7. Borrow Money Only for Investments

Do not look at investments in a narrow sense and limit it only to the stock market. A good investment can be any of the following – a decent house at a good price in a good locality, saving a set amount of money each month for a carefree retired life, a fuel efficient vehicle and so on. The deal is to differentiate real investments from mere purchases. You might think of a plush high-end gadget as a good investment but it too will be out-of-fashion in a few months. So, if you were thinking of getting a home, education or auto loan, this is the time to act.