Never borrow money for an investment! It's like a double negative...if you borrow to invest, you will owe back what you borrowed and won't gain anything.
You never borrow money for an investment because number 1, you will be paying interest on the borrowed money, and even if your investment succeeds VERY WELL, what you get back from it will be pretty much causing a wash - no benefit. Number 2, if your investment doesn't succeed, you will be paying interest on the money you borrowed and in the hole even more than you would have been if you had just used your own money.
If your borrowing money, it's not even your money, so you'd basically be trying to invest your banker's money, while you owe your banker the money, itself. So in conclusion, you have a pile of money you owe to your banker.
for one, you are losing money by having to pay interest. even aside from that, if you lose that money, you are broke, in debt, and paying interest on the loan. and borrowing is also just a bad idea in general, you don't want to be tied down like that. "the borrower is a slave to the lender"
if you borrow to invest and the investment doesn't do well then you have all that money you borrowed to pay back with the interest as well to remind you how stupid you were to borrow that money
It's doubly unwise. In the first place, borrowing money is not a good plan, but using borrowed money in an investment where anything could happen is an even worse plan. You could lose the money you invested which would then take that much longer to pay back with interest so you wouldn't have made anything. You would end up with less than you originally started.
Adam The reason is that the borrowed money has interest. This interest will increase the amount until the money that would get back will not be enough to pay the bank back. Another thing is if the investment doesn't pay off then you still have to pay the money back.
First of all you shouldn't be borrowing money at all, but then to use that money on something that might loose you the money that doesn't really even belong to you is not too smart.
When you borrow money you have to pay interest on it. If you lose the money you borrowed when you invest it, then you end up with less than what you had to start with because you have to pay interest still.
Never borrow money for an investment! It's like a double negative...if you borrow to invest, you will owe back what you borrowed and won't gain anything.
Never borrow money for an investment! It's like a double negative...if you borrow to invest, you will owe back what you borrowed and won't gain anything.
ReplyDeleteYou never borrow money for an investment because number 1, you will be paying interest on the borrowed money, and even if your investment succeeds VERY WELL, what you get back from it will be pretty much causing a wash - no benefit. Number 2, if your investment doesn't succeed, you will be paying interest on the money you borrowed and in the hole even more than you would have been if you had just used your own money.
ReplyDeleteIf your borrowing money, it's not even your money, so you'd basically be trying to invest your banker's money, while you owe your banker the money, itself. So in conclusion, you have a pile of money you owe to your banker.
ReplyDeletefor one, you are losing money by having to pay interest. even aside from that, if you lose that money, you are broke, in debt, and paying interest on the loan. and borrowing is also just a bad idea in general, you don't want to be tied down like that. "the borrower is a slave to the lender"
ReplyDeleteif you borrow to invest and the investment doesn't do well then you have all that money you borrowed to pay back with the interest as well to remind you how stupid you were to borrow that money
ReplyDeletetravis
If you borrow money in order to invest and you loose everything, then you'll have to pay double.
ReplyDeleteAutumn
It's doubly unwise. In the first place, borrowing money is not a good plan, but using borrowed money in an investment where anything could happen is an even worse plan. You could lose the money you invested which would then take that much longer to pay back with interest so you wouldn't have made anything. You would end up with less than you originally started.
ReplyDeleteAdam
ReplyDeleteThe reason is that the borrowed money has interest. This interest will increase the amount until the money that would get back will not be enough to pay the bank back. Another thing is if the investment doesn't pay off then you still have to pay the money back.
First of all you shouldn't be borrowing money at all, but then to use that money on something that might loose you the money that doesn't really even belong to you is not too smart.
ReplyDeleteeyezik
because if you borrow money then you will have to pay it back with interest and if you lose the invested money then you will be in a lot of debt.
ReplyDelete-Jacob
When you borrow money you have to pay interest on it. If you lose the money you borrowed when you invest it, then you end up with less than what you had to start with because you have to pay interest still.
ReplyDeleteNever borrow money! You will always have to pay it all back. Plus interest, so basically you are left with less money than you started out with.
ReplyDeleteNever borrow money for an investment! It's like a double negative...if you borrow to invest, you will owe back what you borrowed and won't gain anything.
ReplyDelete