Is it your dream to become “rich quick”?
How about a simple solution while you have credibility as seen from a banks point of view?
Let’s see how it could work out.
To become “rich quick” means to make a bet/investment and get very high returns in a short period. I suggest that 1000% is a high return for one bet. But to become rich it is necessary to make 10.000% or more.
1. (Very) high returns
These are never for free. It means someone is taking a good amount out of the possible return as a fee. So the chance must be even too good to be true. There are opportunities which might result in very high returns, but unfortunately these opportunities will mostly be discovered after the event. That means most of these chances that you think are there – are actually fake. I am not saying they don’t exist, but these chances are very rare. If there is a chance of your dreams, you must bet an amount that will make the return being a “one-off” show. And if you don’t have that amount you could borrow it from the bank as a loan.
2. Bets on a loan
It’s very easy to get a loan and then put all the money on this one-off chance. Simply ask your bank. They will really like you. Why?
If chances work out they get a monthly return from the risk that you took for them. Very easy win. The return for them is an agreed interest plus the money that you took out as the loan. This is one fee that you pay for your dream. And even this fee is a month to month obligation that you take. Another might be connected to the chance itself which reduces your returns.
Once you signed up for the debt and bought the option the bank can force you to sell out if the chance does not go into your favored direction and they think the risk is too high. So the risk side must be considered.
3. Risk
When it comes to risk then remember high possible returns mostly have high possible risk, which mostly means complete loss of your capital if the bet results with the wrong outcome. If you lost your complete capital how will you pay back the loan month to month AND collect new capital for investments / bets at the same time?
4. Good returns
There is also the possibility while not being so greedy to take a more normal investment approach. Then you must calculate if your returns are more favorable with or without a loan. But before you begin you must sit down an clearly think about a possible time when even conservative investments “fuck up” and you are on a loan. Can you stand that? Obligations to pay back money periodically that you don’t have can be very hurtful for the mind. Even when it’s your own hard earned capital it’s annoying, but owing to other indifferent parties is another story. I personally never took a loan for investments and I can sleep well. Because I know the only one I owe something is myself.
Example 1
You bet 10.000 $ that you have.
What can you lose: 10.000$
What can you win: On a speculative bet with a good amount of risk involved, i’d say a 100-200% in financial markets is a possibility. It could be more or less but it would not be like 1000% or 10.000%. That means a return of 10.000-20.000$ is possible. Taking a return of 100% for 5 times when you completely reinvest your outcome, what does it make?
100% + 200% + 400% + 800 % = 1500%. In this case 150.000$. Only 2-3 more shots and you made it.
Given the same chances/risks with 10.000% then we talk about 1.000.000$ for a “one-off” show.
Example 2
You bet 10.000$ that you have plus loan 40.000$ that you don’t have.
What can you lose: A lot. If things do not go into your favored direction, you have to pay back 40.000$ + Interest. Interest might be 5-10% per year. How long will it take to be even with the bank?
If you can save and pay back 1000$ per month with a normal job it will take
40 months + 10 months for the interest + 10 months to get back the savings of 10.000$.
That makes it 60 months of painful payback for one wrong decision. That is 5 years of misery until you are free again!!
What can you win: Given the same chances/risks with 100-200% then we talk about 100.000$ to 150.000$. Less 40.000$ less interest makes it 50.000$ to 100.000$. Can you buy a house with this amount? NO! It is an incredible risk for not much better result.
Given the same chances/risks with 10.000% then we talk about 5.000.000$. Less 40.000$ less interest makes it 4.950.000$. Can you buy a house with this amount? Yes! But where is this chance? I haven’t seen it. And it’s “only” 500% better then your safe shot.
My tip
And that is my recommendation: 10.000% profit is very rare and for most people just a dream. So don’t dream and fuck up your life. Make good decisions with the money that you have saved up and then be patient. If you get 100% here and there with a risky bet, take a profit and find the next opportunity.