Yes, in this case they even harm their families. Unfortunately, this is what happens all the time. People borrow money because of greed, but they have no ability to pay it back
Borrowing money to invest
- Thread starter cherry123
- Start date
Some people may have the mind of returning the money they borrowed but their are some situations people face some times they is beyond their control just like a health issue. They will spend even the money they borrowed just to be fine
Yes, life is unpredictable, that's why I think borrowing money is a big risk. Personally, I always try to avoid borrowing money because I know I can't pay it back, however, sometimes life forces you.
For me, I feel relying on your own money as your capital is one that can put your mind at rest. And then you will be able to make good decisions
It is true. And another thing, if for example you can't earn 10 dollars and you need to borrow it from someone, what is the guarantee that you can pay it back? I think borrowing is only good for big companies Because they take loans of millions of dollars and need sponsors
Some big companies needs loans to finance some work which they know it will definitely yield good interest, and even if any unexpected events happen they can cover it with their emergency saving
It is wrong to borrow to invest. You should remember that investment is teo edged sword. It can go against you sometimes. In a situation where the business crash, what will you do? It is also important to remember that higher interest simply means that the business is high risk investment.
Well it may not look good to borrow money to invest but there are some cases where an investment as a higher percentage of yielding good return, one just have to borrow
When research is properly done and all the necessary things are in place the chance of getting good returns is high, so in a case like this you can still borrow money
In the world of investment and trading, borrowing of funds is often done by professional short-term investors/traders, especially in instruments with high price fluctuations such as Bitcoin and stocks, which we know as shorting and longing.
Once you are sure of the investment that you will be making good profit from it and you are sure of making the money before the due time, I don't see anything wrong with it
Yes you are right. If you are sure it is true, there is no problem. This is an opportunity, but most investments have uncertain futures and there is no risk-free investment in the world in my opinion
Yes there may not be a risk free investment but there are investments with very low risk. I feel it is ok to borrow money to fund an investment with low risk
One method that I see some people do is, for example, take a loan from a bank and put it in funds that give 30% interest. With this, they can return the bank loan with 20% interest and make some money
Yes if this can work perfectly it is ok. In doing things like this they have to consider the time the bank gave they to return the money and the time they can make all this interest
I would never really borrow to invest, since the risk you run is double, in the event that the investment does not go well and you end up with large losses and to this you add the return of the loan plus the possible interests that today are high, what would you do?
Yes that's right. The only risk this method has is that the private bank may go bankrupt or be a scam.
Investing itself has a lot of risk, and imagine borrowing money from others for this. It is not really wise. Many go to jail with this mistake
