Look, there is a way that using debt can be very smart as Robert Kiyosaki says, and it can be when you have enough money in case the investment goes bad, to be able to pay it back without worry, and use this debt to get more wealth without using yours, but if You do not have the money on your own in the first case, do not get into debt because you will be in serious trouble
Borrowing money to invest
- Thread starter cherry123
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Yes, exactly. It makes sense to take a risk with borrowed money if you have enough financial resources to pay it back, otherwise you will be in big trouble. Because in addition to the money, you have to pay the interest on it, and this interest increases every day
Yes, the debt can be beneficial to obtain more wealth but always when you are very solvent, why if not the big companies even having a lot of money get into debt because they know how to use the debt, and they know that they are solvent enough to return the loan and get benefits from the debt, but a person who wants to invest because he does not have the money is a mistake.
They are some people that are In a very good place and they have the investment idea and opportunity but they lack fund. It is not a bad thing to borrow to invest
This is true you could borrow from someone if he is borrowing and the project is studied by you and seems like a professional idea but with some warranties to pay back like signing papers on the municipality for a loan agreement but if someone is borrowing to travel this is not logic to borrow them.
It is not a wise thing to borrow money for traveling or to just have fun. If you are borrowing for an investment purpose and the investment is good. You can borrow to invest
Though I don't like the idea of borrowing to invest at all but if you have done your research about the investment you want to do then you can consider it
yes right Companies have financial backing. They have sponsors and cooperate with companies and banks and airlines. For example, big clubs like Real Madrid and Barcelona may have debts, but they pay their employees' salaries and don't go to jail.
That's okay, borrowing money to invest is only allowed for those (investors) who have qualified skills and are experienced in their field. An easy example, if you are an expert investor and experienced in the property sector, of course it will be very easy to estimate the price of a property, so if you find a property selling at a price below the market, you can borrow money to buy it, and you will benefit from the difference in the selling price. . In the world of crypto and stocks, the system of borrowing money is known as Sorting, which is often used by investors by taking advantage of the downtrend.
Debt is a passive that you can turn into an asset if you are smart and solvent, and on the other hand, debt can become a liability that kills you if you are not solvent and you don't know how to use it. Smart people use debt to build investments and fruitful businesses, but in the event that you do not know how to use it you will go bankrupt, that is why to get into debt you must first be solvent, know how to start businesses and know how to invest.
Yes, you are absolutely right. I think it is better to read a few books about economics and in these fields before borrowing money. Economics is a simple thing on paper but it is very complicated and we have to be careful what we do with money
As for me investment is not something that you must do in life. I think good investments is made by the personal savings or money that belongs to you. This is because most investment comes with some risks and you should invest what you can afford to loose.
Life is hard enough. Let's Don't make it harder for yourself. With debt, we can no longer enjoy life and even food or sleep. If we do not have a specific plan, it is better to forget about borrowing
