How to Invest Now Without a Dime in the Bank

November 10th, 2008 — Debt, Leverage, Money, Personal Finance, Stocks, Wealth 

opportunity-knocksIf you’ve ever had a chance to invest in a great stock but didn’t have enough money put aside to take advantage of the opportunity, you know too well the agony of defeat. Most of us are under the impression that it takes money in the bank to start investing. If you’re not financially stable or independently wealthy, that means that you’re going to have to watch a lot of opportunities pass you by. Or does it?

There is a way that you can start taking those opportunities by the horns right now, before you have money put aside. Debt leveraging, when used properly, is an incredibly powerful tool that can really make the difference in your financial future. In most of us however the word debt conjures up some pretty unpleasant images. We’re all trained to think that debt is bad, that debt will ruin you and that debt should be avoided at all costs.

What if you were to change your way of thinking and embrace the fact that debt can be a very powerful tool? What if you stopped thinking of debt in only one light and realized that there are many different kinds of debt? We’re not here to tell you to run out and buy everything your heart desires, racking up all sorts of debt. That is why debt has such a bad reputation. The temptation to buy things we don’t need or can’t afford is pretty strong and millions of people end up falling into debt traps every single year.

That is mainly because they don’t use debt to make money. They use it to spend money and end up in way over their head. Instead of looking at debt in the traditional manner, we want you to start realizing that debt has the potential to change your future. You can use debt to start making those smart investments and start reaping their benefits right now.

Let’s say that you have the chance to purchase ten shares of a stock with your own money in the bank. It does well and you get a nice little payday. Wouldn’t it have been nicer to purchase ten thousand shares and retire? By getting a loan to purchase those ten thousand shares, you could have made more than enough to cover the costs of that loan and still retire. You can keep thinking small and making little returns here and there, but over time, they’re going to get eaten up.

If you want to make it big, you’re going to have to start leveraging debt in a smart way. We’re not saying get a loan and blow it on a non-performing risky stock. We’re saying, find the opportunities, research them and when you’re sure you’ve got a winner on your hands, go all in. Don’t waste your time with a few shares here or there. Get that loan, use options, and/or margin your portfolio to get more shares and get the benefits that debt leveraging can bring.

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