Topic: Taking loan during high inflation? - page 4. (Read 969 times)
When inflation occurs, the best thing we can do is make an income post, currently there are many options for doing business and the easiest thing is to become an agent or reseller, social media helps us to actively market the products we sell, and loans can be a good solution because can increase income.
I just thought that having an active loan would only burden me financially and it would make me insecure to do anything especially about work. So thankfully my financial condition is still safe now without a loan.
You need to understand that having an active loan isn't a must. So, if you don't need it, never think to have it in your life. People who try to take a loan because they have no longer money for investment, or want to get bigger profits by using loan money. So, if you don't want to take a high risk in investment and you also still have enough money for investment or for your daily needs, taking a loan is surely not needed. What for? Sure, you are very lucky that you have a good financial condition, which makes you never consider taking a loan. 
The scary thing is, giving your money to someone for investment. Is there anyone who understands this scare? I don't know if it is just me. Like for example you are going to get a loan, and then give that money to someones account, so it is all traceable and there is rarely ever anything that would be easily figured out, and yet when you are buying a real estate, a house, it is obvious and simple and tens of millions of people do it everyday right? Yet I would feel scared when buying, I would be sending money and then what if they don't give me the house?
Buying a house is different from giving your loaned money for investment. There's the process for buying a house and you should have the idea on what documents must be shown to you before you purchase that real estate. It's your negligence if you don't know anything before you buy it and let's say that you've followed the process and complete documents are there, you have the right to sue whoever is that person you're talking to that don't want to give the house. You're confused and fear would really give you that headache. 
I haven't taken out a loan during this inflation and so far I haven't thought about doing so. My earnings in crypto and the real world still seem safe enough not to have active loans either in crypto or fiat at banks or people around.
I just thought that having an active loan would only burden me financially and it would make me insecure to do anything especially about work. So thankfully my financial condition is still safe now without a loan.
I just thought that having an active loan would only burden me financially and it would make me insecure to do anything especially about work. So thankfully my financial condition is still safe now without a loan.
The scary thing is, giving your money to someone for investment.
Of course, that's completely unreasonable. But when one has something more to give in the form of a loan regardless if it is for investment or trading then what is the harm? I only think about collateral, it will be safer. 
The scary thing is, giving your money to someone for investment. Is there anyone who understands this scare? I don't know if it is just me. Like for example you are going to get a loan, and then give that money to someones account, so it is all traceable and there is rarely ever anything that would be easily figured out, and yet when you are buying a real estate, a house, it is obvious and simple and tens of millions of people do it everyday right? Yet I would feel scared when buying, I would be sending money and then what if they don't give me the house?
Silly fear, but it is real and I fear that. I have a great great great real estate deal at 60k dollars, which I do not have at all, but it would pay itself back, I just need to pay 5k upfront, and 55k would be loan which renter will be paying basically, and yet I am fearing it a lot, which is funny to some people but I find it a serious problem.
Silly fear, but it is real and I fear that. I have a great great great real estate deal at 60k dollars, which I do not have at all, but it would pay itself back, I just need to pay 5k upfront, and 55k would be loan which renter will be paying basically, and yet I am fearing it a lot, which is funny to some people but I find it a serious problem.
Has anyone done the math for some of us who are not as quick grasping this? I still find this a bit too risky. I think I've heard about this before, supposedly you make your money as the inflation go down or something, can't exactly remember. Still, can people really afford to do this at such times like this?
Taking loan is always risk, but if you've got stable earning to pay the interest along with the capital even if the market isn't supportive then it is not a big risk. There are people who doesn't have big spending, and they are affordable to pay the loan premium from their salary or out of the business. For them taking loan to invest on cryptocurrency will be profiting, because they've got the time which will assure with profit/growth.If you just take a loan to invest it on cryptocurrency then this bad idea you made because especially at this moment we are in bearish season and we don't know the out come on every market movements so if you buy some these days then the price of major coins dump then there's nothing will happen and you will sink in debt. Maybe take loan if you really need it especially by using it on your daily needs or other 100% sure profitable things.
for me taking a loan to invest in crypto is very good but the current time because the crypto market is in a bearish condition. indirectly for the time being can not make a profit from our investment, while the loan continues to mature and must be repaid immediately. Isn't that condition can make us stressed unless you have a reserve of funds to cover the loan due.
and if you look at the current state of crypto where the market is still down for me this is not the right time and I agree it can be stressful for us,
but it all depends on everyone's consideration
No one knows on when it would pump and no one knows on when it would dump or moving sideways on which if you do rely your crypto investment profits to repay those loans or debts then you are putting yourself at risk or too much more deeper problems.
