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Borrowing money to invest, Right Or Wrong?
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[QUOTE="Mika, post: 231048, member: 29399"] 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. [/QUOTE]
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Borrowing money to invest, Right Or Wrong?
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