Borrowing Money for Investment

Borrowing Money for Investment

Early this year, I received an email from one of my subscriber as per below. Let’s call her Ms X to protect her identity.


Thanks a lot for this information..I’m one of your follower..I also love reading your blogs and other inspiring topics.

I have a two sons in college. Last 2011 one of my friend inspired me to open a forex trading account, with a promise that the money will be doubled in a month and without any room for loss. I personally loan from my boss almost half a million, with my desire to have a better life even I have no knowledge about trading. My friend trade the money, I have no choice but to trust her,, but with my surprise with less than a week, her trading was adverse..Slowly everyday it falls down and in a month time the half million got lost..When it happened it was ony the time i tell it to my husband..I handled the stress everyday finding ways how to return it to my boss,,she would even fire me if I would not able to return it to her..It was a 2 year loan and I’m now in a the middle of the friend also helps me to pay the debt..that’s why I decided to look a job abroad..Sometimes I feel of giving up,,I almost cry everyday..Its a big sum of money were paying but was not able to enjoy it.

I learned a lot of lessons from it. Due to stress my health also is now affected…a mass was found in my ultrasound in my left thyroid,,and I was scheduled for biopsy tomorrow.

Sorry for the disturbance, but it feels ok for me writing it to someone who has a very outlook in life. My tears fell as i wrote this..

But still very thankful to the Lord, I’m working in one of the leading Real Estate here in the Philippines. Although my fixed income is only a little bit higher from minimum wage, still the Lord gave me knowledge in sales..Last year I sold 4 lots in different subdivisions our company offers. Although the commissions is divided into how many agents, still it was a great help for me. I believe that God’s live, he sees us and hear our prayers. It was only Him where I get my strength…and reading positive message keeps me going..

Thanks a lot for all your the information you shared in the net. May God continue to bless you and your family.

Ms X


The problem here is that she invested her money with even knowing how the investment will work. She trusted her friend to do the investing on her behalf. And as for the return, I assume her friend also don’t have necessary financial skills to perform as what have promised to Ms X. Lastly, she invested a borrowed money from her boss.

It is never a good advice to anyone to borrow money for investment in the money market. At times when the market is moving up, it is so tempting to get a loan with a minimal interest rate compare to the attractive gains in the market. However, the reality is no one knows when the market will remain profitable. What if you invested when times that the market is going down?

 May her story warn you of the things that can happen when you borrow money for investment.

Keep on learning, educate yourself and become financially literate!

P.S. A year ago, I do not know anything about investment. Then I joined Truly Rich Club by Bo Sanchez. It was the best decision I ever made in my life. Brother Bo is a spiritual preacher and at the same time, financial literacy advocate whose purpose is to help people become rich in order to serve the LORD with the money that they have. He guided me along the way, explaining how I can manage my money and make it work hard for me. Now I’m investing in stocks and mutual funds and have a clear path for my future. Soon I’ll open UITF account as well. All are made possible by his guidance and teachings on every steps to become an investor. Being OFW isn’t forever, this is my EXIT PLAN. It’s amazing how his teachings change my life. I’m inviting you to join the club too, JOIN TRULY RICH CLUB. If you have any question, feel free to leave your comment below. CLICK HERE TO JOIN

About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at) or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

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