• Contact Us
  • About Us
  • Advertisement
  • Privacy & Policy
Friday, July 11, 2025
SUBSCRIBE
The Brief | Namibia's Leading Business & Financial News
13 °c
Columbus
19 ° Tue
21 ° Wed
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
  • e-edition
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
  • Home
  • Companies
    • Finance
    • Agriculture
    • Technology
    • Property
    • Trade
    • Tourism
  • Business & Economy
  • Mining & Energy
  • Opinions
    • Analysis
    • Columnists
  • Africa
  • e-edition
No Result
View All Result
The Brief | Namibia's Leading Business & Financial News
Subscribe
No Result
View All Result
TB image banner 750x140
Home Companies Finance

DEBT | A Financial Advisor’s perspective on strategic borrowing

by editor
February 5, 2024
in Finance
6
A A
2
SHARES
2.1k
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

In the complex landscape of personal finance, the topic of debt often elicits mixed emotions and raises questions about its role in our lives.

You might also like

NamRA collects N$12.78 billion in first two months of financial year

BoN orders banks to cut gap between repo and lending rates

DBN secures Green Climate Fund accreditation

The renowned rapper Jay Z once stated, “If you can’t buy it twice, you can’t afford it,” offering a perspective that aligns with the prudent financial management approach. However, the prism through which we view debt can significantly impact our financial well-being, and understanding the distinction between good and bad debt is crucial.

Consider debt as a claim on your future earnings, allowing you to spend tomorrow’s money today. This perspective underscores the importance of strategic borrowing, where the borrowed funds contribute to future income growth rather than hinder it. As a financial advisor, I advocate for a simple yet effective matrix when evaluating the nature of debt.

Good Debt: Investing in Future Income Growth

Good debt, in my view, is debt that enhances future income potential. One prime example is education. Borrowing to invest in education increases the likelihood of securing higher-paying opportunities in the future. Viewing education as an investment in oneself aligns with the principle of leveraging tomorrow’s income to fund personal development today.

Another form of good debt is a mortgage. While it may not directly produce income, a mortgage is an investment in a tangible asset—real estate. Properties, on average, appreciate over time, acting as a form of forced savings. This approach ensures that while money is spent on housing, it is not lost but rather stored in an asset that can be liquidated in the future.

Bad Debt: Hindering Future Income

Conversely, bad debt is debt that diminishes future income potential. An extravagant wedding, for instance, is often considered a bad debt as it involves substantial spending with no corresponding increase in assets or income. Such expenditures can leave individuals financially strained in the aftermath, negatively impacting future financial prospects.

The purchase of a luxury car is another example of potentially bad debt. While transportation is a necessity, overspending on a vehicle for the sake of lifestyle can result in financial strain. Focusing on the functionality of transport rather than succumbing to the allure of luxury is a key consideration when managing this type of debt.

Strategic Investments: Shaping Your Financial Future

As a financial advisor, I encourage clients to approach debt as a tool for shaping their financial future. Investing for retirement, for instance, is an expense with long-term benefits. Transitioning from a borrower to a lender through strategic investments in income-producing assets is a path to financial security.

Investing in businesses can be rewarding but comes with risks. Opting for less capital-intensive ventures or service-based businesses can mitigate some of these risks, providing opportunities for growth without excessive financial burden.

In conclusion, while contributing to the growing debt may be inevitable, the key lies in leveraging debt strategically. Adopting a perspective that distinguishes between good and bad debt can empower individuals to make informed financial decisions, securing a prosperous future while avoiding unnecessary financial pitfalls. As we navigate the intricacies of debt, let us strive to be not just borrowers, but savvy investors in our own future.

I would love to hear your take on this please like, share or better yet leave a comment.

