Never Borrow Money Until You Understand This

What really happens when you borrow money? You get the money today—but part of your future income is now committed to paying it back. In this Bobby Invest episode, we break down what borrowing money actually means, why focusing only on the monthly payment can be dangerous, how credit cards can change the way you think about spending, and why borrowing to invest can magnify your losses. More importantly, you'll learn the questions you should ask yourself **before taking on any new debt**. In this video, you'll learn: • Why borrowing means committing part of your future income • Why the monthly payment isn't the true cost of a loan • How to calculate the real cost of borrowing • Why your credit limit is NOT your income • How impatience and lifestyle inflation can lead to unnecessary debt • Why not all debt is automatically bad • Why borrowing money to invest can be especially risky • The *Bobby Borrowing Test* — 6 questions to ask before taking on debt • How to make financial decisions that protect your future freedom The goal isn't to tell you that all debt is bad. It's to help you understand the consequences of borrowing so you can make better financial decisions. Before you ask, **“Can I afford the payment?”**, learn to ask: *“What is this debt going to do to my future?”* If you found this video useful, **like the video, subscribe to Bobby Invest**, and check out the other videos on the channel for more practical lessons about money, investing, and building long-term wealth. Remember, wealth isn't built overnight—it’s built one smart decision at a time. Until next time, keep learning, stay patient, and invest wisely. #BobbyInvest #PersonalFinance #Debt #Money #Investing #FinancialLiteracy #WealthBuilding