Do You Ever Borrow Money From Yourself?
By Jim Bauer
@porwest (78759)
United States
November 20, 2022 5:04pm CST
I guess it is one of the joys of having money and at the same time being quite a bit money hungry.
But, it is also a part of having a very well defined and systematic approach to everything money related. From budgeting to how paychecks are handled—it's a process, as I like to say.
There is, of course, a part of the "budget" allocated to spending. But sometimes it does not quite cover everything wanted nor everything needed. So, sometimes you have to pull some money out of something else.
Out of savings, or out of investments.
Some people simply pull the money and forget about it and then slowly work to put it back, if they even make a real effort to put it back.
Because the spending portion of the budget is a real line item, I can take from savings or investments and essentially borrow from future earnings.
Essentially what it is, is a payment from the current spending budget back to savings and investment. Not only do I pay the money back from future earnings to saving and investments, I pay myself a rate of interest as well so that the amount returned is greater than the amount taken.
In other words, it's a bill just like any other bill and it is treated as such.
Do you ever borrow from yourself or if you need the money from saving or investment do you just take the money and just go about your future savings as usual?
9 people like this
10 responses
@LindaOHio (158044)
• United States
21 Nov 22
Whenever we pay cash for something, we try and "pay back" that money ASAP.
2 people like this
@LindaOHio (158044)
• United States
23 Nov 22
@porwest I plan on taking it with me! :-)
1 person likes this
@porwest (78759)
• United States
24 Nov 22
@LindaOHio Wouldn't that be funny if on your first day of entering the Pearly Gates you have to talk to some finance guy with a harp to work out the details of accounts and investments and all that? lol
1 person likes this
@kaylachan (58706)
• Daytona Beach, Florida
20 Nov 22
I do tend to barrow from myself, but it's far and few-in between. And, I do know I can do better but continue to save as usual. I know I should do better, but at least I'm in a better place now than I was this time last year and so on.
2 people like this
@kaylachan (58706)
• Daytona Beach, Florida
21 Nov 22
@porwest Agreed. Which is what we've managed to accomplish.
1 person likes this
@yoalldudes (35040)
• Philippines
21 Nov 22
I believe this is zero interest 
. Paying back what we owe from our savings is a good practice.
. Paying back what we owe from our savings is a good practice.2 people like this
@porwest (78759)
• United States
22 Nov 22
Part of the reason it happens to me sometimes is that I give ourselves a small amount for spending. There are "extra allocations," but I am pretty strict about those too. I don't keep things so tight, though, that I am not able to enjoy myself. As the old saying goes, you can't take it with you. But so long as I am here I do not want to be broke nor struggling.
1 person likes this
@moffittjc (118702)
• Gainesville, Florida
23 Nov 22
I borrow from myself on occasion, but only if I can assure myself I can pay myself back within a reasonable timeline (and with interest, just as you do). If I think the timeframe of paying myself back will take longer than I am comfortable with, then I will forego the loan to myself.
1 person likes this
@moffittjc (118702)
• Gainesville, Florida
29 Nov 22
@porwest If you think about, we always seem to find the money for the things we really, really want, don't we? lol
1 person likes this
@porwest (78759)
• United States
1 Dec 22
@moffittjc It sometimes just materializes. Funny that, hey? lol
1 person likes this
@lovebuglena (43130)
• Staten Island, New York
21 Nov 22
At one point hubby transferred a portion of his balance from his amex to another credit credit because it offered 0% interest. Now that the 0% is no more I told him to just borrow from himself to pay off that balance and then pay himself back every month just like he would if he got a loan. Will see if he will actually pay himself back and on a monthly basis.
This thought crossed my mind. While we can't be careless with our money and should still be frugal, no matter how much of it we saved up over the years, shouldn't that money be spent and enjoyed? What good will it do us sitting in the bank untouched once we die? And what happens to that money once we die if we did not set a beneficiary for it?
1 person likes this
@lovebuglena (43130)
• Staten Island, New York
29 Dec 22
@porwest Right now Capital One offers 4.15% for a 1-year CD. I wanted to open one. Hubby wants to wait. Says rates will go up more. Will they?
1 person likes this
@porwest (78759)
• United States
28 Dec 22
The thing that I think a lot of people tend to miss about money, and miss from my many discussions and comments about it, is that money IS intended to be spent and enjoyed. It's part of the point. But in order to do that, you have to have money.
More importantly, you have to also have the TIME to spend it and enjoy it.
If all one does is go to work everyday and spend every dime, they lack the time AND frankly, often lack the actual money.
It is part of the reason people rely so much on credit. They don't have actual money. So, they are trying to find money that they do not have to spend, only to pay interest on it, and have to work more to pay it all back.
It is a conundrum actually.
Earn as much as you can. Be as frugal as you can on the things you need. Save and invest as much as you can. Earn as much as you can on the savings and investments and grow it. Spend and enjoy the money your MONEY makes. Not money you have to go out and make.
Eventually you can have more, spend more, and because your money is working for you, you have more time to spend and enjoy your time AND your money.
1 person likes this
@porwest (78759)
• United States
3 Jan 23
@lovebuglena Rates will likely go up. But I think if you take half of what you want to invest and put the other half up at the higher rate, you will still do quite well. There is no guarantee the rate will rise. So, locking anything in, to my mind, is a good idea.