*Unore Karutjaiva, is an accomplished Financial Professional with a robust background in personal finance, sales, marketing, and business development. Possessing a Bachelor of Business Management, Unore exhibits expertise across various domains, including CRM, investment analysis & performance management as well as reporting, and regulatory compliance. With a professional tenure exceeding half a decade in a financial space, of which three were dedicated specifically to the intricate landscapes of insurance and investment. Unore’s success is grounded in a practical results-driven approach, excellent client relationships, and a commitment to superior service delivery.

author avatar
editor
See Full Bio
Tags: debteconomyfinancefinancial adviseFinancial AdvisorFuture Income GrowthnamibiaStrategic InvestmentsUnore Karutjaiva
Share50Tweet32Share9
Previous Post

DBN pioneering progress in national advancement

Next Post

Over N$100 million siphoned from Namibia through ghost companies

Recommended For You

NamRA collects N$12.78 billion in first two months of financial year

by reporter
July 9, 2025
0
NamRA sees drop in illegal vehicle imports following moratorium

The Namibia Revenue Agency (NamRA) has collected N$12.78 billion in revenue between 1 April and 31 May 2025, as part of the current financial year. Of this total,...

Read moreDetails

BoN orders banks to cut gap between repo and lending rates

by reporter
July 2, 2025
0
BoN orders banks to cut gap between repo and lending rates

The Bank of Namibia (BoN) has directed all commercial banks to narrow the gap between the repo rate and lending rates by 25 basis points in two stages...

Read moreDetails

DBN secures Green Climate Fund accreditation

by reporter
July 2, 2025
0
DBN secures Green Climate Fund accreditation

The Development Bank of Namibia (DBN) has been officially accredited by the Green Climate Fund (GCF), a move expected to improve Namibia’s ability to access international climate finance....

Read moreDetails

Bank of Namibia meets incoming Bank Windhoek MD

by reporter
July 2, 2025
0
Bank of Namibia meets incoming Bank Windhoek MD

The Bank of Namibia has officially met with James Chapman, who will take over as Managing Director of Bank Windhoek in July 2025. Chapman was introduced to BoN...

Read moreDetails

Standard Bank invests N$35 million in CSI initiatives over five years

by reporter
June 30, 2025
0
Standard Bank invests N$35 million in CSI initiatives over five years

Standard Bank Namibia says it has invested more than N$35 million in Corporate Social Investment (CSI) initiatives over the past five years. The bank’s wide-ranging support spans health,...

Read moreDetails
Next Post
Over N$100 million siphoned from Namibia through ghost companies

Over N$100 million siphoned from Namibia through ghost companies

Related News

Bank Windhoek finances N$57.6m worth of sustainable projects

Bank Windhoek finances N$57.6m worth of sustainable projects

October 6, 2023
Namibia new vehicle sales continue on the upsurge

Namibia new vehicle sales continue on the upsurge

May 13, 2022
Contextual intelligence as the leadership’s winter coat

Contextual intelligence as the leadership’s winter coat

June 3, 2025

Browse by Category

  • Africa
  • Agriculture
  • Analysis
  • Business & Economy
  • Columnists
  • Companies
  • Finance
  • Finance
  • Fisheries
  • Green Hydrogen
  • Health
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • Namibia
  • namibia
  • News
  • Opinions
  • Property
  • Retail
  • Technology
  • Tourism
  • Trade
The Brief | Namibia's Leading Business & Financial News

The Brief is Namibia's leading daily business, finance and economic news publication.

CATEGORIES

  • Business & Economy
  • Companies
    • Agriculture
    • Finance
    • Fisheries
    • Health
    • Property
    • Retail
    • Technology
    • Tourism
    • Trade
  • Finance
  • Green Hydrogen
  • Investing
  • Latest
  • Market
  • Mining & Energy
  • namibia
  • News
    • Africa
    • Namibia
  • Opinions
    • Analysis
    • Columnists

CONTACT US

Cell: +264814612969

Email: newsdesk@thebrief.com.na

© 2025 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Companies
  • Mining & Energy
  • Business & Economy
  • Opinions
    • Analysis
    • Columnists
  • Africa

© 2025 The Brief | All Rights Reserved. Namibian Business News, Current Affairs, Analysis and Commentary

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.