Is it worth going into debt to buy gear?

No matter if you do photography as a hobby or for a living – it costs money. A lot of it. Because of this,ny people consider taking a loan to buy gear. In this video, Josh Enobakhare (aka Olufemii) discusses if this is a smart move or not.

If you’re “I want it all and I want it now” type of person, you probably think of going into debt as a way of getting the gear you want as soon as possible. On the other hand, you may rather take it step by step just so you don’t have to owe anyone anything. I must admit, I am this latter type, but according to Josh – there are times when it’s perfectly fine to go into debt just so you can buy gear.

Before you consider making a loan, though, you need to ask yourself three questions:

1. Would you make more money with this gear than you would without it?
2.  Are you able to go into debt interest-free?
3. Would you be able to save the amount of money that gear costs within one year?

If the answer to all these questions is “yes,” Josh suggests you should go for it. If you can make money with the gear, it will practically pay itself by the end of the loan period.

But there’s another benefit. For example, if you saved up from Januar y to December, you’d only have the equipment in December. On the other hand, if you borrowed money and bought what you needed in January, by December you could have the debt paid off. But as a bonus, the gear would have been with you for that whole year. You used it to create art (or at least rent it), and you made money doing it.

If you earn money from photography or filmmaking, think of this as investing in your business. After all, I don’t know a business that started off without going into debt, and they paid it off through working and selling their products or services. So if this is your business, it’s a sensible thing to take a loan and invest money into it.

Now, of course, this all sounds pretty reasonable for all those who live from photography or filmmaking. However, if you buy expensive gear just for a hobby and fun, it doesn’t really work this way, as the gear doesn’t bring back the money you invest into it. Still, if you have a steady job and earn enough to cover the debt within a year, then again – go for it, if that’s what makes you happy.

So what do you think? Is it worth going into debt just to buy gear? Have you ever done it and would you do it again?

[Going into Debt to Purchase Film Equipment? via SLR Lounge]