Staying away from taking loans is a good strategy
From a very young age, I have not been a big fan of taking loans. A few years back when I saw my account worth was growing on Hive and when I saw many investment opportunities in the crypto world, it was so tempting to take a loan and try to grow. Already spending time and investing money in the crypto market was pretty risky. Today I can be a little confident but during the early days, it was a big risk for me without knowing the potential of these crypto tokens.
It was so tempting and I really wanted to take a loan and invest everything in crypto. I was thinking that I should be investing a little bit in Splinterlands as well. But before that, I think the best thing that I ever did was to not sell my splinterlands assets just because I did not have enough time to play this game. Today I'm glad that I'm able to reap some good profits from the game. Maybe I should have taken a loan and bought some more crypto assets but I'm really happy with what I have right now.
Real-world loans
Even though I say that I'm not a big fan of taking loans, I do have some serious loans in the real world. I got married a couple of years back and I had to take a loan to spend for my marriage. At that point in time, it was a huge loan for me and it was a huge risk that I was willing to take. Thanks to the family members as they rendered their good support on this matter.
I'm still repaying this loan and hopefully, I might become debt-free by next year. I wish that was my last loan in real life and from next year onwards I should start saving some real money towards my financial independence.
More money gives guts to take bigger risks
The risky thing about dealing with a huge amount of money is that it will let us take a big risk. We will end up investing in something that we are not sure about. If we have a good cash flow, we will not worry about the loss we might end up with and keep taking risks. I have heard stories about people taking bigger risks and losing big. On a positive note, I also understand that if the investment is big and the risk is big the returns can also be very big. But at the same time, if it ends up in a loss, it will also be big.
As my recommendation, I would still say that it is good to live with whatever we have in hand and invest in things that we understand. Taking risks is very good but we should also be ready to face the consequences if things go sideways. I'm glad that even though things were really very tempting, I did not take any loans inside the crypto world. I'm happy that I'm growing very well here and I'm able to save up some decent money to purchase things on my own without any loans or anything.
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Heheh and i have built my sl empire by taking lots of loans :P XD
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Taking a loan to invest, hoping to earn more money than it otherwise could feels tempting. Especially in hindsight.
The problem is that people tend to take bigger risks when they have access to bigger sums of money. Also not just the potential profit, but also the mistakes are amplified. Finally, we make the best financial decisions when there’s money involved that we’re had to work for. Lottery winners are rarely able to keep their wealth. Most of them are back in debt only a few years later.
Just work with what you have and let it grow and don’t compare yourself with others that have been at it longer than you.
The most important asset you can get is an investor’s mindset, where you learn to balance your assets. Spread risk, take calculated guesses etc.
Khaleelkazi from leofinance said in the ama that he is at the stage where he dollar-cost-averages into things, but also takes profit through dollar-cost-averaging which is then dollar-cost-averaged into the next thing. I really like the sound of that and am hoping to get my funds to a level where I can do that as well.
I have thought about this aswell, but I don't think its such a bad idea though hehe.
Since the return you can get on Crypto far outweight the % you have to pay back xD
Same for me, I’m not a fan of loans except in extreme cases. Most times if I ever need to obtain a loan I try to make sure I have a clean clear cut way of paying it back. I know there are people who take loans from these crypto applications that offer loans and use the loan to make money then return their capital, I’ll like to know more of such, then maybe dabble in it.
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Haven had a bad experience with taking loans, I've become extremely antagonistic towards the act. Regardless of the task. Loan taking can be addictive.
It's tempting these days to take loans for investments but it's also extremely risky, especially with crypto investments.
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Taking loan to invest or using the loan for another thing is bad because when you take a loan,it means you are working for the company that loaned you the money until you finish the loan. Taking load is bad, please keep off
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It depends on how much you need to return. For example if its cheaper to get the loan as opposed to using it for something giving you cash flow, then I wouldn't mind. However if its for something that won't give you any extra cash flow, then yes, its a bad idea. Of course you should think through the math and see if it's a good idea and if you are fine with the risk.
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You can do it!
I paid off massive debts this year and I want everyone to be debt-free.
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Hola, lindo tema de finanza. Cuando hablamos de dinero, creemos que tenemos mucho o poco según sea la situación. Creo que es mejor trabajar y ahorrar algo y tener lo suyo y no quitar préstamo. Algunas veces el préstamo nos ahoga. Pero con buen juicio se solventa los gasto, fluye el dinero.
What about crypto loans? Putting collateral your crypto, taking a loan and not paying taxes...isn't it a good option to get into?
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