Hi Peter. Most people here already have money to start investing but I don't. I'm thinking of borrowing to invest. Most will frown at this idea. But what do you think?

Hi, contrary to conventional wisdom, I feel that you don't need to have a hefty amount of savings or ultradeep pockets to start investing.

As a beginner myself, I have recently started my financial journey with Hugo Save, a digital account that helps you spend, save & invest, starting with gold. What's great about it is that there is no minimum balance requirement, penalties or paid fees for maintaining a Hugo Account and you can invest in gold for as low as $0.01 and for as long as you want to. The gold in the Hugo Gold Vault is physical gold allocated to the user and is safe.

If you are keen to build you wealth slowly but surely, you can find out more about the app here: https://www.hugosave.com/

I hope this helps you to make a better decision on your financial journey.

I borrow to invest.

but it's important to know what's the cost of funds before you invest.

I feel that if you are able to borrow at less than 2% p.a. it will be good.

Of course provided your portfolio returns can beat the 2% cost of funds needed.

What i'll do is to use the cost of funds that's being borrowed to invest in an instrument that pays out at least 2% in dividend yield so that i get to cover my interest rate.

From then onwards when it comes to loan repayment time, i have the ability to pay off the interest and roll my loan to the next year(By repaying the loan and getting a fresh loan at the same rate)

Of course do keep your loan less than 10% of your total assets, you don't want a case where you are not able to pay off your loan when the need arises. From there it will be called gambling le.

above all, It's about utililising smart money to help you with your investment. but don't be too smart about it.