Borrowing money to invest, Right Or Wrong?

[TOZZIBLINKZ]

The the intention to borrow money from bank and other financial institutions for the purpose of investing in online and offline investment platforms and websites is considered to be one of the worst and on advisable business and financial risks and individual can take . Borrow it in order to invest is way more different from borrowing in order to establish a business . Although the both of them contain risk but the rate of risk in borrowing money in order to invest is higher done borrowing money in order to establish a business . Despite being risky a good amount of individuals today still borrow money from banks and other financial institution in order to invest in offline or offline investment platforms and websites .

Some of these individuals have calculated the risk and what they are to do , if the investments do not turns out as expected or wanted , while others on the other hand do not plan on what next to do if the investment do not turn out to be as expected or wanted and this kind of individuals will be left confused , frustrated , devastated , remorseful , and disappointed if the investment turns out not to be as expected or wanted . So if we are not able to answer the question of what next to do ? if the investment we intend to invest the money we borrowed from the bank does not turn out as expected or wanted . Then it is advised not to borrow from the bank to invest at all .

 

[eldavis]

Borrowing money to invest is completely wrong, and I would not even advice anyone to do that. Investing your money is risky cause though you expect to make profit from it, but there are times that things might not even go as planned. What happens if you borrow, then the investment goes wrong, how do you pay back?
Early last year I heard a case of someone who borrowed millions just to invest, in the end it turned out to be scam, with no way to pay back, he killed himself.

 

[Ayuba Ernest]

This is another funny scenario. It is totally wrong to borrow money and make an app investment with it.
You should have a good investment plan with the money you own rather than opting in for lending money. If at all what you invested on crashed or didn't work out the way you expected, you would be held responsible and that would cause a huge loss. Instead, you can start up a mini business with the little you have and invest on it and watch it grow. Big thighs starts from the little steps you make. A little move won't hurt you. It is better to start from scratch and be successful than dreaming big and punching about e your weight.

 

[blessingc]

Borrowing money to invest is a call for trouble, the money you put into investment should be an extra money you haven't budgeted for something important, neither should it be a money to be paid back. Before you borrow there's every possibility that you are lacking financially, you aren't stable financially, and if you are to borrow it should be out of necessity with a sure means and a planned time to refund less you get in trouble with the lender

 

[Augusta]

This is a dicey situation which is like looking at both side of the coin. it might turn out good or bad. it just like what I read a while back on one of the social media platforms. A man borrowed 500 naira from his girlfriend to eat but rather went to play lotto with it which was his initial intentions but didn't want to disclose to the girlfriend. At the end of the day he won 250,000 with it. That's what I read and he then return the #500 to the girlfriend but the girl refused to collect and was arguing that since he won the huge amount from the borrowed 500 from her, he should give more at least 50k of the money.

You see borrowing money to invest here was profitable, but if the girlfriend had initially knew he will be investing with it she wouldn't have accepted because she would be thinking of loss. So in essence I wouldn't say it right or wrong. but I just write that one should just borrow and invest what the person can pay back.

 

[Mataracy]

Borrowing money to invest depend on individual capacity about how to manage business.
If you are the type that knows how to manage business very well and also know that when you do the business it would not crash on the way then; I will advise to borrow money to do the business if so wish to.
But in the other way round if you are the type that do not know how to manage the business then I will say that you should not try it because one may latter lose all the resources.
Just try to learn how to do the business and never tired to ask for the directions if the need be.
Also try to manage the little capital you have on you to start the business if you can not get big capital.

 

[Mika]

If you do not have your own money, if you do not have any funding sources, borrowing for the purpose of investment is a good idea. When you invest, you will earn a return on your investment. When you earn a return on your investment, you can use that money to pay back your loan. I will give you some examples, you burrow to buy shares, your shares will earn you dividends that you can use to pay your loan, or sell the shares when the price increases and use the money to pay back on and keep the remaining money as profit. However, when you are burrowing for the purpose of investment, you will have to look into a couple of things, for instance, you need to calculate how much interest you will be paying on borrowing and how much profit you will gain from the investment. If you have to pay more money on interest than the return on investment, borrowing is not a good idea. You will also have to abstain from borrowing in you do not have any ways to clear your debt in case your investment turns wrong. Do not invest if you cannot afford to lose.

 

[Abigael]

Borrowing money to start a business or invest is not entirely wrong. In my own view, this can workout well if you are well planned with the business and you have ensured a great foundation for success. Having included things like proper knowledge of starting and running the business, good money management and other skills and a good location.

The problem comes from starting a business without great knowledge and skills yet you took a loan. Or you are investing in a method that you have not researched about or learnt how it works. For example, you cannot expect to start forex trading with a loan yet you have not learnt how it actually works.

Many people make the mistake of being misguided by their urge to earn a large amount of money easily. So they take a loan hoping that it will increase into something great within a short time. Only to end up loosing it because they did not take time to learn the skill well.

