It is uncommon for people who are into personal finance to talk about their debts. As much as possible, people from this field should look clean in the eyes of the people they deal with to gain a good reputation. But today, I have a confession to make. I owe money. It’s a big amount of money and it has interest.
I found a company that lends money for a minimum interest of 4% per annum. I grabbed the opportunity to borrow and put the money in my investment. What is 4% if it can give me a minimum of 12% in a year? That is still 8% gain.
Sometimes we miss opportunities because we fail to look into the possibilities. I am not really recommending what I did. A lot of you might have the wrong impression of borrowing money to invest. Let me reiterate. I borrowed money at 4% interest and put it at 12%. The gain on my investment is higher than the interest of my debt. I am a long term investor and I never trade. I don’t play it safe, I play it smart.