Recently we heard in the news that more students in China are investing in stocks and shares. The stock market has been increasing over the months. We are expecting a correction but none of it has happened. People are reaping profits and enjoying gains from stock and shares investment, so much so that students are quitting their studies to invest in shares. Nobody want to miss this golden opportunities.
Is it logical or right to take up personal loans to invest in shares? Should you borrow money? Is it worthwhile to apply for personal loans to ‘gamble’? There are people around me who are doing these. Some people even withdraw money from their credit cards to invest in shares. Others try to borrow money from friends, parents or colleagues when the bank fails to grant them a personal loan. When the bank disapprove their application, it is helping them in a way?
I am now neutral to loan application. If the person feels that they are confident enough to ‘win’, they are able to pay back their loan amount to the bank and at the same time ‘earn’ profits from their loans, then why not? There are just too much things to discuss about loans. The Thrifty Scot has lots of loans articles. I find two articles which I like. They are ‘Is using a loan for buy to let a good idea?‘ and ‘Timing Your Spending Spree’.
When it comes to personal finance, I think there is no right or wrong answer. You are in charge of your life and you are responsible for your action. Whether you are using other people’s money or using your own money. As long as you can pay them back and you are comfortable with it, I think just follow your heart!