So taking a loan is not bad depending on how you will spend it. Some people will spend it wisely and that will make it a very thing for them. But for other people,, the spend it badly and so that makes taking loan to be really bad.

 

[Sikapa]

Borrowing money yo invest is a dangerous business ever, how sure are you that the investment company is even a genuine? At times some people false themselves into troubles which is hardly for them to get out of it. Even if it is a genuine investment company I still think you will pay for interest on the loan and what if the interest becomes higher than the investment profit? This way of making money is so risky.

 

[sincerem]

If you borrow from the mortgage bank, at least your repayment interest wouldn't be high like that of money lender's option, and other loan companies operating digitally. Not that taking loan is a bad idea, it just depends on the reasons of taking the loan. I won't go and take a loan for personal needs, it should be mainly for my business that is already up and running, I don't see reasons why I'll be going on starting a new business with.a loan, it doesn't make sense, unless the interest is just as low as 1% for the next 365 days. And no loan company will offer such, interest at that long duration covers up to 30%, as such it doesn't look nice tor me to face such kind of uphill struggle to meet up with two things, pay the lon debt and also fend for my own business profit. Such kind of task gonna be hectic one for a beginner like me to cover even if the repayment gonna be made in the next 365 days. Which shows I'm to make double of my capital as profit during that time to cover up the loan, keep my business profit and stay afloat.

 

[btaliat]

It is a wrong move for someone to invest with borrowed money. No matter how real and sure the investment is, we should not have the urge of investing with borrowed money. The following are the reasons for that.

Investment is a risk. No one can tell the future of investment. There is nothing to measure the viability of an investment. Some people erroneously believe that an investment with return on investment is always viable compare to the ones with high ones. But that's not the yardstick.

Also, we should not invest with borrowed money because at the end of the day, we may not realize what we are aiming to realize. For instance, after the repaymentof the investment, there won't be much gain.

Instead of borrowing for investment, we can try to save our personal money and invest with it. Another way of investing is to invest with what we can afford at that moment. This will save us from the embarrassment that may ensued if at all the investment goes haywire.

 

[SensationalEd]

Borrowing money to invest is not a good idea. It's a very high risk which I wouldn't advice anyone to take. What if the investment doesn't pay off and you earn up loosing everything. At least to borrow money to startup a business is ok in the sense that it's a business which will eventually yield profit as time goes on.

 

[Suba]

If you are going to borrow money from the bank, you need requirements, guarantees, identity, etc., which you have to complete and it takes a long process, and you have to make a proposal for what the purpose of borrowing money from the bank is, if for business your business will be reviewed whether your business is feasible or not given a loan. Of course, your loan will be rejected by the bank if you want to borrow it for online investment.

 

[Sotherefore]

Is not really about the borrowing, but the most important thing is what you have to keep in place because getting a loan from a bank or any other official financial institution will ask you keep a collateral before you are eligible to get the loan you are interested .

At least if you have something to offer , you can have a good chance of securing a loan but this is not just about securing a loan there are so many things you also have to consider .

Investment is sometimes something you have to do for long-term purposes . So financial institution may not give you a loan for you to invest in properties for a long period of time of more than two years.

In this case, if you are very sure about the type of investment you are doing , you can just get money and invest in your property as long as you will be able to return back the money within the agreed period of time.

So many people are just interested of getting a loan without having anything to keep in place and sometimes getting a loan for long time like more than two years is not even the best.

 

[Richee84]

Borrowing money to invest is a very good thing to do, though the investment must be done wisely and the loan must not be invested on a newly business that might not have all the require quality to survive. It is better to borrow money and invest the money on a good business that will generate good cash flow back into the hand of the investor. When money are borrow for investment purpose than consumption purpose, it is said that the money borrowed is well and judiciously utilities cause loan is better put to use that will generate more income than to just consume all the money borrowed. Though investing the money borrowed on and investment also has it own risk attached to it, before investing the borrowed money in any business then we must have carry out a comprehensive analysis on that business to be a viable business that have move from the infant stage to growth stage. Growth stage in any business is that stage where we have increase in profit as there is constant or increase sale. It is the stage where the business enjoy good turnover and higher imcome and all most business do here is to expand it business in other to gain more competitive advantage. If a borrowed money is invested in such kind of business in the growth stage then I think is worthwhile.

 

[Jasz]

When you're investing, it's important to know when to borrow and when not to borrow. Borrowing money to invest is a great way to grow your wealth, but it can be risky if you don't have the right plan in place. Here are some tips on how to make sure that you're borrowing money wisely:

1) Make sure that the amount of debt you take on is manageable. The last thing you want is to be so tied up in debt that it prevents you from making good investments.

2) Look at all of your options before deciding how much debt you want to take on, and consider alternatives such as using credit cards or getting a loan from family members.

3) Have a plan for paying back any loans so that they don't become overwhelming, especially if interest rates go up or your investments don't perform as well as expected.

borrowing money can also be a great way to get into the market sooner than expected, especially if it enables investments like real estate or peer-to-peer lending that can help generate passive income or yield high returns over time.