Portrait of a borrower

Meet Tuan and Mai again

Mai can’t wait another 6 months to save enough money to buy the laptop, she wants to buy one now. However, her mom won’t even discuss it.

Tuan cannot delay buying a new motorbike any longer. An old motorbike won’t help build his image. He has only saved 1/3 of the cost to buy a motorbike, so how will he find the remaining 2/3 of the money?

For a young graduate like Mai, a computer can help her work more and provide access to opportunities to learn and improve herself. In addition, setting and reaching a financial goal helps Mai understand that small saving habits are the basis for achieving big things. A laptop will also help Mai to earn money and gain experience from a part-time job, such as managing a community fan page or writing articles for a website. Similarly, Tuan’s job requires a neat appearance to meet customers, so a new motorbike or car would an asset.

Basis for loan decision making

Essentials of a responsible borrower

Do you have what it takes to be a responsible borrower? Find out by answering the questions below.

The more “yes” answers you have on the odd- numbered questions and “no” answers on the even-numbered questions, the more likely you are to be a smart borrower! If you didn’t do well, don’t worry. Practice the instructions in Chapter 1 and Chapter 2 to make sure you have built good financial habits.

Remember that every time you take out a loan or make credit card purchases for more than you will repay in full that month, you’re borrowing from two people: the lender and your future self. Smart borrowers know that every dollar borrowed today is a dollar less to spend from the next paycheck.

KNOW THE LIMIT

From the income calculation in Chapter 1, Tuan and Mai determine their maximum loan as follows:

If you have any income now, you should also compute your debt limits this way.

¹⁴ Includes credit cards but not mortgages