Has anyone done the math for some of us who are not as quick grasping this? I still find this a bit too risky. I think I've heard about this before, supposedly you make your money as the inflation go down or something, can't exactly remember. Still, can people really afford to do this at such times like this?
Taking loan is always risk, but if you've got stable earning to pay the interest along with the capital even if the market isn't supportive then it is not a big risk. There are people who doesn't have big spending, and they are affordable to pay the loan premium from their salary or out of the business. For them taking loan to invest on cryptocurrency will be profiting, because they've got the time which will assure with profit/growth.If you just take a loan to invest it on cryptocurrency then this bad idea you made because especially at this moment we are in bearish season and we don't know the out come on every market movements so if you buy some these days then the price of major coins dump then there's nothing will happen and you will sink in debt. Maybe take loan if you really need it especially by using it on your daily needs or other 100% sure profitable things.
for me taking a loan to invest in crypto is very good but the current time because the crypto market is in a bearish condition. indirectly for the time being can not make a profit from our investment, while the loan continues to mature and must be repaid immediately. Isn't that condition can make us stressed unless you have a reserve of funds to cover the loan due.
and if you look at the current state of crypto where the market is still down for me this is not the right time and I agree it can be stressful for us,
but it all depends on everyone's consideration
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But the question is what if you do not own enough money for investing? can you take a loan and invest?
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I will certainly take out a loan to buy more Bitcoins when the market experiences inflation...But the question is what if you do not own enough money for investing? can you take a loan and invest?
...
Of course this is a very big risk, but that doesn't mean it's a bad idea either (taking loan to buy investment assets). I once worked in a restaurant and the restaurant owner often took loans to the bank, he said "that opportunity only happens once, why not try it even though it's risky".
...
But the question is what if you do not own enough money for investing? can you take a loan and invest?
...
I will certainly take out a loan to buy more Bitcoins when the market experiences inflation...But the question is what if you do not own enough money for investing? can you take a loan and invest?
...
Of course this is a very big risk, but that doesn't mean it's a bad idea either (taking loan to buy investment assets). I once worked in a restaurant and the restaurant owner often took loans to the bank, he said "that opportunity only happens once, why not try it even though it's risky".
I find it extremely risky at the moment. Due to the increasing living costs, there's a risk of a decreased income in the long-term. For instance, I bought a motorcycle a month ago, using my credit card with 12 interest free installments. While I'm receiving approximately the same amount of money per month, my available income has severely shrunk, due to inflation.
If it's for investment purposes, I'd first make sure that I have a decent allowance per month, enough to cover the monthly dose and an extra 20% for safety reasons.
If it's for investment purposes, I'd first make sure that I have a decent allowance per month, enough to cover the monthly dose and an extra 20% for safety reasons.
Has anyone done the math for some of us who are not as quick grasping this? I still find this a bit too risky. I think I've heard about this before, supposedly you make your money as the inflation go down or something, can't exactly remember. Still, can people really afford to do this at such times like this?
Taking loan is always risk, but if you've got stable earning to pay the interest along with the capital even if the market isn't supportive then it is not a big risk. There are people who doesn't have big spending, and they are affordable to pay the loan premium from their salary or out of the business. For them taking loan to invest on cryptocurrency will be profiting, because they've got the time which will assure with profit/growth.If you just take a loan to invest it on cryptocurrency then this bad idea you made because especially at this moment we are in bearish season and we don't know the out come on every market movements so if you buy some these days then the price of major coins dump then there's nothing will happen and you will sink in debt. Maybe take loan if you really need it especially by using it on your daily needs or other 100% sure profitable things.
for me taking a loan to invest in crypto is very good but the current time because the crypto market is in a bearish condition. indirectly for the time being can not make a profit from our investment, while the loan continues to mature and must be repaid immediately. Isn't that condition can make us stressed unless you have a reserve of funds to cover the loan due.
