Is it practical to borrow money to invest? Is your return on investments going to cover the interest of the money you loan? These are just some of the questions you are likely to ask if you are interested in investing but your cash is nt enough to start one. To answer this, it depends on where you are going to put your money. There are different kinds of investments and it results to different percentages of yield. In this article, I am going to share with you whether it is practicable to loan to put in certain types of investments. You can use this as a guide to help you decide whether to borrow money or not.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Cebu — April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
If you are thinking to borrow money to start your own business for the first time, I tell you it would be a lot more challenging to loan. It is not practicable to use the money you loan to start your first business because this is prone to failure and disappointments. Since you are just starting to learn the business industry, it would be better if you use your savings to start the venture. From time to time, you will learn to invest your money only in the things you are knowledgeable of.
If we are talking about borrowing money to expand your business, it is practicable since you already have sufficient knowledge on how to operate as an entrepreneur. By now, you are aware of the market, you can forecast your revenues and expenses, you know who your customers are, and you can already track the peformanxe of your business. Since you are already knowledgeable of these things, I recommend borrowing money for your company’s expansion.
For those who are thinking to invest in stock market using the money you borrowed, it is not practicable to do so. Remeber that the stock market is not constant. There are times that you will win and you will lose. If the loan is your only source cash, it will be hard for your to recover if you lose significant amount of the money in stock market. Better to use your savings to start investing in stocks.
Now that the demand for real estate is growing, the market is good for investors, even for newbies. If you want to borrow money and start investing using it, real eatate is one of the best investment types you can try. Unlike in stock market, your income here is fixed depending on how you manage your finances from your rental income. There is also a guarantee that you will receive monthly return from renting your condo and apartment units. If you’re interested, better to put your money in real estate than in stocks.