Debt Vs Savings



Following are the Main Difference between Debt and Saving.

1. Meaning 

Debt and saving of money are two opposite word in finance area. Debt means, you have not enough money, you take the money from other and pay the interest. On the other hand, you have extra money after consumption and you have saved it and it will be your savings. So, you have the right one more passive income interest on your all past savings.

2. Killer Vs Policeman

Killer kills the person because it is his profession. But he always fears from hanging and try to hide from public and Police. the Debtor or the person who has taken the loan is just a killer. Remember that debtor is not killer of person.

Debtor is killer of Habit of Saving. When a person takes the loan. He makes the habit. His brain thinks what is the benefits of saving. He can take the money on interest for his work and for his personal use. At that time, his saving habit will kill. He will never save the money. He will also always fear from poverty. He will lack of self confidence. He will not grow in life.


A person who saves the money is just a Policeman. When saved the money, it means, he is doing the duty of police. Every new earned money saved means, he kills his fear of poverty. He obeys the law of habits and he became the slave of good habit of saving. So, you can decide what do you take. Debt for becoming the pensioner of life time paying interest. Or take the promise to save money for life time pension in the form of passive income.


3. Buying the Product which Does not Need

A person who takes any personal debt will buy the things which he does not need. So, he will buy many things for showing his ego. Like car loan, do you need it. But it is showing only your status. You are doing private job. You have one wife, parent and 3 kids. Today, company will say to you get out, you will sell car at half price even if you have paid its full installment and be beggar for making the bread for your family

A person who saves the money, never buy the product which he does not need. With this, he save the money and money will grow and grow money will increase his financial independence in future.

4. Side Effect Vs Benefits

If you have taken debt, your mind will be always in tension. This tension will of two types. One is tension of payment of principal amount and second tension of paying installment with interest every month. This will make you anxiety patient.

With Savings of your money, you starts to reserve your fund for emergency and for grow of your business by self disciplined your life. With this, you spend your happy and tension free life.


 5. Conversion 

Yes, Debt habit can be converted into saving habit and useful tool is budget. Just make the list of your income and expenditures of your next month. Check your earning limit and check your unnecessary expenditure. Stop it immediately. Tight your necessary expenses and save your minimum 10% of your earning. Try to pay off your all debt fast and promise yourself not to take debt in future life.

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