Taking a loan, of course, is only temporary, we cannot continue to rely on loans for our daily needs, and in my opinion the loans we can do are for business purposes, if we take a loan for the necessities of life then we will go bankrupt and assets will be sold to pay debts.
Taking a loan for a business also has to be very careful, let alone taking a loan for long-term investment, so we have to go through careful calculations, because every month we have to repay the loan, and when it comes to investing in cryptocurrencies, we don't know if the bear market will last long. or not, therefore it must be done with careful calculations 
I have a friend who just bought a house, spent about 20k on the house upfront, and took about 45k loan and bought the house. Let's see what happens, inflation is huge in my nation and interest rates are insane, but he could still make a good amount of profit in the long run because the house could worth a lot more. I also had a friend who bought a house for around 50k back in the day, about 4 years or so ago, and now his house worths nearly 300k, inflation is THAT high in my nation.
So, if the same thing happens to this new one, I may actually start looking at selling something I have and buying a house, because it does make people richer. Loans require basically nothing, specially if it's fixed rate, compared to high inflation.
So, if the same thing happens to this new one, I may actually start looking at selling something I have and buying a house, because it does make people richer. Loans require basically nothing, specially if it's fixed rate, compared to high inflation.
Taking a loan, of course, is only temporary, we cannot continue to rely on loans for our daily needs, and in my opinion the loans we can do are for business purposes, if we take a loan for the necessities of life then we will go bankrupt and assets will be sold to pay debts.
This should really be your main concern which you should be minding off that never ever took a loan for the sake of necessity,needs or wants which would really be fucking you up later on on the time that you wouldneed to repay those interest or money borrowed unless if you do have some other source of income then it would really be just fine but if not then better avoid it as much as you could.
You could make out some savings and then make out some investment later on if you had accumulated or saved for long.
Getting a loan is sometimes inevitable as very few people have the money to pay for a house or a car with cash, however I do think that in this age people ask for loans for almost any reason and this is one of the reasons why they cannot escape the rat race, so avoiding loans as much as possible is a good thing and they should only be used when absolutely necessary, which is why I do not really like that people use leverage, which is nothing more but asking for a loan to buy more of the asset they want, as they are multiplying their risk many times over and this means they can lose a great deal of money if they make a single mistake when they trade, something that is quite common.
Maybe that is the definition of necessary or urgent for them. They take loans because they don't have any money in their pockets. They will then use the borrowed money on their risky crypto activities, while for us, urgent and necessary would mean that if we or the people we love are hospitalized and our own savings is not enough to support them.I think this reason is more valid in my opinion, I support this more, than to the first scenario. Another thing that people can do to avoid taking loans is to be contended living on a much simpler life. They don't need to take a loan only to have a car or to have a good house because those things are not really that important.
Taking a loan, of course, is only temporary, we cannot continue to rely on loans for our daily needs, and in my opinion the loans we can do are for business purposes, if we take a loan for the necessities of life then we will go bankrupt and assets will be sold to pay debts.
I think the same. Mathematically it's one thing but when we take psychology into account it's another.
The logic is: if inflation is at 8% and I get a loan at 4% I am making money, but there are many other factors to take into account, such as risk, that inflation can vary downwards, etc. That's why Kiyosaki's method works for far fewer people than Dave Ramsey's, because being debt free gives you a peace of mind that being in debt does not, and all economic choices are influenced by your psychology.
debt free gives you peace of mind
Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?
I think the same. Mathematically it's one thing but when we take psychology into account it's another.
The logic is: if inflation is at 8% and I get a loan at 4% I am making money, but there are many other factors to take into account, such as risk, that inflation can vary downwards, etc. That's why Kiyosaki's method works for far fewer people than Dave Ramsey's, because being debt free gives you a peace of mind that being in debt does not, and all economic choices are influenced by your psychology.
my bad experience investing in Bitcoin using borrowed money from banks, which I won't make the same mistake in the future.
He aslo made a mistake of borrowing money - since he was not a finance - it took almost half of his life to payoff the debt. We always keep that in mind and dont borrow money - unless urgent.
my bad experience investing in Bitcoin using borrowed money from banks, which I won't make the same mistake in the future.
He aslo made a mistake of borrowing money - since he was not a finance - it took almost half of his life to payoff the debt. We always keep that in mind and dont borrow money - unless urgent.
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