessary to launch and manage a successful enterprise. It would also give them a broader network, which can help their business grow faster.
But school fees are not that cheap, specifically for further education such as a master’s degree. Singapore’s average yearly education inflation rate was 2.86% for the last 20 years (2002–2022).
When young professionals do not have enough savings, they can get student loans that are often offered at favourable terms and provide the necessary financial backing for educational aspirations.
Assume you’re in your mid-20s and have only three years of marketing experience in Singapore. You wish to consider expanding your career by acquiring a Master’s in Business Administration (MBA) because you believe it will allow you to advance to more senior-level positions and considerably increase your earning potential in the long run.
However, you have not saved enough to cover your education fees. Following rigorous research and financial planning, you decide to look into loan opportunities, contact a reliable money lender in Singapore, and apply for a customised school loan.
The lender gives you the loan amount you need, as well as information on interest rates, payback terms, and any additional expenses. You can now enrol in your selected MBA programme with loan approval. The funds cover tuition, textbooks, and living expenses for the duration of the programme.
After completing your MBA, you will have gained new skills and knowledge that will allow you to advance to more senior positions in the marketing department and secure a promotion with a large salary boost. The new amount of your wage may be sufficient to repay your loans.
Obtaining a loan for higher education is the best long-term investment for young professionals. It’s a deliberate financial decision that aligns with their long-term financial goals and career aspirations.
Nobody wants their family member to fall ill, get grievously injured, their house damaged, their car’s engine to break down, or lose their job. Unfortunately, unforeseen emergencies like this can happen anytime and shockingly disrupt financial stability.
Thankfully, young professionals can avail of personal loans to cover these sudden expenses without depleting their savings or incurring high credit card interest. With a money lender, you can discuss your emergency needs and the repayment terms for it.
Accumulating various forms of debt, such as credit card balances, personal loans, or medical bills, can be financially burdensome. But with debt consolidation, the repayment process can be unified into one debt with manageable terms.
Debt consolidation loans often come with lower interest rates compared to credit cards or other high-interest debts. This can reduce the overall cost of servicing the debt and save money in the long run.
Let’s say you are a project manager working in Singapore who has been carefully saving and investing your money. You’ve racked up a whole bunch of debts over the years, including credit card balances, a personal loan, and a minor medical cost.
You’ve already started making minimum payments on these debts, but the heavy interest rates have slowed your progress. You’re also finding it increasingly difficult to manage many creditors and due dates.
One day you realize that this is costing you more money than it should, so you decide to look into debt consolidation loans and contact a reliable Singapore money lender to discuss your situation and available options. You are accepted for a debt consolidation loan that covers the full amount of your existing debts after an in-depth examination, and now have a single, lower-interest loan with a set repayment schedule.
As Singapore’s real estate market presents attractive investment opportunities, young professionals seek loans to purchase properties, such as residential or commercial real estate, as an investment to generate rental income or capitalise on property appreciation.
On the other hand, some young professionals have decided to invest in businesses, especially startups. Nowadays, tech startups in Singapore are rising as promising investments. For example, Deep Tech received more than $1 billion in investment in 2022, and VC firm iGlobe Partners is raising a $200 million fund to back Deep Tech startups.
Young professionals with a keen interest in financial markets or real estate may take advantage of this brilliant opportunity. But young professionals who commonly have less than three years of working experience lack the necessary capital to seize these opportunities. And, for the sake of keeping financial safety nets intact, diving into emergency cash or long-term savings for investment is not a good idea.
Taking out loans to invest strategically while managing them carefully allows young professionals to diversify their portfolio and capitalise on good investment possibilities, perhaps leading to significant financial gain in the future.
According to Today Singapore, 78 percent of 1,000 respondents aged 18 to 35 said owning a private home is one of their life goals. However, due to financial constraints, more than 80% of Singaporeans live in public housing.
Because of this, one of the most common way for young professionals to own a house in Singapore is now through established and licenced money lenders. A reliable and trusted money lender can help these people get started on the path to homeownership by providing stability and potential investment opportunities, including consultation regarding monthly mortgage instalment.
Healthcare and medical expenses
Healthcare is definitely a critical requirement, but medical costs can sometimes outstrip our resources or exceed our insurance coverage. Thankfully, you can get a loan to pay for your medical needs. Personal loans for medical bills are available from quick money lenders in Singapore. These loans can provide peace of mind by ensuring that you or your loved ones receive the necessary medical care without delay, even if the fees are unexpected.
Here’s an example: Jack is a young accountant in Singapore who is covered by his employer’s health insurance. One day, Jack experienced a medical emergency, which was identified as a unique medical condition that requires immediate surgery and continued therapy. Because of this, Jack incurred unexpected charges, which gradually grew and exceeded the coverage limit.
Jack opted to take out a private medical loan from a reputable money lender in Singapore to ensure he received the best immediate care and cover his medical expenditures. His health improved over time. Soon enough, he returned to work and eventually paid off his medical loans gradually with a structured repayment plan. All of this without financially burdening himself or his family.
Why do we wait so long to get a loan for our dreams?
Reliable money lenders in Singapore play a crucial role in providing accessible and flexible financial solutions to help these individuals turn their aspirations into reality, or help them in times of financial or even medical need.
However, young professionals have to remember that with loans, as with any other financial decisions, careful planning, responsible borrowing, and informed choices are key to making the most of its. By working with trusted lenders and crafting well-thought-out financial strategies, young professionals can secure a brighter financial future.